Two of the hottest investments in the market right now are robotic and drone investments. If you’re interested in robotics and drone stocks, today’s article presents some of the best robotic and drone companies to invest in.
In this article:
- Google (GOOGL)
- AeroVironment Inc. (AVAV)
- Northrop Grunman Corp. (NOC)
- Ambarella (AMBA)
- STMicroelectronics (STM)
- IXYS Corp. (IXYS)
- GoPro (GPRO)
- InvenSense, Inc. (INVN)
- Sony Corp. ADR (SNE)
- Amazon (AMZN)
- Heico Corp. (HEI)
- Boeing Co. (BA)
- iRobot (IRBT)
- Rewalk Robotics (RWLK)
- Kratos Defense and Security Solutions, Inc. (KTOS)
- FANUC (FANUY)
- Cognex (CGNX)
- Drone Delivery Canada (TAKOF)
- Medtronic (MDT)
- KUKA (KUKAF)
- Drone Aviation Corp (DRNE)
- Rockwell Automation (ROK)
- Teradyne (TER)
23 Best Robotics and Drone Stocks Investors Might Want to Check Out
1. Google (GOOGL)
At the forefront of the robotics and drone industry is the Internet titan Google. While investing in this company doesn’t offer full exposure to a drone manufacturer, Google has recently acquired a number of robotics companies.
Given its track record in the AI and tech industry, Google’s drone companies may generate good profits once the drone industry takes off.
The Franklin Society states that acquiring GOOGL may be an effective indirect-buy strategy into the industry.
2. AeroVironment Inc. (AVAV)
AVAV drone company stocks are a direct investment since they offer Unmanned Aerial Vehicle (UAV) units to both civilian and military buyers.
Unmanned Aerial Vehicle (UAV) Definition: This is another term for drones, which is an aircraft without an onboard pilot. The size of a UAV can range anywhere from as small as your palm to as big as a house.
The company focuses on improving its drone investments for both investors and consumers. In fact, 90% of the company’s revenue comes from selling UAV units.
The Franklin Society advises that the volatility in their stock prices is normal since the industry is relatively new. They say investors should keep a close watch on market trends if they want to maximize the potential returns of these types of drone tech stocks.
3. Northrop Grunman Corp. (NOC)
Perhaps one of the top drone stocks in the military division is the NOC UAV of the North Grunman Corporation. It paved the way for other military drone businesses when it first entered the industry.
In just a decade, the NOC UAV division was bringing in around 50% of the entire company’s revenue. Also, investors looking for high-performing drone manufacturing stocks will be happy to know that NOC UAV had more than $17 billion worth of drone orders in the past year.
This commendable performance definitely secures it a spot in this year’s list of the best drone stocks to buy.
4. Ambarella (AMBA)
If you want to be a shareholder in the video system and robotics industry, then you might want to consider investing in the drone stocks of AMBA.
They specialize in creating state-of-the-art mobile video systems and HD components. One of their most popular innovations is the GoPro camera’s unique image-processing feature.
This might be the perfect drone company stock for avid drone and video enthusiasts who want to support the company’s mission to further the industry. Remember: it may be beneficial to stick to drone manufacturer stocks you believe in.
5. STMicroelectronics (STM)
STM does not directly manufacture drones, but rather the components that robotics companies need to create high-functioning UAV units. They’re a Swiss company that creates 3D printing chips and other drone parts.
If you want to invest in drones but can’t trust a single drone manufacturer stock, then you might want to consider STM. As long as drone manufacturers exist, the need for their services won’t decline.
6. IXYS Corp. (IXYS)
The company is responsible for creating semiconductors that many drone manufacturers use in their UAV units. As the number of drone manufacturers increases, IXYS continues to supply the parts these companies need.
Semiconductor Definition: Any solid substance that provides conductivity between an insulator and most types of metal. These are vital parts of robotic items such as drones.
The Franklin Society advises it might be one of the best drone stocks to invest in since they cater to various drone manufacturers. Their business will likely only improve as 2019 brings in a higher demand for UAV unit components.
7. GoPro (GPRO)
GoPro is a world-renowned mobile camera manufacturer. Their unique camera feature appeals to vloggers, travelers, and other people who want to document their adventures.
Recently, GoPro decided to venture into the drone industry by creating UAV units and drones for various retail end-users.
