Drones are becoming an integral part of our lives. Who would have thought that we could see drones flying around for daily life purposes? So, let’s have a look at the best drone stocks in this article!
In more recent years, drone technology has grown and the market has expanded. In earlier days, drones were heavily used for military use only but the technology is now available for commercial use as well.
There are 372,000 commercial drones and 500,000 non-commercial drones registered with the US Federal Aviation Administration. Whereas, it’s expected that the unmanned aerial vehicle (UAV) market will reach $58.4 billion by 2026.
On the other hand, the commercial demand for drones will also increase with time. Whether it’s deliveries from Amazon or inspections of your local telephone poles, the investment case for drones is that they have the potential to become integrated into our communities.
You guys might be interested to know some drone stocks that can add value to your investment portfolio. Therefore, we bring you the top five drone stocks that have potential in the long run.
Factors To Consider Before Investing in Drone Company Stocks
In recent years, the drone industry has experienced exponential growth, presenting an enticing opportunity for investors.
However, before diving into drone companies to invest in, it’s crucial to carefully assess several key factors that can significantly impact investment outcomes.
By considering the regulatory environment, market potential, competitive landscape, financial performance, and management team, investors can make sound decisions and maximize their chances of success.
The regulatory framework surrounding drones is constantly evolving. Investors should closely monitor regulations related to drone operations, airspace restrictions, privacy concerns, and licensing requirements.
Understanding how regulations may impact a drone company’s operations is essential for gauging its growth prospects and potential risks.
Evaluating the market potential of a drone company before selecting drone companies to invest in is crucial.
Factors such as the size of the addressable market, demand for drone solutions across industries (e.g., agriculture, logistics, cinematography), and the company’s ability to capitalize on emerging opportunities are all vital considerations.
A comprehensive market analysis can provide valuable insights into a company’s growth trajectory.
The drone industry is highly competitive, with numerous players vying for market share.
Assessing a company’s competitive advantage, technological innovations, intellectual property portfolio, and partnerships can help investors gauge its ability to stay ahead in this rapidly evolving industry.
Understanding a company’s unique value proposition and market positioning is crucial for long-term success.
Examining a drone company’s financial performance is vital before investing. Key metrics to consider include revenue growth, profitability, cash flow, and debt levels.
Additionally, evaluating the company’s investment in research and development, as well as its ability to secure funding, can provide insights into its potential for sustained growth.
A strong management team is integral to a drone company’s success. Assessing the team’s expertise, industry experience, track record, and strategic vision can help investors gauge the company’s ability to execute its business plan effectively.
A competent and capable management team increases the likelihood of overcoming challenges and driving long-term value.
Best Drone Stocks To Invest In 2023
Some of the best drone stocks to consider for investment in 2023 are listed down below.
These companies are well-positioned to benefit from the growing demand for drones in various sectors, such as agriculture, delivery services, and surveillance.
EHang Holdings Limited (EH)
The first of the best drone stocks on our list is EHang Holdings Limited (NASDAQ: EH). EHang is a Chinese-based firm that provides the world’s leading autonomous aerial vehicle (AAV) technology.
We began with a commercial drone company because you would see these commercial drones in your streets soon. However, talking about EHang, the company is well-positioned as it has a solid customer base.
EHang and Xi’an Aerospace Investment Technology Innovation Development Holding Group Co. have formed a strategic alliance for urban air mobility (UAM) and smart city management.
Xi’an municipal government-backed XAIC has given EHang a purchase order for 20 EH216-S units, to be delivered by 2025.
Kratos Defense & Security Solutions Inc. (KTOS)
Moving on to the second of the best drone stocks on our list is Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS).
Kratos is a leading firm in combat and warfare weapons. Kratos mostly works in collaboration with the United States National Security Service.
Kratos secures a $46.7M NSWCDD contract for testing thermal materials in reentry conditions.
The Alabama-based Kratos SRE business unit will conduct thermo-mechanical and aerothermal ground tests, aiming to enhance ballistic reentry protection. The initial award is $8.6M under a five-year cost-plus-fixed-fee agreement.
AeroVironment Inc. (AVAV)
The third of the best drone stocks on our list is another defense contractor, AeroVironment Inc. (NASDAQ: AVAV). AeroVironment is a leading contributor to the US defense.
The company provides drones to the US Department of Defense and international allied governments. AeroVironment’s three major products are the Raven, Wasp, and Puma models. In total, the company produces around 10 UAVs.
