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Is DPRO Stock a Buy, Hold or Sell After a 180.2% One-Year Surge?

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Key Takeaways

  • Draganfly shares surged 180.2% in a year on strong demand for drones and AI-powered systems.
  • DPRO secured U.S. Department of War drone contracts, boosting defense market credibility.
  • Draganfly trades below industry P/S levels and carries no debt versus peers' higher leverage.

Draganfly’s (DPRO - Free Report) shares have risen 180.2% over the past year, outperforming the Zacks Aerospace-Defense industry’s growth of 7.7%. The company is capitalizing on growing demand for its drone technologies, AI-powered systems, and software platforms across sectors, such as public safety, agriculture, industrial inspection, security, mapping and surveying.
 

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Image Source: Zacks Investment Research

Other defense stocks like AeroVironment, Inc. (AVAV - Free Report) and Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) are gaining momentum from the increasing use of drone-based combat systems and advanced military technologies. Shares of AeroVironment and Kratos Defense have increased 1.2% and 68.9%, respectively, over the past year. 

Considering DPRO’s outperformance relative to its industry, investors may be wondering whether now is a good time to add the stock to their portfolio. Let’s examine the factors that contributed to the share price gain and assess the company’s investment prospects to make a more informed decision.

Factors Acting in Favor of DPRO Stock

Draganfly is gaining momentum from rising demand in the defense industry, as increasing participation in U.S. and allied military initiatives broadens its market reach and supports consistent, high-value revenue streams. Its advanced product portfolio, including long-endurance, heavy-payload drones and AI-enabled swarm capabilities, sets it apart in critical use cases like surveillance, demining and emergency response. 

In May 2026, Draganfly announced that it has been selected by two separate U.S. Department of War units for Flex FPV drone systems. This strengthens the company’s credibility and expands its position in the rapidly growing military drone market. FPV drones have become increasingly important in modern warfare because they are relatively low-cost, rapidly deployable, and highly effective in tactical missions, validating Draganfly’s technology in a high-demand segment.

In May 2026, Draganfly and ACSL partnered to bring NDAA-compliant Japanese drones to the Canadian market. The partnership positions the company to evolve from a pure drone manufacturer into a broader provider of distribution, integration, and ecosystem solutions in the expanding North American market.

Draganfly’s 2026 priorities are centered on scaling and strengthening its core business while positioning for long-term growth. The company aims to ramp up production and delivery capacity to meet rising demand, while building a domestic, NDAA-compliant supply chain using its industry relationships and deep UAV experience. DPRO is also focused on expanding ties with government agencies and top-tier defense contractors through partnerships and integration channels, which can drive larger and more consistent contracts. The company plans to advance its technology capabilities through continued hardware and software development, pursue targeted acquisitions that complement its strategy, and allocate capital prudently to support sustainable growth.

Estimates for DPRO Stock

The Zacks Consensus Estimate for Draganfly’s 2026 earnings per share (EPS) has risen 2.27% over the past 60 days. 
 

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Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AeroVironment’s fiscal 2026 EPS has remained unchanged over the past 60 days. The Zacks Consensus Estimate for Kratos Defense’s 2026 EPS has remained stagnant over the same time frame.  

DPRO’s Earnings Surprise History

The company beat on earnings in two of the trailing four quarters and missed in the other two, delivering an average negative surprise of 16.06%.

 

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Image Source: Zacks Investment Research

DPRO’s Debt Position

Currently, the company’s total debt to capital is nil compared to the industry’s average of 48.64%.

 

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Image Source: Zacks Investment Research

DPRO Stock Trades at a Discount

In terms of valuation, DPRO’s forward 12-month price-to-sales (P/S) is 1.36X, a discount to the industry’s average of 2.49X. This suggests that investors will be paying a lower price than the company's expected sales growth compared with its peer group.

 

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Image Source: Zacks Investment Research

What Should an Investor Do Now?

Draganfly is strengthening its position in the defense drone market through expanding military partnerships, advanced drone technologies, and growing demand for tactical and surveillance solutions. The company is also focused on scaling operations, enhancing its supply chain and technology capabilities, and expanding strategic partnerships to support long-term growth.

Given its improving earnings estimates, attractive valuation and a debt-free balance sheet, investors might consider adding DPRO stock to their portfolios right now. DPRO has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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