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Top Drone Technology Stocks to Keep an Eye on For Robust Returns
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An updated edition of the April 28, 2025 article.
Drone technology has rapidly progressed into a transformative tool across a wide range of commercial and industrial sectors. Drones or unmanned aerial vehicles (UAVs) are reshaping the way businesses collect data, conduct surveillance, and carry out deliveries in various industries like agriculture, construction and mining.
Retail giants like Walmart and Amazon (AMZN - Free Report) are pushing the boundaries of drone deployment in logistics. Amazon uses drone delivery to deliver one package (up to five pounds) in less than an hour during daylight hours. Amazon has also highlighted that its drone fleet is totally electric and does not produce emissions during flight. Meanwhile, public safety and disaster response sectors are increasingly using drones for surveillance and search-and-rescue missions.
Cutting-edge technological advancements are playing a pivotal role in accelerating drone adoption. AI and automation are driving the next phase of drone tech development. The embedding of AI has made modern drones faster and more versatile than ever. AI incorporation is driving the autonomous navigation functionality of drones, enabling them to autonomously plan their flight paths based on real-time data, such as environmental terrain. The integration of 5G and advanced Wi-Fi technology has further improved real-time data transmission, expanding commercial applications.
The drone technology industry is a fast-growing industry, with the global drone tech market is expected to witness a CAGR of 14.3% from 2025 to 2030, according to a report from Grand View Research, whereas the commercial drone market is expected to witness a CAGR of 20.8% from 2025 to 2032, per the Fortune Business Insights report. Higher adoption of small UAVs for a variety of commercial applications is expected to drive growth for the commercial drone market, according to the Fortune Business Insights report.
Increasing usage of drone swarm technology is another eye-catching development. Drone swarms are a synchronized operation of numerous autonomous drones working in tandem and using AI and real-time communication to achieve common objectives. Apart from military operations, the usage of drone swarms is being extensively explored for tasks like large-area surveillance and search-and-rescue.
Explore 30 cutting-edge investment themes with Zacks Thematic Screens and uncover your next big opportunity.
3 Drone Tech Stocks to Keep an Eye on
Red Cat Holdings specializes in robotic hardware-software integration for applications for both military and commercial uses. Teal Drones and FlightWave Aerospace are two of its wholly-owned affiliates. The FlightWave Aerospace acquisition (concluded in September 2024) augmented RCAT’s portfolio by adding Edge 130 drones. Edge 130 is FlightWave’s Blue UAS-approved military-grade tri-copter. Its portfolio also includes TRICHON, a fixed-wing VTOL and FANG, the industry's first line of NDAA-compliant FPV drones. FANG is augmented for military operations with “precision strike” capabilities.
The collaboration with Palantir (PLTR - Free Report) also bodes well for RCAT. It is working with Palantir to integrate PLTR’s Visual Navigation software into its Black Widow drones. Leveraging Palantir’s Visual Navigation will improve autonomous sUAS operations for modern warfare in GPS-contested environments. It is marketing its Black Widow and Edge 130 drones to various new international markets, such as the Asia Pacific, the Middle East, and Latin America. RCAT is also using Palantir’s Warp Speed manufacturing operating system to boost its production and streamline its supply chain, leading to cost efficiency and margin expansion.
RCAT is increasing production of Black Widow amid higher demand from U.S. and international customers. RCAT recently collaborated with ESAero to support critical AS9100 manufacturing capacity for the Black Widow sUAS and its subsystems. This Zacks Rank #3 (Hold) company is also ramping up its FlightWave manufacturing facility in California to produce more than 150 drones per month. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AeroVironment is a well-known name in the drone technology space. The company has been developing uncrewed aircraft and ground robot systems and loitering munitions systems (LMS) and related services for the U.S. Department of Defense (including Army, Marine Corps, Special Operations Command, Air Force and Navy), other federal agencies and international allied governments. AVAV applies advanced technological innovations, seamlessly integrating AI and cutting-edge computer vision into agile, effective solutions.