AeroVironment, Inc. recently unveiled the Puma VTOL kit, enabling seamless integration with Puma 2 AE and Puma 3 AE SUAS.
With this optional kit, the combat-tested Puma gains versatile capabilities, eliminating the need for runways or open spaces. Launch and recovery are now possible in any location, anytime.
The Boeing Company (BA)
The fourth of the best drone stocks to add to your portfolio is The Boeing Company (NYSE: BA). Boeing is known for airline and fighter jets, but the company has emerged as a rising player in the drone market.
Air Niugini this week agreed with Boeing to acquire two fuel-efficient 787-8 Dreamliners. This purchase aims to expand the long-haul fleet of Papua New Guinea’s national airline, facilitating new routes, and promote inbound tourism.
The 787 Dreamliner has gained immense popularity, with over 1,600 orders from 85 global customers, thanks to its impressive fuel efficiency, range, and flexibility. It has already enabled airlines to establish 350 nonstop routes since its introduction in 2011.
AgEagle Aerial Systems Inc. (UAVS)
Next on our list of the best drone stocks is AgEagle Aerial Systems Inc. (NYSE: UAVS), which is a fairly small company. Though AgEagle is small in valuation, it has grown over the past years.
AgEagle soars with its cutting-edge RedEdge-P drone sensor, blending high resolution and RGB composite capabilities.
This groundbreaking release unifies the RedEdge-P and RedEdge-P blue cameras, propelling AgEagle’s aerial imaging technology to new heights.
It provides an experience of seamless integration and unparalleled performance in one remarkable solution.
Ambarella Inc. (AMBA)
Ambarella, Inc. (NASDAQ: AMBA) is also among the best drone stocks, It is a leading developer of semiconductor products for video and image processing.
While Ambarella is not a dedicated drone company, its technology is used in various applications, including drones. In a groundbreaking achievement, AMBA has just unveiled its latest triumph in securing a pivotal CV3 platform victory.
This significant accomplishment was made possible through its collaboration with the esteemed Continental.
The collaboration encompasses not only the cutting-edge CV3 System-on-Chip (SoC) but also their revolutionary autonomous driving software stack intellectual property (IP).
This remarkable feat marks a remarkable milestone for AMBA in the realm of L4 commercial vehicle applications, showcasing their unwavering commitment to innovation and driving the future of transportation forward.
CACI International Inc. (CACI)
Although not primarily a drone company, we put CACI International Inc (NYSE: CACI) among drone technology stocks as it offers solutions and services related to unmanned aerial systems (UAS) and drone technology.
CACI mostly serves defense, intelligence, and government services organizations. CACI is committed to fostering a brighter tomorrow through investments in STEM education and opportunities for young innovators.
CACI Cares, the company’s philanthropic division, recently partnered with the San Antonio Museum of Science and Technology (SAMSAT), an emerging tech museum promoting and empowering STEM education, and inspiring future advancements.
Teledyne Technologies Incorporated (TDY)
Teledyne Technologies Incorporated (NYSE: TDY) secured its place in our best drone stocks list for being the parent company of Teledyne FLIR LLC, formerly FLIR Systems Inc.
FLIR is a leading provider of thermal imaging systems, sensors, and solutions. While they have a diverse range of applications, their thermal imaging technology is often used in drones for tasks like search and rescue, inspection, and security.
FLIR recently unveiled the cutting-edge G-Series, a range of advanced cooled-core optical gas imaging (OGI) cameras. These cameras aid leak detection and repair (LDAR) experts in effortlessly pinpointing and recording hazardous gas leaks.
The G-Series empowers individuals in industries like oil, gas, manufacturing, steel, and utilities to focus on fixing leaks and gain a deeper understanding of emission severity, reducing documentation time.
AerCap Holdings N.V. (AER)
AerCap Holdings N.V. (NYSE: AER), another best drone stocks, is a global aircraft leasing company. While not a drone-specific company, the broader drone industry’s growth can indirectly impact AerCap’s business.
As the demand for drones increases, there may be potential opportunities for leasing companies like AerCap to provide leasing solutions for commercial drones used in various industries.
ASKY, the Pan-African Airline based in Togo, has inked lease deals with AerCap for two pre-owned Boeing 737-8 MAX planes. Delivery of these aircraft is set between June and August 2023.
Kraken Robotics Inc. (KRKNF)
Last but not least in our list of best drone stocks, we’ve Kraken Robotics Inc. (OTCQB: KRKNF) is a Canadian marine technology company specializing in underwater robotics and sonar systems.
