9 Top Drone Stocks to Buy in 2019
Drones are a growing business that benefit multiple sectors. These include anything from media creation, delivery, to defense. As the technology matures, drones can carry heavier weights and fly further.
Here are the top companies working on drone technology:
🛫 Industrial Aerospace
Drone Delivery Canada Corp (FLT-X)
A drone delivery company that is conducting trials in Northern Ontario, delivering packages that are less than 10 pounds. They are expanding into the US, and are also testing drones which can carry up to 2500 pounds for long distances. The technology can be used for packages, mail, medical supply, or any kind of delivery need.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The Edmonton airport deal is positive and the company continues to announce engagements over the last couple of months. Revenues are still low though it has hit $450K on a trailing twelve month basis last quarter. Unlock Premium - Try 5i Free
They recently completes a first test flight for their electric vertical takeoff and landing (EVTOL) aircraft. They developed the concept through their subsidiary Aurora Flight Sciences, which is also a partner with Uber for their flying taxi project. Their craft is looking very promising as the prototype completed a controlled takeoff and hover before landing.
Elbit Systems (ESLT-Q)
An Israel-based international defense electronics company that produces Unmanned Air Vehicle (UAV) Systems. These crafts are used by armed forces and governments, including a recent contract with the Brazilian Air Force and by the Swiss Federal Department of Defense for its new reconnaissance drone program.
The defence industry in total is starting to roll over. The Biden administration is not viewed as oriented towards defence spending so this is why it has gone down recently.
HEICO CORP (HEI-N)
They produce subcomponents used in commercial and defense satellites, aircraft, Unmanned Aerial Systems (“UASs”) and launch vehicles. Their components were used in NASA’s Curiosity.
Heico makes replacement parts for old airplanes, and has been thriving on Boeing’s woes. It boasts a 57.74% total return in the past year at a 15.95% profit margin. More impressive, reports David Driscoll, since 1970 Heico has risen 10,000% (on par with Amazon) and its parts have never been in an accident in that…
L-3 Communications Holdings (LLL-N)
In the defense field. Their Drone Guardian C-UAS system provides a flexible and scalable system against threats. Their communications devices are often used in other companies drones, since it is a military standard issue.
Great company and has done very well but a good entry point would be a lot lower than where it is now. Trading at about 45X this year's earnings and 35X next year's. Hitting on all cylinders but they better be to maintain those multiples. Any diversion from their growth rate will mean big damage…
Northrop Grumman (NOC-N)
An American global aerospace and defense technology company that produces unmanned (UAV) surveillance aircraft. They are a recognized leader in Autonomous Systems. They are a big supplier for the US military and are now opened up to sell to the EU and Japan.
A major U.S. defense contractor that manufactures weapons, and military and commercial electronics. 25% of its revenues come from cybersecurity, a hugely growing area. They also provide the army with drones for thwarting other unmanned systems.
He's adding to his holdings. He expects it to earn $5/share this quarter or a reasonable 16-17x PE. The aerospace business is starting to return to normal post-Covid, so there's a lot of runway ahead.
Textron Inc (TXT-N)
Textron Systems’ high-performance unmanned systems are used by both military and commercial enterprises. Part of their business is Bell Helicopter, Cessna Aircraft. They are one of the leading providers of business jets and armoured vehicles for the military.
Doesn't cover this closely, but they are a big business jet manufacturer. There has been an oversupply in that industry. Going forward, as corporate profits improve, you usually see affirming in business jet orders. They also have a defence operation as well. She wouldn't be inclined to buy at these prices.
Harris Corp. (HRS-N)
They provide and integrate small UAS in the National Airspace System (NAS)
Most famous for military radios, but also has diversified into a number of unrelated businesses, including “ship to shore” communication offshore oil rigs. There may be a management change coming. He doesn’t like their diversification away from the military business. Although he likes military electronics, there are much easier ways to do it using much…