Wall Street has been eyeing the technology sector for quite some time, with robotics, internet companies, and drone stocks seeing good growth. In this post, I’ll focus on drone stocks, including some you can invest in, and what you need to know if you want to invest in them.
In this article:
- A Disclaimer About Investing in the Drone Sector on the Stock Market
- Categories of Drone Companies Based on What They Offer
- Drone Manufacturer Stocks
- Drone Tech Stocks
- Military and Government
- Drone Auxiliary and Support Companies
Drone Stocks | What You Need to Know About This Sector
A Disclaimer About Investing in the Drone Sector on the Stock Market
I’ll be listing drone stocks here, but please note that none should be construed as a guarantee of profits, dividends, or capital gains.
All stocks and companies listed here are for informational purposes only.
The stock market is difficult, if not impossible, to predict. This includes anticipating the earnings and corporate events for a company.
The drone market is growing, which is why I want to shed some light on this industry.
However, if your investment philosophy doesn’t align with the purchase of these drone stocks, you may want to study more. A wrong move can make your early retirement plans go awry.
Categories of Drone Companies Based on What They Offer
In this article, while I’ll talk mainly about drone stocks, you’ll also see familiar names of startups known to operate in another market or sector.
Most investors associate drone stocks with both the tech and robotics sectors. Here are some basic categories for them based on what they offer:
- Companies that have drones as their main product, such as drone manufacturers
- Those that serve the drone market by offering drone tech and other services, such as by selling compatible software, camera, or lens products
- Companies that operate in another sector where drones also are also used. This includes organizations that have tried to vertically integrate drones to consolidate business operations, such as the military, government, and auxiliary companies
Drone Manufacturer Stocks
1. AeroVironment Inc. (AVAV): Unmanned Aerial Vehicles Manufacturer
Investors who want a direct investment in drone stocks can think about AVAV. Most known for their Unmanned Aerial Vehicle Units (UAV), AeroVironment offers products for both the commercial military market and the consumer sector of drones.
What is an Unmanned Aerial Vehicular Unit (UAV)? This refers to an aircraft that can function without a pilot on board, like a drone.
The company has a wide range of products, with some drones as small as a wallet, and some military-grade drones as big as a helicopter.
2. Sony Corp. ADR (SNE): Big Electronics Player
Investors are probably familiar with Sony. The electronics giant has a lot of products, such as cameras, TVs, and drones, too.
The Japanese corporation not only manufactures drones but also offers financial services and entertainment. Sony has the largest music entertainment player, the biggest game console (PlayStations), and produces movies and TV shows.
With a healthy profitable portfolio, Sony can leverage its vast network and expansive manufacturing infrastructure to take the drone market to new heights.
Most of the focus from Sony is with the consumer market. Unlike AVAV’s mixed clientele, Sony has drones primarily for entertainment, either for personal or professional use.
3. Drone Delivery Canada (TAKOF): A Possible Logistics Titan
Drone Delivery Canada is a growing business with an eye for air traffic delivery. The company is capitalizing on North America’s demand for fast, reliable, and novel ways for delivery.
TAKOF has started its drone delivery market by focusing on niches first before moving to a wider market.
Currently, TAKOF specializes in:
- Medical Supply/ Distribution
- First Responders
- E-commerce delivery
- Postal Delivery
- Parts Distribution
TAKOF made headlines when it unveiled The Condor. This aptly named drone can carry 180 kilograms and travel 200 kilometers using its propulsion engine, which can make deliveries not only faster but also cheaper.
4. Teradyne (TER): Another Old Player in the New Drone Market
With more than half a century of high-tech manufacturing under its belt, Teradyne has gained the trust of many high-profile clients with their expertise in making components and semiconductors.
It started its foray into the drone market by purchasing robotics company Universal Robots. With the newly acquired company, Teradyne has higher growth potential through capital gains and dividends, as well as a new revenue source.
Drone Tech Stocks
5. Google/Alphabet (GOOGL): Giant with a High Market Cap
Google isn’t just a search engine — it also has other business operations like cloud computing and AI. While Google doesn’t directly manufacture drones, it has invested in Wing, an autonomous delivery drone service.