While their focus is primarily on underwater applications, their technology can be relevant for remotely operated vehicles (ROVs) and autonomous underwater vehicles (AUVs), which share similarities with drones.
Kraken Robotics secures a secretive $9.5M deal with an undisclosed Asian-Pacific navy. The agreement entails providing advanced sonar gear for mapping the seabed with exceptional precision.
Kraken’s cutting-edge KATFISH minehunting solution will be deployed, accompanied by comprehensive support, training, and operational assistance. The customer’s identity remains confidential.
We have also included a list of 10 other drone stocks that should also be considered for 2023.
- General Dynamics Corporation (NYSE: GD)
- GoPro Inc. (NASDAQ: GPRO)
- Leidos Holdings Inc. (NYSE: LDOS)
- Trimble Inc. (NASDAQ: TRMB)
- Applied Materials Inc. (NASDAQ: AMAT)
- Intel Corporation (NASDAQ: INTC)
- Garmin Ltd. (NASDAQ: GRMN)
- NVIDIA Corporation (NASDAQ: NVDA)
- BAE Systems PLC (OTCPink: BAESY)
- NV5 Global Inc. (NASDAQ: NVEE)
Anti Drone Technology Stocks
The Global Anti Drone Market is set to achieve remarkable growth, surpassing a valuation of USD 16.7 billion by 2031, compared to its modest value of USD 0.8 billion in 2021.
This substantial growth is projected to occur at an impressive compound annual growth rate (CAGR) of 36.2% during the period of 2021 to 2031.
In view of that potential growth, we have compiled a list of 5 anti drone technology stocks listed in the United States, along with a brief description of each company:
DroneShield Limited (DRSHF)
DroneShield Limited (OTCPink: DRSHF) offers a range of anti-drone solutions, including detection systems, countermeasures, and command-and-control software. Their products help organizations detect and mitigate potential drone threats.
Raytheon Technologies Corporation (RTX)
Raytheon Technologies Corporation (NYSE: RTX) is a leading aerospace and defense company involved in various areas, including anti-drone technologies.
They offer counter-UAS (Unmanned Aircraft Systems) solutions to detect and mitigate drone threats.
Northrop Grumman Corporation (NOC)
Northrop Grumman Corporation (NYSE: NOC) is a major defense contractor and technology company.
For their focus on developing innovative solutions for national security, including anti-drone technologies, we have added it to our list of anti drone technology stocks.
Thales S.A. (THLLY)
Thales S.A. (OTCPink: THLLY) is a multinational company that specializes in various sectors, including aerospace, defense, and security. They have offerings related to counter-UAS systems and technologies.
Hensoldt AG (HAGGY)
Hensoldt AG (OTCPink: HAGGY) is a German company specializing in defense and security electronics. They have developed sensor solutions and counter-UAS technologies to detect and mitigate drone threats.
Military Drone Stocks
The military drone market experienced significant growth in recent years. In 2022, its value was estimated at USD 13.42 billion.
Looking ahead, the market is projected to continue expanding, with an expected valuation of USD 14.49 billion in 2023.
This upward trajectory is set to continue, as analysts predict that by 2032, the market will reach an impressive value of USD 28.84 billion. This represents a compound annual growth rate (CAGR) of 7.59% over the entire forecast period.
The continuous rise of military drones reflects the increasing demand for advanced aerial technology in military operations and highlights the sector’s potential for continued innovation and development.
So, here is the 5 Wall Street-listed military drone companies to invest in 2023:
Textron Inc. (TXT)
The first company in our list of military drone stocks is Textron Inc. (NYSE: TXT). It produces the Shadow Tactical Unmanned Aircraft System (TUAS), which is widely used by the U.S. Army and Marine Corps.
The Shadow drone provides real-time reconnaissance and surveillance capabilities.
Elbit Systems Ltd. (ESLT)
Elbit Systems Ltd. (NASDAQ: ESLT) is an international defense electronics company that develops and manufactures unmanned systems, including drones.
They offer a range of unmanned platforms and payloads for intelligence gathering and other military applications.
L3Harris Technologies, Inc. (LHX)
L3Harris Technologies, Inc. (NYSE: LHX) is next on our list of military drone stocks This is a defense company that produces a range of military technologies, including unmanned systems.
They offer drones for intelligence, surveillance, and reconnaissance missions, as well as for other military applications.
Aerojet Rocketdyne Holdings, Inc. (AJRD)
Aerojet Rocketdyne Holdings, Inc. (NYSE: AJRD) is a company that specializes in aerospace and defense technologies.
