5 best drone stocks to buy

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 5 best drone stocks to buy
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Highlights

  • A Canadian drone company is set to manufacture sensor-based drone solutions for military projects.
  • One of the aerospace companies discussed here is developing unarmed aerial systems (UAV), which are commercially used in the agricultural sector
  • Amid evolving technologies in the defence sector and rising online delivery demands in the consumer space, the research and development of drones and UAVs is swiftly expanding.

Research and development (R&D) in the aerospace engineering space are on the rise. And in the race to upgrade drone systems, the United States and Canada are few of the top contenders.

While some drone companies are designing and manufacturing drones for military operations, others are working on developing unarmed aerial systems (UAV), which are commercially used in the agricultural sector.

On that note, let us look at some of the drone stocks trading in North America.

 

1. Drone Delivery Canada Corp (TSXV: FLT)

Drone Delivery is a drone development and designing company. It delivers drone systems to government organizations, retail clients, etc..

Drone Delivery and Nexaya Canada, an industrial equipment manufacturing company, is set to jointly work on sensor-related drone solutions for military projects. Moreover, the Canadian drone company also recently earned its domestic cargo license under Canada Transportation Act (CTA) and Air Transport Regulation Canada.

Stocks of Drone Delivery closed at C$ 1.2 apiece on August 26, with a C$ 268-million market cap. Over the past year, its stock price expanded by nearly 74 per cent.

Drone Delivery posted a price-to-book (P/B) ratio of 6.667.

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2. MDA Ltd (TSX: MDA)

The C$ 1.9-billion market cap company engages is the development of space technology in Canada, such as unarmed aerial systems (UAV), eobotics, etc. MDA Ltd also supplies components used in the space programs. It got listed on the Toronto Stock Exchange in April 2021.

The stock price closed at C$ 15.96 on August 26, having risen about seven per cent in the last one month and by nearly 14 per cent from its one-year low of C$ 14.07 (April 7, 2021).

The company's stock price reached a 52-week high of C$ 18.88 on April 12.

MDA Ltd posted a debt-to-equity (D/E) ratio of 0.17 on August 26.

Also Read: 6 space & drone stocks to buy before they rocket to the moon

3. AeroVironment Inc (NASDAQ: AVAV)

The aerospace company is a supplier of unmanned aircraft systems, satellites, and other services to the US and international governments.

AeroVironment held a market cap of US$ 2.5 billion 97 and a return on equity (ROE) of 4.16 per cent on August 26, while its earnings per share (EPS) was 0.97.

At market close on August 26, AVAV stocks were priced at US$ 101.13, trading 71 per cent above its 52-week low of US$ 59.13 (September 24, 2020).

The scrip had increased by nearly 32 per cent over the past year.

Also Read: Drone Delivery (TSXV: FLT) & AeroVironment: 2 Drone Stocks to Invest In

4. AgEagle Aerial Systems Inc (NYSEAMERICAN: UAVS, UAVS:US)

AgEagle Aerial Systems Inc is known to manufacture advanced UAV, which are typically used in the agricultural sector.

AgEagle stock held a market cap of US$ 2.45 billion and posted a P/B ratio of 2.59 (at the time of writing).

On August 26, the stock price of the company closed at US$ 3.27, up by nearly 35 per cent for the past one year. At this level, however, the stock price was down almost 38 per cent on a quarter-to-date (QTD) basis. 

5. Northrop Grumman Corporation (NASDAQ: NOC, NOC:US)

Northrop Grumman Corporation produces satellites, sensors and other aeronautical and defense structures.

With a market cap of about US$ 58 billion, Northrop Grumman stock price closed at US$ 366.76 on August 26. It was trading roughly three per cent below its 52-week high of US$ 379.02 (June 4, 2021) and noting a year-to-date (YTD) growth of roughly 20 per cent.

The company also held an EPS of 27.72, an ROE of 43.55 per cent, and a return on assets (ROA) of 10.62 per cent.

Northrop Grumman is set to pay a quarterly dividend of US$ 1.57 per share on September 15 this year. Its dividend yield was 1.71 per cent and its five-year dividend growth was 11.81 per cent on August 26. 

Bottom line

Amid evolving technologies in the defence sector and rising online delivery demands in the consumer space, the research and development of drones and UAVs is swiftly expanding. Such factors could help the industry grow further in the future.

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