Unmanned aerial vehicles (UAVs) have come a long way since their inception, and with the drone market projected to reach new heights, the future seems bright for this disruptive technology.
Drone technology’s rise is being fueled by a number of factors, including advances in artificial intelligence, an increased need for surveillance, and a growing demand for unmanned aerial vehicles in the military sector.
Drones are anticipated to play an even larger role in a variety of industries as they become more sophisticated and adaptable, creating a sector with significant potential for investors.
According to Technavio, the global drone market is estimated to grow by USD 27.78 billion from 2022 to 2027. The drone sector is estimated to grow at a CAGR of 13.58% during the forecast period. Moreover, the growth momentum will accelerate.
Investors are increasingly turning their attention to this exciting sector, which shows no signs of slowing down. Let’s look at four players in the drone industry, each with their own unique strengths and potential for growth. From established industry leaders to up-and-coming penny stocks, this sector is full of opportunities for investors looking to capitalize on this cutting-edge technology.
Epazz, Inc. (OTC: EPAZ) is a mission-critical provider of drone technology, blockchain mobile apps, and cloud-based business software solutions. Recently, the company has been focused on their subsidiary, ZenaDrone. Recently, ZenaDrone, announced that it had been granted a utility patent by the US Government for its innovative AI-predictive drone Smart Charging Pad.
The Smart Charging Pad is a game-changer in the drone charging industry, as it offers a more affordable solution for charging drones that weigh over 250 pounds. This utility patent paves the way for international patents to be filed in countries such as Ukraine, the United Kingdom, the European Union, Canada, Australia, South Africa, and Brazil, which could lead to even more business opportunities for Epazz.
With its advanced technology and environmentally friendly design, the ZenaDrone Smart Charging Pad is capable of understanding and learning from its surroundings and selecting the optimal energy source, making it an appealing choice for businesses operating in remote areas.
The ZenaDrone 1000s is the company’s flagship drone. Equipped with updated AI predictive automation software, the ZenaDrone 1000 is specifically designed for use in the military, as well as oil and gas, and agriculture industries. Moreover, Epazz recently submitted Phase 1 SBIR proposals to the U.S. government, which could result in significant government contracts worth up to $15 million over the next three years if the company is selected in the process.
The banning of Chinese-made drones within the US government has opened up significant opportunities for Epazz. According to the company’s CEO, Shaun Passley, Ph.D., “We are taking multiple pathways to become a government contractor of drones. It is a major opportunity for us, as Chinese drones are banned in the US government. It has opened up major demands for our drones.”
Epazz, Inc. (OTC:EPAZ) is a promising investment opportunity for those seeking to capitalize on the rapidly expanding market for cutting-edge drone technology. With the recent utility patent granted to its ZenaDrone Smart Charging Pad, Epazz is well-positioned to move into international markets and secure government contracts. EPAZ has competitive pricing, cutting-edge technology, and increasing demand.
One stock that has seen the transition from a highly volatile, high-risk, high-reward play to a long-term growth stock is AeroVironment, Inc. (NASDAQ:AVAV). AeroVironment is an American defense contractor based in Arlington, Virginia that designs and manufactures unmanned aerial vehicles. One of the reasons investors have taken an interest in AVAV is that they have been a key piece of the assistance the United States has provided in support of the Ukrainian war effort.
AeroVironment’s drones’ effectiveness on the battlefield has been demonstrated by the company’s technology, raising the profile of the small defense stock.
AeroVironment actually cut its estimate for full-year earnings per share to a range of $1.13 to $1.33, down from the previous $1.26 to $1.58 range, primarily due to non-cash issues, including accelerated depreciation charges and a greater-than-expected unrealized loss tied to company equity investments.
Though this may worry some, most investors remain interested. AeroVironment’s strong business prospects have been overlooked by investors who are more interested in long-term growth with the company.
In the past year, AeroVironment has demonstrated the quality of its products and its potential for success, transitioning from a higher-risk, higher-reward option among defense stocks to a promising investment opportunity.
The company’s funded backlog of $413.9 million in future business, which grew by 83% year over year, indicates a promising future. With increased munitions spending in Ukraine and rising geopolitical tensions worldwide, AeroVironment is expected to receive a substantial share of the upcoming weapons replenishment and stockpiling expenditures by the United States and its allies.
Joby Aviation, Inc. (NYSE: JOBY) is a California-based company developing all-electric aircraft for commercial passenger service. JOBY is among several companies in a competitive pursuit to introduce what is commonly referred to as “flying cars” into the market. Their product is a compact electric aircraft that has the ability to take off and land vertically, also known as an eVTOL. Although it cannot serve as a replacement for large planes that transport passengers over extended distances, it has the potential to serve as a viable alternative for heavily congested urban roads.
In early February, the company announced they had completed the 2nd of 5 steps toward FAA certification for commercial operations. This marks the first company to reach this milestone and has it set up to meet its goal of commercial operation in 2025.
Though JOBY Q4 results produced a loss, the company’s operational expenses were mitigated by a small amount of revenue related to the DOD contracts the company has acquired. The report’s takeaways are that cash reserves remain healthy at $1.1 billion, and operations plans for 2023 are well within that budget.
JOBY appears to be ahead of the competition in the race to bring an eVTOL to market. Despite a good deal of risk, JOBY is making strides in the correct direction, indicating potential for significant rewards.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) provides mission-critical products, services, and solutions for United States national security priorities. The development of combat drone capability and potential space opportunities being pursued by the Department of Defense (DOD) present promising avenues for KTOS to leverage and potentially benefit from.
KTOS is an appealing investment option as it offers access to tactical unmanned products that exhibit notable potential for growth.
Through mid-March, KTOS has experienced an 8% surge in its share price, largely attributed to its announcement of securing a $49.6 million initial contract with the U.S. Department of Defense for 55 units of Kratos’ BQM-177A Subsonic Aerial Target systems.
However, some investors remain skeptical, as the company’s Valkyrie tactical drone has completed years of testing with potential government customers, yet investors have now been waiting on an order for more than three years. Some are growing impatient.
The success of the Valkyrie tactical drone will be the key factor in determining the future outcome and success of KTOS. If all goes well Kratos estimates a potential $10 billion opportunity pipeline for the Valkyrie Tactical Drone
Razorpitch Inc. is a marketing communications and investor relations firm serving private, pre-IPO, and public companies. RazorPitch specializes in corporate, investor, and stakeholder communications. Our goal is to raise visibility, expand awareness, and increase value. To learn more, visit RazorPitch.com.
Disclaimers: The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, assumptions, objectives, goals, assumptions of future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements, indicating certain actions & quotes; may, could or might occur Understand there is no guarantee past performance is indicative of future results. Investing in micro-cap or growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or due to the speculative nature of the companies profiled. RazorPitch is responsible for the production and distribution of this content. RazorPitch is not operated by a licensed broker, a dealer, or a registered investment advisor. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security.