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Summary
- The drone industry has been registering quite a rise in demand across the world.
- The drone services market is estimated to grow at a compound annual growth rate (CAGR) of about 60 per cent, according to a recent study.
- Amid rising COVID-19 cases, Drone Delivery Canada is likely to start delivering vaccines as it is reportedly in talks with provincial and federal governments in the country.
Drone delivery is no longer a futuristic technology beyond our reach. In fact, its market has been registering quite a rise in demand across the world. Keeping that in mind, let’s explore two drone stocks – Drone Delivery Canada Corp (TSXV:FLT) and EHang Holdings Ltd (NASDAQ:EH).
The drone services market is estimated to grow at a compound annual growth rate (CAGR) of about 60 per cent, according to a study by research firm Markets and Markets. The industry’s estimated value, which stood at US$ 4.4 billion in 2019, meanwhile, is expected to increase to US$ 63.6 billion by 2025.
On that note, let’s jump into the details of these two drone stocks.
Drone Delivery Canada Corp (TSXV:FLT)
Amid rising COVID-19 cases, Drone Delivery Canada is likely to start delivering vaccines as it is reportedly in talks with provincial and federal governments in the country. The company is already offering logistical support to several warehouses, depots and government agencies.
One-year stock performance of Drone Delivery (Source: Refinitiv/TR)
Drone Delivery stock grew by roughly 77 per cent over the past year. Its year-to-date (YTD) growth stands at 47 per cent, outperforming the TSX 300 Composite Index which climbed by about 33 per cent in comparison.
The drone company saw its cash and cash equivalents climb to C$ 23.5 million in 2020, up from that of C$ 9.8 million in 2019.
EHang Holdings Ltd (NASDAQ:EH)
Back in January, aerial vehicle (AAV) maker EHang Holdings collaborated with several companies, including JD.com, to formulate China's first national standard for express delivery services.
The Chinese company saw its total revenues climb to RMB 180.1 million in 2020, up from that of 47.8 per cent in 2019. Its revenues from air mobility solutions increased to RMB 106 million last year, up by 23.3 per cent year-over-year (YoY).
Ehang’s stock skyrocketed by about 90 per cent in the span of a year and swelled by roughly 17 per cent YTD.
One-year stock performance of EHang Holdings (Source: Refinitiv/TR)
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
