Tag: drones

Top Drone Stocks

by Fred Fuld III

“Total global shipments to reach 2.4 million in 2023 – increasing at a 66.8% compound annual growth rate. The drone services market size is expected to grow to $63.6 billion by 2025.” ~ Source: Insider Intelligence, April 15, 2022

The drone industry has tremendous potential for growth in the coming years, and is expected to become an increasingly important part of various businesses and industries. Here are a few areas where the drone industry is likely to see significant growth in the future:

  1. Aerial Photography and Videography: Drones are being increasingly used for aerial photography and videography, especially in the real estate, advertising, and film industries. With advancements in technology, drones are becoming more capable of capturing high-quality footage and are becoming more affordable, making them accessible to a wider range of businesses and consumers.
  2. Agriculture: Drones are being used in the agricultural industry for a variety of purposes, including crop monitoring, yield analysis, and soil mapping. With the help of drones, farmers can better manage their crops and optimize their yields, which can lead to increased efficiency and profitability.
  3. Infrastructure Inspection: Drones can be used to inspect infrastructure such as bridges, power lines, and pipelines, which can be dangerous and difficult for humans to access. With the help of drones, inspections can be carried out more quickly, safely, and cost-effectively, which can lead to improved maintenance and safety.
  4. Delivery Services: Drones can be used for delivery services, especially in areas where ground transportation is difficult or expensive. With the development of autonomous drone technology, it may become possible to deliver packages and other items more quickly and efficiently than traditional delivery methods.
  5. Search and Rescue: Drones can be used in search and rescue operations to locate missing persons or to survey areas that are difficult to access. With the help of drones, rescue teams can more quickly and accurately locate and assess the situation, which can lead to more successful outcomes.

Overall, the drone industry has significant potential for growth in a variety of areas, and is likely to become an increasingly important part of many businesses and industries in the future.

If you are looking for pure plays or semi-pure plays in the drone industry, there are a few to choose from:

•AeroVironment (AVAV)

•Kratos Defense & Security Solutions (KTOS)

•EHang Holdings Ltd. (EH)

•Ambarella (AMBA)

•Joby Aviation Inc. (JOBY)

AeroVironment produces unmanned aircraft systems selling largely to the U.S. Government and international governments.

The company has had consistent and steady revenues, and sports a forward price to earnings ratio of 37. Long term annual estimated earnings growth for the next five years is 18.2%.

Kratos provides unmanned aerial systems, and unmanned ground and seaborne systems to the U.S. Department of Defense.

The stock trades at 26 time forward earnings and quarterly revenue growth year over year is 7.8%. Current earnings are negative.

Ambarella would be considered more of a semi-play as it makes video chips for high quality drones. The stock has a forward P/E ratio of 142. The company is debt free with $5.12 in cash per share.

Joby Aviation is developing an aerial ride sharing service. The market cap is $2.6 billion and earnings are negative.

EHang Holdings produces autonomous aerial vehicles in China. It is extremely low cap at $660 million.

Possibly one of these stocks will fly high with the drones.

Disclosure: Author didn’t own any of the above at the time the article was written.

Will Drone Stocks Get Higher?

Unmanned aerial vehicles, better known as drones, are everywhere.

by Fred Fuld III

Unmanned aerial vehicles, better known as drones, are everywhere.

They are used in all types of industries.

For example, drones are being used by the following types of businesses and organizations:
Construction
Agriculture
Insurance Claims
Offshore Oil & Gas
Police
Fire
Coast Guard
Journalism
Customs and Border Protection
Real Estate
Utilities
Pipelines
Mining
Clean Energy
Cinematography

According to InsiderIntelligence, “The drone services market size is expected to grow to $63.6 billion by 2025.”

A few large corporations are involved in drone development and production as a small part of their business, but there are a few pure plays.

Many of these stocks have taken a beating over the last year or so, so maybe there are some bargains waiting to take off.

AeroVironment (AVAV) is an Arlington, Virginia based company which creates and manufactures robotic systems with a large unmanned aircraft systems division. Their market is primarily governments so their cash flow is relatively steady.

The stock has a forward price to earnings ratio of 38 and has an earnings per share growth estimate of 63% for next year.

Kratos Defense & Security Solutions (KTOS), based in San Diego, California, provides unmanned aerial systems to the U. S. Government.

The stock has a forward P/E ratio of 24, and has an earnings per share growth estimate of 60% for next year.