AVAV remains focused on disciplined investments, production capacity expansion, product innovation and acquisitions to drive market share. It completed the acquisition of BlueHalo in May 2025. The buyout has added space technologies, counter-UAS, electronic warfare and cyber solutions to the portfolio. In May, AVAV won a contract with the Dutch Ministry of Defence (MoD) to overhaul the country’s Puma 3 AE UAS fleet with cutting-edge capabilities. Also, MoD is adding Puma LE UAS to expand its UAS portfolio.
This Zacks Rank #3 company is expanding its switchblade production facility in Utah to be more than five times its present capacity and is set to double production throughput. These efforts are expected to drive over $1 billion in LMS annual revenue by fiscal 2027. This facility is expected to come online towards the end of 2025.
Ondas Holdings designs, develops, and markets commercial drone solutions for critical industrial and government applications through its Ondas Autonomous Systems (OAS) business division. This division includes Airobotics, American Robotics, Iron Drone, and Ardenna. Airobotics is the developer of Optimus, an autonomous drone system, while Ardenna specializes in ML and AI software and image processing for drone-based aerial review of railroad assets. Iron Drone Raider systems is an autonomous counter-drone solution where an intercepting drone guided by radar is used to counteract a drone attack using a parachute and ballistic net to lower it to the ground.
The increasing demand for drones globally bodes well for its Autonomous Drone platforms. On the last earnings call, management noted that it has “strong visibility” for a number of additional orders for both Iron Drone and Optimus.
ONDS, like most of the other drone tech players, is also expanding its footprint with new defense and homeland security customers across Europe, the Middle East, and the United States. It also secured its biggest single purchase order for Optimus Systems worth $14.3 million from a key defense customer in June 2025. With this order, ONDS’ current revenue backlog stands at $28.7 million (net of VAT impacts on orders) compared with $10 million at the start of 2025.
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Top Drone Technology Stocks to Keep an Eye on For Robust Returns
An updated edition of the April 28, 2025 article.
Drone technology has rapidly progressed into a transformative tool across a wide range of commercial and industrial sectors. Drones or unmanned aerial vehicles (UAVs) are reshaping the way businesses collect data, conduct surveillance, and carry out deliveries in various industries like agriculture, construction and mining.
Retail giants like Walmart and Amazon (AMZN - Free Report) are pushing the boundaries of drone deployment in logistics. Amazon uses drone delivery to deliver one package (up to five pounds) in less than an hour during daylight hours. Amazon has also highlighted that its drone fleet is totally electric and does not produce emissions during flight. Meanwhile, public safety and disaster response sectors are increasingly using drones for surveillance and search-and-rescue missions.
Cutting-edge technological advancements are playing a pivotal role in accelerating drone adoption. AI and automation are driving the next phase of drone tech development. The embedding of AI has made modern drones faster and more versatile than ever. AI incorporation is driving the autonomous navigation functionality of drones, enabling them to autonomously plan their flight paths based on real-time data, such as environmental terrain. The integration of 5G and advanced Wi-Fi technology has further improved real-time data transmission, expanding commercial applications.
The drone technology industry is a fast-growing industry, with the global drone tech market is expected to witness a CAGR of 14.3% from 2025 to 2030, according to a report from Grand View Research, whereas the commercial drone market is expected to witness a CAGR of 20.8% from 2025 to 2032, per the Fortune Business Insights report. Higher adoption of small UAVs for a variety of commercial applications is expected to drive growth for the commercial drone market, according to the Fortune Business Insights report.
Increasing usage of drone swarm technology is another eye-catching development. Drone swarms are a synchronized operation of numerous autonomous drones working in tandem and using AI and real-time communication to achieve common objectives. Apart from military operations, the usage of drone swarms is being extensively explored for tasks like large-area surveillance and search-and-rescue.
If you're looking to capitalize on this trend, our Drone Technology Screen makes it easy to identify high-potential stocks such as AeroVironment (AVAV - Free Report) , Red Cat Holdings, Inc. (RCAT - Free Report) , and Ondas Holdings (ONDS - Free Report) .