The Franklin Society states that based on GoPro’s performance in selling their unique camera devices, their drones stock may potentially yield good income given enough time.
8. InvenSense, Inc. (INVN)
When looking for the best drone company to invest in, The Franklin Society advises that you cannot ignore drone component-manufacturing brands such as INVN. They create gyroscopes for an array of drone systems.
Since INVN provides essential, universal UAV components, the demand for their goods might not decline so long as the drone industry is alive. Plus, the sales of other UAV manufactures does not affect them.
The performance of their drone stocks relies on how many gyro components they sell regularly.
9. Sony Corp. ADR (SNE)
SNE is primarily in the business of manufacturing cameras for retail sales. However, they recently started to venture into drone manufacturing.
They use their own line of parts and services to create UAV units primarily sold to civilians. With an impressive 12% annual revenue growth rate, it’s faring well against other drone manufacturers’ stock shares.
10. Amazon (AMZN)
If you want to help take online shopping to the next level, then you might want to invest in Amazon.
Amazon is a global titan that stands at the top of e-commerce. It strives to make a better online shopping community for both buyers and sellers through innovation.
In 2013, Amazon expressed its desire to create a UAV unit that delivers your package in minutes. Amazon called this the Octocopter.
Sadly, the Octocopter is yet to debut in the world of e-commerce. But if you want to speed up the process, then you should consider buying into the Amazon drone industry.
11. Heico Corp. (HEI)
If you’re looking for robotics and drone stocks to buy to diversify your assets, then you may consider HEI.
Its primary source of revenue is manufacturing aircraft and jet engine components. Only recently did they begin to venture into the drone industry—specifically in 2017 when they acquired AeroAntenna Technology and Interface Displays & Controls.
It may be relatively new, but its annual revenue growth rate of 110% is nothing to laugh about.
HEI currently trades at $85 on the New York Stock Exchange. If it continues to thrive, its stock may yield high income for its investors.
12. Boeing Co. (BA)
The airplane company is one of the companies that comprise the Dow Jones Industrial index, which makes it one of the biggest companies in the world. With a market cap of over $190 billion, it’s highly unlikely to be considered as a growth stock.
However, its Boeing Defense Space and Security division is highly involved with the United States government as a defense contractor. In particular, it’s involved with helping the U.S. government develop and produce unmanned military aircraft and weapons (i.e. military drones).
U.S. government spending on these types of vehicles and weapons continues to increase significantly every year. Because of its close involvement with the U.S. government on this matter, Boeing can continue benefiting from such spending increases.
It also helps that Boeing’s average dividend yield is superior to its industry. Its five-year average was 2.43% vis-a-vis the sector’s 1.56%.
Dividend Yield Definition: This measures the size of annual dividends of a stock compared to its current market price. It’s calculated by dividing the annual dividends per share of stock by the current market price.
13. iRobot (IRBT)
This $3.39 billion market cap robotics company designs and makes robots for the consumer market and has generated over $1 billion in sales in 2018. Its product lineup includes the famous floor-vacuuming robot named Roomba.
14. Rewalk Robotics (RWLK)
This $19.35 million robotics company specializes in conceptualizing, creating, and selling exoskeletons. These are robotic devices that help people with mobility impairments to stand up and walk again.
Rewalk Robotics continues to widen its product line. In line with this, they announced a line of more affordable walking equipment for people who suffered from strokes.
15. Kratos Defense and Security Solutions, Inc. (KTOS)
The company’s Unmanned Systems Division specializes in unmanned control systems (UCS) and unmanned aerial systems (UAS), such as military drones. Its Government Solutions Division focuses on providing military services and products like microwave equipment, satellite communications, and support services for defenses and rockets.
Its UAS division provides military drones for international customers as well as the United States government.
Currently, the company has a market cap of over $1.6 billion and its 2018 4th quarter earnings-per-share (EPS) of $0.09 exceeded market expectations of only $0.06 per share. In the last two years, the company’s UAS division registered a 75% organic growth.
The company believes it will establish leadership in the unmanned aerial drones market in 2019. As such, they also believe it’s an opportunity to generate revenues exceeding $1 billion.
16. FANUC (FANUY)
FANUC is a Japanese company that specializes in CNC systems, robotics, and factory automation. With a market cap of over $35 billion, FANUC focuses solely on industrial automation and even as early as November 2017, it has already manufactured its 500,000th robot.