Ambarella (AMBA) is a video semiconductor company which makes cameras for drones and for many other purposes. The stock has a nosebleed forward P/E of 131.

Although earnings per share for this year were up58%, earnings for next year are anticipated to be down 34%

EHang Holdings Ltd. (EH) is a China based company which produces autonomous aerial vehicles. Earnings were negative for the current year and are expected to be negative next year.

Joby Aviation Inc. (JOBY) is  building an electric vertical takeoff and landing aircraft optimized to deliver air transportation. It has had negative earnings for last year with the same expected for next year.

Maybe one of these stocks can help your portfolio rise.

Disclosure: Author didn’t own any of the above at the time the article was written.

Will Drone Stocks Start Flying Higher?

The number of pure play drone stocks is shrinking, since Lockheed Martin (LMT) agreed to buy Aerojet Rocketdyne (AJRD). There aren’t many other drone stocks to choose from.

Drones are a technological advancement that have been sometimes been making headlines for all the wrong reasons. They have been spotted flying too close to airports, and they have been caught smuggling drugs into prisons. They have even been used to spy on neighbors that are sun bathing in the nude in their backyard. When used in the right wy, drones are a great form of technology. They are helping businesses to make great strides and stay ahead of the competition, and have significant usage by the military.

Drones may soon be used by businesses that provide goods to customers. They will be able to deliver customers’ packages right to their very own doorstep on a regular basis, and on a large scale. This will greatly change the world of home deliveries. No longer will customers have to go through the hassle of picking their goods up from a store. This would bee a great advantage during the pandemic.

This form of technology is also being used by oil and gas companies. It allows companies to do routine inspections. The drone will also be able to do surveying for a variety of other businesses. All in all, these will work to make the lives of businesses easier.

Of course, drones are even available for recreational use. There are several rules that a person must abide by, however, such as not be flown in close proximity to an airport. Plus they must be registered.

So how does an investor take a flyer on a drone stock that won’t crash and burn? One of the purest plays in the drone industry is AeroVironment (AVAV), which produced the Pointer drone in 1987, considered to be the first small unmanned aircraft system, also referred to as a UAS, unmanned aerial vehicle, and UAV, for military use. The company now makes severals UASs, including the Puma, Raven, Wasp, and Shrike, for business and governmental use.

AeroVironment is currently trades at 110 times trailing earnings, and 53 times forward earnings. In spite of the high P/E ratio, the company does have a couple things going for it. First of all, it has no long term debt. Second, the company is sitting on $302.6 million  in cash, amounting to $13.41 cash per share. No wonder the stock is up over 12% today.

AgEagle Aerial Systems (UAVS) is another drone company that markets to the agricultural industry. It is currently generating negative earnings, but it debt free.The stock is up over 22% today.

Another way to play the drone market, although in a small way, is Amazon (AMZN),  which is involved in drones two different ways. It is developing Amazon Prime Air in several countries, which will provide 30 minute delivery services using small drones. In addition, Amazon actually sells drones to the consumer. Do you think if I order a drone from them, that they would deliver it by drone?

Keep an eye on this industry, because there is great potential for drone stocks to go higher and higher.

Disclosure: Author owns AMZN.

 

Top Performing Stock Motifs Up over 30% (like mini ETFs)

by Fred Fuld III

Motifs are similar to Exchange Traded Funds, but any investor can create them. An investor can choose the stocks they want for the Motif portfolio, or even better, the investor can invest in the Motifs created by others for a low commission rate. I have created many motifs that are available for anyone to invest in, a few of which are up over 100% since inception.

Here are some of the motifs I created and the returns since inception (created about a couple years ago). You will notice that some are up over 100%.

Anti-Crime Stocks +37.0%

Liquid Biopsy Stocks +227.9%

Stem Cell Stocks +344.0%

Firearms Stocks +12.9%

Gisele Bundchen Stocks +41.1%

Water Desalination +36.7%

Drone Stocks +53.3%

Cuba Stocks +23.1%

Puerto Rico Stocks +88.3% (in spite of the hurricane)

Marijuana Cannabis Stocks +81.3%

Horse Race Stocks +74.1%

Cosmetic Surgery Stocks +168.8%

Beer Stocks +29.2%

Wine and Liquor Stocks +22.5%

Virtual Reality Stocks Over $5  +25.5%

Virtual & Augmented Reality Stocks +56.3%%

If you are searching for specific industries to invest in, Motifs might be the way to go.

