The drone industry has seen enormous developments over the recent past, so much so, that investor are now more than any time before interested in the industry. We are going explore three drone technology stocks that promise to lead the revolution in the industry.
STMicroelectronics NV STM
STMicroelectronics NV STM is renowned as a global leader in the semiconductor industry. They research, design, develop, manufacture, and even market a wide variety of semiconductor integrated circuits. Additionally, they also manufacture discrete devices that are used in various activities and appliances. The Swiss-based company is currently focusing on chips for use in 3-D printers, internet of things appliances, and also drones.
STMicro, which has a VGM score of %u2018A%u2019, has been ranked as a #2 (Buy) on the Zacks Rank. However, it earning growth estimates are astonishing. For instance, in the current quarter, STM expects a year-over-year of about 760%, with an upward revision and zero downward revision. The company is also placed in a strong industry, the Semiconductor-General, which is among the top 10% of all industries ranked on the Zacks industry.
Lockheed Martin LMT
Lockheed Martin’s is a defense industry aerospace giant with a history of making drones that are used by the U.S. military as well as their allies. Importantly, though, the company has made drone technology a focus of their business and they continue to invest heavily in this industry. For instance, they are looking to invest in armed drones, which is highly likely to shore up their bottom line. This will especially be the case if the Department of Defense continues to support oversee sales as it currently does.
Lockheed Martin Ltds stock currently has a #2 (Buy) rank on the Zacks Rank. The stock also has a VGM score of 20182019 with the Aerospace-Defense being in the top 30% on the Zacks Industry Rank. However, the ranking of this industry could improve if President Trump 2019s defense budget is approved. With regards to earnings, the company has posted the earnings performance better than the past 4 consecutive quarters with a mean earnings surprise of 12.41%. The company’s project earnings growth in the current quarter is expected to be a year-over-year growth of 5.43%. It could be one of the drone stocks to buy.
While it has a #3 (Hold) on Zacks Rank, AeroVironment AVAV is probably the best option for investors looking to invest in drones, aside from DJI, a company that is still privately held. AeroVironment is small-cap company that is profitable. It has its foot in the military and civilian sphere. The Raven drone, one of its products, is one of the most popular drones.
However, the AVAV stock has gone through periods of volatility. Nonetheless, some of its earnings have shown to be quite promising. In the current quarter, AeroVironment project to have a year-over-year sales growth of about 44% and year-over-year earnings growth of approximately 330%. It is expected to have an earnings surprise of 73.68%. Investors looking for a pure play option in the drone industry, AeroVironment%u2019s stock are an exceptional bet. It is however, a risky one so be cautious.