FANUC operates in 107 countries and 261 different locations the world over. In May of last year, the company announced its plan to build a new factory and expand two existing ones to keep up with increasing market demand.
17. Cognex (CGNX)
Cognex is an industrial automation company with a market cap of over $9 billion. It manufactures machine-vision equipment that automates vision-related tasks such as producing and monitoring of discrete items, including tires and medicines.
In April 2019, Cognex publicly revealed its latest barcode-reading and verifying products that operate 100% faster than regular barcode readers. With new products like these, Cognex has opportunities to grow robustly through the years.
18. Drone Delivery Canada (TAKOF)
Over the last five years, this drone-manufacturing company has been working on developing its technology for drone delivery products. Such products aim to meet government agencies’, service companies’, and retailers’ logistics needs in cost-efficient and greatly scalable ways.
During the first quarter of 2019, Drone Delivery Canada unveiled The Condor, which is its biggest and longest-distance delivery drone. The Condor can carry up to 180 kgs as long as 200 kilometers using a gas propulsion engine.
Drone Delivery Canada plans to start operating commercially and earn revenues this year. It also announced its plans to explore opportunities in key industries like health, energy, and construction, among others.
19. Medtronic (MDT)
Medtronic is a medical technology company with an estimated market cap of over $120 billion. It entered the robotics arena by purchasing a medical device company called Mazor Robotics for $1.7 billion in December 2018.
Two of its showcase products are the Renaissance Guidance System (RGS) and the Renaissance Brain Module (RBM). The RGS allows surgeons to perform guided surgical procedures while the RBM gives great control over surgical instruments inserted in the brain during surgeries.
20. KUKA (KUKAF)
This German industrial robot-manufacturing company has an estimated market cap of over $2.5 billion and specializes in factory automation solutions. It operates in 30 countries through various subsidiaries.
21. Drone Aviation Corp (DRNE)
The company develops tethered aerial platforms that the U.S. government uses for national security, border security, and military operations.
Drone Aviation Corp’s products give reliable and secure monitoring from above for extended periods of time. While doing so, high-strength armored tethers secure the products to the ground.
Drone Aviation’s showcase drones are the WASP Aerostat systems, which come in Tactical and Lite versions. The Border Patrol uses WASP drones to monitor the southwest part of the country, which is a sensitive area.
The WASP is a persistent yet silent drone that can withstand any weather and carry any type of payload. It’s also a very agile and mobile drone that launches and recovers easily.
Drone Aviation Corp had a breakthrough in January 2019 when it closed a deal initially worth close to $4 million with a prime contractor. This was preceded by two other breakthroughs: the retirement of convertible debts and additional investments worth $2 million.
22. Rockwell Automation (ROK)
This $21 billion robotics company focuses on providing automation, control, and information solutions through control products and solutions, and through software and architecture.
Its software and architecture division provides different communications, software, and hardware solutions to support the company’s information and integrated control structures. The control products and solutions segment provide applications monitoring and control solutions.
23. Teradyne (TER)
The semiconductor company entered the robotics arena by buying Universal Robots for $285 in 2015. While Universal Robots only comprise 12% of the company’s total sales, it’s growing very fast.
Based on its sales revenues’ growth rates, analysts at KeyBanc think Teradyne’s revenues can hit the billion-dollar mark by 2021. And considering the high prices its semiconductor rivals enjoy, analysts also think Teradyne’s stock price could double in the next few years.
According to finance site The Franklin Society, the current fast-paced technologically-dependent society allows both robotics and drone stocks to perform even better.
Now may be the best time to browse through the best robotics and drone companies to invest in. But before investing in them, it might be beneficial to do some more research on them, especially on how to invest in drones.
Try to create multiple strategies that help increase your chances of generating high profits through robotics, drones, and even alternative stock options.
What robotics and drone stocks are you keeping an eye out for? Share your thoughts with us in the comments section down below!
- How To Invest In Gun Stocks | Inside Your IRA
- Top Stocks Investors Should Watch In 2019 | Inside Your IRA
- What To Do When Your Employer Stopped Matching Your 401K | Inside Your IRA
Editor’s Note: This article was originally published on January 17, 2019, and has been updated for quality and relevancy.