My Top Performing Stock Motifs: Some Up Over 100%

by Fred Fuld III

Motifs are like Exchange Traded Funds, except they can be created by anyone. Investors gets to choose which stocks they want to put in the portfolio, or better yet, they can invest in the Motifs created by others for a low commission. I created several motifs that are available for anyone to invest in, a few of which are up over 100% since inception.

Here are some of the motifs I created and the returns since inception (created less than two years ago):

Bitcoin, Blockchain, and Cryptocurrency Stocks +15.3%

Anti-Crime Stocks +38.8%

Liquid Biopsy Stocks +90.6% (created just a little over a year ago)

Stem Cell Stocks +100.5% (up 48.3% just in the last 12 months)

Firearms Stocks +26.6%

Gisele Bundchen Stocks +22.6%

Water Desalination +13.6%

Drone Stocks +53.9%

Cuba Stocks +26.1%

Puerto Rico Stocks +49.4% (one-year return in spite of the hurricane)

Marijuana Cannabis Stocks +82.5%

Horse Race Stocks +188.7% (top performing)

Cosmetic Surgery Stocks +141.0% (second best performing, up 56.1% just in the last 12months)

Beer Stocks +26.5%

Wine and Liquor Stocks +22.4%

Virtual Reality Stocks Over $5  +79.8%

Virtual & Augmented Reality Stocks +74.0%%

So if you are looking for a targeted way of investing, Motifs may be the way to go.

The Stock Motifs that are Up Over 20%

If you are not familiar with motifs, they are similar to Exchange Traded Funds, except they are created by investors. You get to pick and choose which stocks you want to put in the portfolio. You can invest in the motif and others can invest in your motifs also. I created several motifs that are available for anyone to invest in, many of which are up over 20%.

Here are some of the motifs I created last year and the returns to date:

Liquid Biopsy Stocks +13.1%

Gisele Bundchen Stocks +15%

Drone Stocks +37%

Cuba Stocks +31.5%

Marijuana Cannabis Stocks +21%

Horse Race Stocks +129.7%

Beer Stocks +12.9%

Wine and Liquor Stocks +20.5%

Virtual Reality Stocks Over $5  +48.7%

Virtual & Augmented Reality Stocks +38.4%

By the way, if you are looking for a bitcoin motif, I just created one a couple days ago and it is already up 1.1%.

The Latest Hot Industries According to Stock Filings

If you have ever wondered what the interest is of companies in the hottest industries, such as drones or robots, there is a way to find this information out.The Securities and Exchange Commission maintains a database of all the forms filed by publicly traded companies for the past several years.

Here are the results for the number of forms that were filed with the SEC during the last four years that mentioned any of the following terms connected to recent popular industries.

bitcoin 1588
drones 2334
robots 8000+
robotics 8000+
artificial intelligence 1977
CRISPR 791
marijuana 5800
cannabis 8000+
3D printing 1820
virtual reality 1154
augmented reality 1216

By the way, 8000+ means over 8,000. So it could be 9,000 or 90,000.

Stock Motifs That Are Up Over 20%

If you have never checked out a stock motif, maybe it’s time you did. A motif is similar to an exchange traded fund or ETF that is created by an individual investor. The motif may contain five stocks or fifty stocks or any number of stocks, and are usually concentrated around a particular industry  or investment idea.

These motifs can be bought and sold, just like any other ETF, with a commission of only $9.95. Several of these motifs have significantly outperformed the S&P 500.

For example, I created a motif called Horse Race Stocks. This is a motif that contains stocks involved in the hope racing arena. It is interesting to note that this motif is up over 50% since its inception, which was less than a year ago. I created the motif on July 21, 2016 and as of today, the motif has increased by 52.5%. Not a bad return for less than ten months.

Horse Race Stocks

My Cuba Stocks motif which holds stocks of companies that should benefit from the opening of relations with Cuba is up 24.2% since the end of July last year.

Cuba Stocks

The Marijuana Cannabis Stocks motif is my most popular. The stocks in the portfolio are self-explanatory, and with legalization of medical marijuana and recreational marijuana, what motif has spiked by 25% in less than a year.

Marijuana Stocks

Even a couple other motifs that haven’t performed as well, still have double digit returns, such as Drone Stocks, with a boost of 14%, and Virtual & Augmented Reality Stocks, up 17.9%.

All of the stocks in all of the above motifs sell for at least $5 a share. Also, if dividends are paid by any of the stocks, your account is credited with the payments.