Drone stocks are relatively a new industry to most investors but these companies will provide some of the best overall returns in the future.
The COVID-19 pandemic accelerated the shift towards drones in our society because these amazing machines can help in many different ways.
The global drone market is expected to grow to $42.5 billion by 2025 with a CAGR of 13%. That means many smaller companies will grow along with sales as more people embrace the futuristic capabilities of drones.
In this article, I’ll cover several drone stocks that you can buy to profit from these technological shift.
Best Drone Stocks
- Ehang (NASDAQ:EH)
- AeroVeronment (NASDAQ:AVAV)
- Ambarella (NASDAQ: AMBA)
- DraganFly (OTC:DFLYF)
- Parrot (OTC:PAOTF)
eHang – Best Chinese Drone Manufactur
EHang is one of the world’s leading autonomus aerial vehicle producers based in China. The company’s flagship product is the eHang 216, a self-flying drone that can transport passengers across crowded urban cities.
The key to success for eHang is deliveries of its drone vehicles. After filing for bankruptcy in 2018, Ehang went public on the NASDAQ in December 2019 at an IPO price of $12.50.
The company generated $5.1 million in Q2 2020 revenue (up 67% YOY). Even though COVID-19 made things more difficult, eHang provides the type of vehicles that can ease traffic problems worldwide.
AeroVeronment (NASDAQ:AVAV) – Best Military Drone Stock
AeroVeronMent is the #1 supplier of drones to the U.S. military and expects a ton of revenue growth in the future. The company generates the bulk of its revenue from the Department of Defense sectors (U.S. Army, etc).
The company is already profitable and saw record revenue growth during the fiscal year 2020. FY 2020 EPS was $1.72 per share and the company is currently profitable.
While the stock doesn’t pay a dividend, it’s only at a market cap of less than $2 billion. As the U.S. government increases its spending on drones in the future, AeroVeronment should benefit alongside its goverment defense spending.