A rundown of the top drone stocks with the highest potential for profits this year.
There’s no denying that drones are poised to make big changes to our societies in the coming years. Drones, or unmanned aerial vehicles (UAV), are also being looked into as possible precursors to manned missions to Mars and other parts of our solar system.
UAV is growing in use within fields such as military, commercial, government & law enforcement, and consumer applications. With such exciting developments, no wonder investors are flocking to the stocks of drone companies. In a June 2021 report, it is projected that the UAV Market is expected to reach $58.4 billion by 2026, at a growth rate of 16.4% during the forecast period.
Top 10 Drone Stocks to Buy in 2022
If you want to cash in on this rapidly growing market then know that we got you covered. We have taken the liberty of compiling a list of the 10 most promising drone stocks for you. This will help you get a grasp of the ever-changing drone market and which company you’d feel like taking a chance on.
1. AeroVironment (NASDAQ: AVAV)
Market Cap: $1.41 Billion
Founded in 1971, AeroVironment is an American defense contractor company that specializes in unmanned aerial vehicles. They currently have several contracts with the US Department of Defense to build drones, missile systems, and satellite technologies. It holds the distinction of being the Pentagon’s top provider of small drones – supplying notable models such as the Raven, Wasp, and Puma.
Recently though, the company has made a move to sell drones to consumer markets as well. This is a necessary step made by the company to diversify its portfolio and tap into a larger market. Last year, it acquired a German robotics company called Telerob and a privately held company called Arcturus, a developer of large drones.
Though it disappointed some investors with poor stock performance in September of 2021, the company hopes that it’s recent expansions and growing demand for more sophisticated drones will result in growth. The stocks of AeroVironment have seen losses of -9.60% year-to-date.
2. Boeing (NYSE: BA)
Market Cap: $117.68 Billion
Other than being one of the world’s leading manufacturers of commercial airplanes and military aircraft, Boeing is also looking to bring its 100 years of expertise into the drone market as well. Although drones only make up a small part of the company’s yearly income, many forecasts tell of growing revenues and demand for Boeing drones.
The stocks of the company have been struggling overall in the past few months. Their shares are trading by -0.68% year-to-date, and -2.59 over a span of 12 months. This can be attributed to the restriction of the pandemic on mobility, reducing travel, and, as a result, the demand for commercial planes. That being said, the company has weathered many storms over the decades and always comes back stronger (and more profitable), afterward. And when looked at over a period of 5 years, the company’s stocks have gained by 24.20%.
Boeing stocks represent an investment not only in drones but in a diverse portfolio with a plethora of sectors from which to pull profits.
3. EHang Holdings (NASDAQ: EH)
Market Cap: $866.57 Million
If you’re the kind of investor looking for a company that might be the leader in an entirely new sector of the market, then EHang Holdings might be the company you’re looking for. Unmanned passenger flights are a likely and natural next step for drones, and EHang Holdings is one of those companies that’s working tirelessly to make this a reality.
Founded in 2014, this Chinese company initially showed off its drone technology online in 2018, envisioning that its passenger drones would be part of smart cities worldwide. The Civil Aviation Administration in China approved EHang’s drones for commercial passengers back in 2020. This has led many other countries to also start trials with EHang to bring their drones abroad. EHang also recently announced a successful test flight of a passenger drone in Japan with more test flights on the way. With all these developments, it seems that it’s only a matter of time before passenger-carrying drones revolutionize the way we travel within cities — maybe even between countries.
Although the company had a turbulent few months, the same can be said for most companies operating during the pandemic. Though it seems that EHang is on the rebound with shares gaining by 3.39% year-to-date.
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4. Parrot (OTC: PAOTF)
Market Cap: $137.87 Million
Parrot is a French drone manufacturing company that makes some of the world’s most popular hobby drones. People buy Parrot drones to capture incredible images either for photography or for some good old fun.
Though most of the company’s annual revenues stem from everyday consumers, the company is also trying to cater to military and professional markets with its release of the ANAFI USA – designed for professional applications like firefighting and security.
This is a smart move on the part of the company since the military is by far the largest customer of drones. Parrot is still priced under $10, meaning many investors believe it to be a value stock although we advise being wary of volatility before investing.
5. AgEagle Aerial Systems Inc. (NYSE: UAVS)
Market Cap: $90.38 Million
Another American drone manufacturer, AgEagle makes drones mainly for commercial use. Where it differs is that the drones made by this company have a fixed-wing design and are used for tasks like aerial mapping and crop monitoring. With drones, these tasks become much easier, especially for small companies with little manpower.
As for the company's future, there are plans for them to introduce drone usage for e-commerce deliveries — something that could make deliveries on the same day of purchase and greatly reduce the cost of logistics.
Apart from drones, the company also manufactures sensors for vegetative analysis through its subsidiary MicaSense. This, along with several ongoing acquisitions and new product launches, means the company is constantly innovating and diversifying its portfolio.
