Investors interested in taking advantage of the expanding market for drones and other related technologies may find drone cheap stocks an attractive investment opportunity.
Which ones, therefore, should you keep in mind?
Investment Opportunities in Drone Technology
View our recommended penny drone stocks for 2022 investing.
Parrot SA (OTC: PAOTF)
Parrot SA is a French corporation that has successfully cornered the European drone industry after experiencing failure in many previous technology-related ventures. It sells a wide variety of drones, including consumer favorites like the Parrot Bebop and the, smaller, more affordable consumer drones, and larger professional drones with high-definition cameras.
The company is among the few that have released open-source platforms for its drones, making it easier for small firms to adapt the technology to their own requirements.
Meanwhile, Parrot’s drone platforms have access to scalable and manageable fleet operations thanks to a collaboration with Measure.
Parrot has also invested in linked garden platforms, cloud solutions, and automobile kits, all of which it is considering integrating with drones to build a high-demand environment.
One of the most excellent drone stocks for investors, given its market cap of over $150m, diverse product offering, and large contracts.
Draganfly Inc. (NASDAQ: DPRO)
Despite having a relatively modest market valuation of $31 million, Draganfly’s sales increased by over 30% YOY in Q1 of 2022.
In addition, the Canadian IT company offers a diversified product line.
In addition to selling drones, the company also offers tailored technical solutions for uses, including disaster response, agricultural monitoring, data collecting for military drones, and inspection of essential infrastructure.
As of late, it’s been working with NuGen Medical Devices to supply insulin and needle-free injectable devices to Ukraine by drone.
If the firm continues to land high-profile contracts, its stock price might skyrocket, making it one of the greatest drone stocks on our list.
Plymouth Rock Technologies (OTC: PLRTF)
Plymouth Rock Technologies, with a market size of under $6 million, is yet another potential penny stock investment.
The company has achieved success in the petrochemical industry with its drone technology, a sector that could grow at a CAGR of 65.4% between 2022 and 2026.
Plymouth Rock, who manufactured the sophisticated drones used by Aardvark to keep an eye on oil and gas pipelines, also announced a repeat order from the company during this time.
In addition, it signed a contract to provide BVLOS unmanned aircraft to the Norfolk Constabulary in the United Kingdom.
Plymouth Rock Technologies and its stockholders may be in for a great year thanks to these pending orders and contracts, which might lead to a rise in the stock price.
AgEagle Aerial Systems (NYSE: UAVS)
Stocks in the drone industry should keep an eye on AgEagle Aerial Systems Inc. of Wichita, which offers comprehensive drone solutions across various sectors.
The government alone spent around $10B on UAVs in 2019, and the agricultural sector’s drone industry is expected to expand by 7% between 2022 and 2027.
The corporation posted a deficit for the fiscal year ending in 2021 and saw its profit margin fall to 44 percent from 45% the year before.
Still, thanks in large part to the popularity of its drones, the company’s overall sales increased by a mind-boggling 659%.
AgEagle Aerial Systems Inc. is a leading drone stock to examine because of its cutting-edge technology, high consumer demand, and rapid year-over-year expansion.
Archer Aviation, Inc. (NYSE: ACHR)
Polaris Market Research predicts that the worldwide market for passenger drones will increase at a CAGR of 29.5% between 2018 and 2026.
Test flights have been conducted by Archer and its rivals, including Joby Aviation, and in 2021, Archer was granted airworthiness certification by the FAA.
United Airlines has placed an order with Archer worth over $1 billion for 200 eVTOL (electric vertical takeoff and landing) aircraft. It is also working on a four-seater version, which it plans to introduce in 2024.
This is an outstanding penny stock today because of the high passenger drone demand caused by the desire to access isolated regions more easily.
Velodyne Lidar (NASDAQ: VLDR) (NASDAQ: VLDR)
Velodyne Lidar, based in Silicon Valley, does not create drones. Instead, it manufactures light detection and ranging (LiDAR) devices, which are essential to autonomous systems since they allow for creating 3D maps of their environments.
As the need for robots and automation develops, so does this product’s value, which is predicted to be worth $2.90B by 2027 from under $800m in 2019.
Lidar also enables Velodyne to play in other quickly rising tech fields, most notably driverless cars.
Even though there are no completely autonomous automobiles or trucks on the road at the moment, the market for related advances has been massive.
Purchasing Velodyne is an investment in not just drone technology but also other notable and trendy forms of technology, such as autonomous automobiles.
Vislink Technologies (NASDAQ: VISL)
In the same vein as Velodyne, Vislink Technologies does not engage in developing drone systems.
Since it manufactures the platform on which drones may receive and download high-quality live data and video, the company still qualifies as a drone penny stock.
Because of this, drones may be used for a variety of purposes, including but not limited to surveillance modeling, event production, news gathering activities, and emergency response.
A year-over-year increase in sales and a significant increase in gross profit margins from December 2020 to December 2021 let the firm, despite its modest market capitalization, post a profitable December 2021.
Investing in Vislink might be an excellent idea due to the company’s rising profits and established technology, which has several commercial and industrial uses.
When it comes to drones, is it wise to invest in penny stocks?
Investors wishing to take a stake in a rapidly expanding industry may want to consider drone penny stocks.
After reaching a billion dollars in sales two years ago, Goldman Sachs predicts that consumer drones in the US might approach $100B in 2022.
Increasing numbers of militaries, governments, and private firms are investing in unmanned aircraft. Meanwhile, applications range from security measures to space exploration, aerial mapping, and crisis response.
Companies like FedEx, Walmart, and Amazon are investing substantially in drone technology because they see a future in using them to transport perishable goods and parcels.
Many obstacles are in the way of drone technology, including problems with the Federal Aviation Administration’s regulations. Furthermore, there are still shares trading as penny stocks, which are very hazardous and prone to wild price swings.
There is development potential, but investors stand to lose if they aren’t careful.
Where Can I Invest in Drone Penny Stocks?
Webull and Robinhood, two online brokers with no account minimums or commission costs, are among the best locations to purchase tiny drone stocks.
There are a few options for buying shares in drone companies listed on the NASDAQ and the New York Stock Exchange, and those markets are accessible via several platforms.
Suppose you want to minimize losses and quickly ride the growth.
In that case, you should still research these penny stocks by looking closely at the company’s financial statements, competitive landscape, products and services, and management team.
Top Penny Stocks in the Drone Industry — Some Closing Thoughts
Drone cheap stocks are a great option for anyone wishing to invest in the rapidly expanding drone market.
A little research will reveal several outstanding firms with long-term promises, and you can purchase these stocks before they boom.
However, it would be best to always exercise caution when dealing with penny stocks because of their high volatility and risk.