Explore 30 cutting-edge investment themes with Zacks Thematic Screens and uncover your next big opportunity.
3 Drone Tech Stocks to Keep an Eye on
Red Cat Holdings specializes in robotic hardware-software integration for applications for both military and commercial uses. Teal Drones and FlightWave Aerospace are two of its wholly-owned affiliates. The FlightWave Aerospace acquisition (concluded in September 2024) augmented RCAT’s portfolio by adding Edge 130 drones. Edge 130 is FlightWave’s Blue UAS-approved military-grade tri-copter. Its portfolio also includes TRICHON, a fixed-wing VTOL and FANG, the industry's first line of NDAA-compliant FPV drones. FANG is augmented for military operations with “precision strike” capabilities.
The collaboration with Palantir (PLTR - Free Report) also bodes well for RCAT. It is working with Palantir to integrate PLTR’s Visual Navigation software into its Black Widow drones. Leveraging Palantir’s Visual Navigation will improve autonomous sUAS operations for modern warfare in GPS-contested environments. It is marketing its Black Widow and Edge 130 drones to various new international markets, such as the Asia Pacific, the Middle East, and Latin America. RCAT is also using Palantir’s Warp Speed manufacturing operating system to boost its production and streamline its supply chain, leading to cost efficiency and margin expansion.
RCAT is increasing production of Black Widow amid higher demand from U.S. and international customers. RCAT recently collaborated with ESAero to support critical AS9100 manufacturing capacity for the Black Widow sUAS and its subsystems. This Zacks Rank #3 (Hold) company is also ramping up its FlightWave manufacturing facility in California to produce more than 150 drones per month. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AeroVironment is a well-known name in the drone technology space. The company has been developing uncrewed aircraft and ground robot systems and loitering munitions systems (LMS) and related services for the U.S. Department of Defense (including Army, Marine Corps, Special Operations Command, Air Force and Navy), other federal agencies and international allied governments. AVAV applies advanced technological innovations, seamlessly integrating AI and cutting-edge computer vision into agile, effective solutions.
AVAV remains focused on disciplined investments, production capacity expansion, product innovation and acquisitions to drive market share. It completed the acquisition of BlueHalo in May 2025. The buyout has added space technologies, counter-UAS, electronic warfare and cyber solutions to the portfolio. In May, AVAV won a contract with the Dutch Ministry of Defence (MoD) to overhaul the country’s Puma 3 AE UAS fleet with cutting-edge capabilities. Also, MoD is adding Puma LE UAS to expand its UAS portfolio.
This Zacks Rank #3 company is expanding its switchblade production facility in Utah to be more than five times its present capacity and is set to double production throughput. These efforts are expected to drive over $1 billion in LMS annual revenue by fiscal 2027. This facility is expected to come online towards the end of 2025.
Ondas Holdings designs, develops, and markets commercial drone solutions for critical industrial and government applications through its Ondas Autonomous Systems (OAS) business division. This division includes Airobotics, American Robotics, Iron Drone, and Ardenna. Airobotics is the developer of Optimus, an autonomous drone system, while Ardenna specializes in ML and AI software and image processing for drone-based aerial review of railroad assets. Iron Drone Raider systems is an autonomous counter-drone solution where an intercepting drone guided by radar is used to counteract a drone attack using a parachute and ballistic net to lower it to the ground.
The increasing demand for drones globally bodes well for its Autonomous Drone platforms. On the last earnings call, management noted that it has “strong visibility” for a number of additional orders for both Iron Drone and Optimus.
ONDS, like most of the other drone tech players, is also expanding its footprint with new defense and homeland security customers across Europe, the Middle East, and the United States. It also secured its biggest single purchase order for Optimus Systems worth $14.3 million from a key defense customer in June 2025. With this order, ONDS’ current revenue backlog stands at $28.7 million (net of VAT impacts on orders) compared with $10 million at the start of 2025.