Headquartered in the United States, it designs, develops, manufactures, and sells advanced propulsion systems for space, missile defense, and tactical systems.
Safran SA (SAFRF)
Last on our list of military drone stocks is Safran SA (OTCPink: SAFRF). It is a French multinational company that operates in various sectors of the aerospace, defense, and security industries.
It is a leading supplier of aircraft engines, aerospace equipment, and defense systems.
Safran designs manufactures, and services engines for commercial and military aircraft, as well as providing a wide range of aircraft systems, equipment, and components.
Drone Delivery Stocks
With each passing day, drone delivery services continue to push the boundaries of convenience and efficiency in the world of logistics. So we have compiled a list of the best drone delivery stock to invest in 2023.
Drone Delivery Canada Corp. (TAKOF)
Drone Delivery Canada Corp. (OTCPink: TAKOF) is a Canadian company focused on developing and implementing drone delivery solutions.
Their comprehensive system, including hardware, software, and logistics support, enabling the safe and efficient transport of packages and supplies to remote areas helped us place the company in our list of best drone delivery stock.
The company is revolutionizing the logistics and transportation sectors through innovation and industry partnerships.
Joby Aviation, Inc. (JOBY)
Joby Aviation, Inc. (NYSE: JOBY), an American aerospace company, specializes in electric vertical takeoff and landing (eVTOL) aircraft.
Their goal is to create air taxis that are quiet, efficient, and capable of transporting passengers in urban environments.
Backed by strong financial support and partnerships with Toyota and Uber, Joby Aviation is well-positioned to lead the market in electric air transportation and revolutionize urban air mobility.
Parrot S.A. (PAOTF)
Parrot S.A. (OTCPink: PAOTF), a French company, is renowned for its consumer and professional drones, as well as other wireless products.
Their drone offerings include recreational, commercial, and specialized drones for agriculture and industrial applications.
Parrot is dedicated to innovation, consistently introducing new features and technologies to improve drone capabilities and the user experience.
With its strong brand recognition, Parrot has established itself as a prominent player in the drone industry, earning its place in our list of the best drone delivery stock.
Drone adoption is on the rise, captivating the attention of consumers and companies alike. Among various industries, it is the retail sector that is at the forefront of embracing this technological advancement.
Retailers are utilizing drones for a multitude of purposes, with drone delivery being the most prominent and easily recognizable.
This revolutionary concept involves the direct transportation of products through drones, providing a glimpse into the future of retail logistics. Some of the big companies adopting drone technology are as follows:
Amazon.com Inc (AMZN)
Amazon.com, Inc.’s (NASDAQ: AMZN) Prime Air aims to deliver packages within 30 minutes, utilizing autonomous drones guided by GPS systems.
This innovative approach could revolutionize the delivery industry and give Amazon a competitive advantage.
Alphabet Inc (GOOG)
Alphabet Inc.’s (NASDAQ: GOOG) project called Wing partners with FedEx and Walgreens to provide efficient delivery services, focusing on packages and health products.
The drones used by Wing are powered by an all-electric system, prioritizing speed and minimizing environmental impact.
United Parcel Service, Inc. (UPS)
United Parcel Service, Inc. (NYSE: UPS) Flight Forward became the first drone service to operate as a commercial airline after receiving approval from the FAA.
While currently limited to suburban and rural areas, UPS has the autonomy to expand its drone operations as desired.
Walmart Inc. (WMT)
Walmart Inc. (NYSE: WMT), surprisingly ahead of Amazon in this domain, has emerged as a leader in drone delivery services. In 2022 alone, Walmart completed over 6,000 drone deliveries, surpassing Amazon’s recent venture.
Walmart’s commitment to embracing innovative technologies ensures its position at the forefront of the evolving retail landscape.
Evaluating Drone Stocks: Factors To Consider
The emergence of drones has revolutionized various industries, from e-commerce to agriculture, and this technological innovation has not gone unnoticed by investors.
Drone stocks have become an attractive option for many investors looking to capitalize on the growing demand for unmanned aerial vehicles.
However, before diving into this exciting market, it is crucial to consider several factors that can impact the performance of drone stocks.
Market Potential and Industry Growth
One of the primary factors to evaluate when considering drone stocks is the market potential and industry growth. It is essential to analyze the current and projected market size for drones and understand the sectors driving their adoption.
Industries such as logistics, agriculture, defense, and cinematography are among the key sectors leveraging drone technology.