Investors looking for a method to indirectly invest in the drone market can try Google. This well-established tech stock can provide investors not just exposure to drones but also to biotech, internet marketing, advanced intelligence, and robotics.
6. Medtronic (MDT): Irish Company with Billions in Revenue
This Irish medical technology company has great earning potential with its strategic purchases.
With a market cap of over $120 billion, this medical giant has deep enough pockets and stable revenue and profits to start their foray into the drone market through its subsidiary Mazor Robotics.
Their move has started to show promise.
One important product is the Renaissance Guiding System (RGS). With the RGS, surgeons can make surgical procedures much more accurately as small drones guide them and provide information.
It also helps a patient during surgery, particularly neuro-surgery. The drone and robot provide balance and control for surgical instruments inserted in the brain.
Military and Government
7. Northrop Grumman Corp. (NOC): Department of Defense Partner
Through its government contracts for defense and reconnaissance UAV products, the NOC has sold more than $17 billion worth of drones in the past year.
One of the company’s latest deals is it provides Multi-Function Active Sensor Radar Systems for the MQ-4C Triton unmanned aircraft system. This deal is valued at more than $375 million.
8. Boeing Co. (BA): Global Aircraft Industry Player
While generally known for its commercial aircraft and passenger planes, Boeing actually serves as a defense contractor. Currently, Boeing produces unmanned aircraft systems and drones to minimize casualties in foreign lands.
9. Kratos Defense and Security Solutions, Inc. (KTOS) Military Drone Systems
Kratos has a specific department that negotiates and deals with the military.
They manufacture military drones, specifically unmanned ones. KTOS also provides systems for rockets as well as support equipment for communication on the battlefield.
Drone Auxiliary and Support Companies
10. FANUC (FANUY): Japanese Consumer and Commercial Robotics Manufacturer
Fanuc is a Japanese Robotics company that specializes in factory automation and building robots for manufacturers.
This company has already manufactured its 500,000th robot for commercial companies and private consumers. It’s als0 planning to expand by building more factories.
Drone investors may want to look at this Japanese company as companies involved in drone manufacturing have a high chance of using FANUC services and robots.
11. Rockwell Automation (ROK): Software and Hardware Drone Support
Investors looking for tech manufacturers may want to give ROK a look. On the other side of manufacturing, Rockwell Automation provides software and quality control for factories and manufacturers, particularly for drones.
This robotics company also installs and provides communication equipment and hardware controls for robots and drones.
12. Heico Corp. (HEI): An American Defense Company Providing Drones High-Tech Equipment
For investors who want a diversified company, they may want to check out HEI.
While HEI mainly manufactures aircraft and defense equipment, drone companies and consumer buy their electro-mechanical parts. Specifically, industrial and commercial companies that use drones contact HEI for replacement parts.
HEI primarily tapped into the drone market by purchasing AeroAntenna Technology and Interface Displays & Controls, Inc.. These two companies provided Heico not only a direct link to the drone market but also to new clients since Heico can sell their parts to these subsidiaries.
Sometimes, commercial drones may damage their sensors as well and the electronic system that allows the drones to fly. Using HEI’s military-grade equipment, companies can find an affordable supplier of durable parts.
You can think of Fanuc as specializing in drone manufacturing, Rockwell as providers of software and hardware systems for drones, and Heico as providers of replaceable parts and upgraded equipment.
It bears repeating that all of the top drone stocks may not fit with how you plan your investment strategy for retirement.
Drone stocks are the hot new thing for investors, and the growth may slow down or accelerate. This depends on how well both the market and the specific company is.
As you can see, the drone stocks I’ve listed usually encompass another sector. Diversifying can be a great way to protect your assets.
Whatever stocks or industry you choose, you can reach your retirement goals. Just remember to do your homework first to know as much as you can about the investment before jumping in.
What got you interested in drone companies and potentially investing in them? Let us know in the comments section below.
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