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.
Industry is in its infancy with a ton of little companies. Only one or two will succeed, and the winners will be snapped up by the global aerospace companies. Speculative, not an investment at this stage.
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.
They report Wednesday. He expects them to deliver weak numbers and may need to raise more money. However, Air travel is already coming back and he expects the airlines to order a lot more planes.
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 Top Pick Sep 22/20, Down 10.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with NOC has triggered our recommended stop at $295. We recommend covering the position at this time. We will look for better opportunities.
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.
(A Top Pick Jun 17/20, Up 37%) It's waiting for things to line up to do well on a fundamentental basis. Their aerospace business lags, but aerospace in general will come back. Defence is their stable business, based on dependable US defence budgets. This creates a lot of free cash and could lead to share…
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…