Researching market reports and forecasts can provide valuable insights into the growth potential of drone technology stocks.
The regulatory environment surrounding drones can significantly influence the performance of drone stocks. Drone operations are subject to regulations imposed by aviation authorities, which may vary across different countries.
Understanding the regulatory landscape and monitoring any changes or updates is essential for investors.
A favorable regulatory framework that supports drone integration and promotes innovation can be beneficial for drone companies and their stocks.
Competitive Landscape and Market Share
The drone industry has witnessed a surge in competition, with numerous companies entering the market. Evaluating the competitive landscape and understanding the market share of different drone companies is crucial.
Analyzing factors such as a company’s technological advancements, product portfolio, strategic partnerships, and customer base can help assess its competitive advantage and growth potential.
Market leaders with a significant market share may be more stable investment options.
Financial Performance and Revenue Streams
Investors should carefully review the financial performance and revenue streams of drone companies before investing.
Analyzing key financial indicators such as revenue growth, profitability, and cash flow can provide insights into a company’s financial stability.
Additionally, understanding the various revenue streams, such as product sales, service contracts, or software licensing, can help assess the sustainability of a company’s business model.
Risks and Challenges in Investing in Drone Stocks
While the drone industry presents exciting investment opportunities, it is crucial to be aware of the risks and challenges associated with investing in drone stocks. Consider the following factors before making investment decisions:
The drone industry is rapidly evolving, and companies face ongoing technological challenges.
These challenges include improving battery life, enhancing flight range and stability, developing advanced sensors and cameras, and ensuring compliance with safety standards.
Investing in drone stocks involves the risk of technological advancements from competitors or potential setbacks in research and development.
As previously mentioned, regulatory risks are significant in the drone industry. Changes in regulations or stricter enforcement can impact drone operations, leading to potential disruptions and financial losses for companies.
It is crucial to stay updated on regulatory developments and their potential impact on drone stocks.
Market Volatility and Uncertainty
The stock market, in general, is subject to volatility and uncertainty, and the drone industry is no exception. Investor sentiment, economic conditions, geopolitical factors, and market dynamics can all influence the stock prices of drone companies.
It is essential to diversify your portfolio and consider the long-term potential of drone stocks rather than short-term fluctuations.
How to Buy Drone Stocks
Investing in drone stocks can be done through the following steps:
Research and Due Diligence
Begin by researching drone companies and understanding their business models, financial performance, and growth prospects.
Evaluate the factors mentioned earlier, such as market potential, competitive landscape, and regulatory environment. Conduct thorough due diligence before making any investment decisions.
Choose A Stockbroker
Select a reputable stockbroker or an online trading platform that offers access to the stock market. Ensure that the chosen platform provides access to the specific stock exchanges where drone stocks are listed.
Open A Trading Account
Follow the stockbroker’s instructions to open a trading account. This typically involves providing personal information, completing necessary forms, and depositing funds into the account.
Place Your Order
Once your trading account is set up, you can place orders to buy drone stocks. Specify the number of shares you wish to purchase and the price at which you are willing to buy.
Market orders buy stocks at the current market price, while limit orders allow you to set a specific price at which you are willing to buy.
Monitor and Manage Your Investment
After purchasing drone stocks, it is essential to monitor your investment and stay updated on relevant news and developments in the drone industry.
Regularly review your investment portfolio, and consider setting up stop-loss orders or implementing a trailing stop strategy to manage your risk.
Invest In Drone Stocks Now!
Investing in drone technology stocks now will help investors soar above the competition. As the drone industry expands rapidly, these technological marvels will revolutionize various sectors like delivery, surveillance, and agriculture.
By seizing this opportunity, you’ll secure a stake in the future of innovation and profit from the sky-high potential of drone stocks.
Frequently Asked Questions
What Is the Best Drone Company To Invest In?
Investing in the best drone company offers a gateway to a flourishing market fueled by technological advancements and diverse applications.
With a stellar track record, cutting-edge innovations, and a global presence, drone stock growth potential is immense.
The expertise, strategic partnerships, and relentless pursuit of excellence make many drone companies an enticing investment opportunity.
Should You Invest in Drone Stocks In 2023?
Investing in drone stocks in 2023 holds significant potential. The drone industry is experiencing rapid growth, driven by advancements in technology and expanding commercial applications.
Increased demand for delivery services, infrastructure inspection, and surveillance creates an optimistic outlook.
However, thorough research, monitoring market trends, and assessing company fundamentals are crucial for informed investment decisions.