Perhaps the only downside to the company is that its stocks are trending downwards. In fact, with -90.51% over the past 5 years, it seems the company’s stocks have been struggling for quite some time. But when you consider that AgEagle Aerial Systems is still in its early stages of growth, and the amount of forwarding momentum it’s showing overall, better days might be ahead.
6. Amazon (NASDAQ: AMZN)
Market Cap: $1.52 Trillion
Though not a manufacturer of drones, at least not currently, Amazon is likely to benefit from the growing popularity of drones as one of the world’s largest e-commerce platforms. When anyone from a private individual to a small company thinks about getting drones, their first instinct is to look for it on Amazon.
On top of that, the company has a substantial global delivery operation, leading it to consider unmanned aircraft as a delivery solution. In 2019, testing for the Amazon Prime Air delivery drones took place for the first time. This, along with the Federal Aviation Administration (FAA) getting close to finalizing the rules for drone delivery, means that we can expect to see flying Amazon packages very soon.
Since the company’s founding, you’d be hard-pressed to find a month where the stocks didn’t perform well. Over the past 5 years alone, the stocks of Amazon have gained by 281.02%. On February 4, 2022, the company also set the record for the highest Market Value Gain on a single day, increasing by 14% or a $191 Billion jump.
Though drones are not the main contributors to Amazon’s growth, the company stands the most to gain from the growth of drones in the market. Investing in it represents a safe but indirect bet on the drones industry in the coming years.
7. Alphabet Inc Class A (NASDAQ: GOOGL)
Market Cap: $1.80 Trillion
The parent company of Google, the world’s most widely used search engine, Alphabet is one of the largest companies on Earth and one of the most intensely-watched picks on the stock market.
Though Google is involved in the development of many different types of technology, they are making strides when it comes to drone technology. Most notably, the company is building up Wing – a drone delivery program that currently flies in the United States, Australia, and Finland. There are plans to eventually expand the program to other countries around the world too.
The Wing program aims to enable small businesses to make drone deliveries as an option for local customers. The drones used in the Wing program can cover short distances very quickly and are ideal for delivering perishable food items. Widely successful in Australia, the Wing program has already surpassed Amazon in terms of drone delivery.
Though not a pure-play on the drones market, the share price of Alphabet has been up to over 60% since the beginning of 2021 – proving that it can constantly deliver for investors.
8. Northrop Grumman (NYSE: NOC)
Market Cap: $57.74 Billion
If you’re looking for a company that focuses mainly on making military drones, then Northrop Grumman should be your first choice. With 90,000 employees and annual revenues of over $30 billion, it is one of the world's largest weapons manufacturers and military technology providers. They are also makers of a range of high-tech drones for the U.S. Air Force. Their most notable product is the Global Hawk, a surveillance model used for intelligence and data collection.
Other than the US military, the company also sells military-grade drones to NATO and NASA as well. With a price tag of around $90 million per drone, and governments as its main source of clients, the stocks of this company are generally more stable than other drone manufacturers.
With stocks coming close to all-time highs over the past year, it is safe to say that this company is doing quite well financially. A huge driver of this growth is space technology, with Northrop Grumman recently winning a contract for over $1 billion to build a moon station.
All that makes Northrop Grumman an ideal pick for long-term investment.
9. Draganfly Inc. (NASDAQ: DPRO)
Market Cap: CAD 50.42 Million
A Canadian firm developing drone products for over two decades, Draganfly stocks, priced at below $5 each, are currently considered to be penny stocks.
Penny stocks are the stocks of small companies that can be bought for cheap. If the company grows and performs well over the succeeding years, then you would see massive profits with only a very small initial investment. But then again, that’s a big “if”. It is always advised that you take caution before investing in any penny stock, no matter how promising.
With all that said, Draganfly boasted an impressive third quarter with gains across the board. They make drones for the military, law enforcement, agriculture, energy, and many other industries. They also offer custom engineering, training, flight and data services, and more to clients.
Though a penny stock, the company has all the right ingredients needed for a meteoric rise soon.
10. UAV Corp. (OTC: UMAV)
Market Cap: N/A
Another penny stock, UAV Corp. is an American company that develops drones through its subsidiary Skyborne Technology. Unlike traditional fixed-wing drones, UAV Corp. is using an airship design called SENTINEL to get off the ground to serve a function as an in-air unmanned command center.
The company even bought a local airport in Florida to test its products. The main purpose of their products seems to be to provide communication in the event of natural disasters, power outages, severe weather, or even an attack. A smaller unmanned craft can launch from the balloon for scouting and reconnaissance.
They hope to have SENTINEL ready and flying within this year.
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And those were the top 10 most promising drone stocks to consider this 2022. Although there’s still some way to go before drones become a common part of our society, it really is only a matter of time. The market is already changing rapidly as a result of drones and governments all over the world are looking to drones to solve a myriad of problems outside the military.
With proper research, luck, and an investment in the right company, there’s no denying that your profits can soar as high as drones can fly.