Unmanned aerial vehicles long have been a staple for the military in the United States, both to use as weapons and for surveillance, yet that is just the beginning of the sector's potential. Drone use in the military exhibits no indications of slowing down.
Drones, outside the military, are getting into the mainstream. Consumer products have shown to be popular for videographers and photographers. Amazon, going beyond that, hopes to revolutionize the shipping sector by utilizing drones to deliver products to consumers in record time. It sounds as if it’s the pie in the sky, yet it could happen.
The probabilities of drones both in civilian and military life still are being explored, as the sector largely is still in its infancy. For those investors searching to get into the promising industry, below are 3 companies involved in drones which are worth your investment.
This company’s stock performance since they went public in June of 2014 has been dismal, with a 30 percent dip in its initial price. In 2015, the stock was hit especially hard, with a dip of 60 percent. Its latest quarter missed expectations, and they offered poor guidance for the holidays. These figures do not look good, yet GoPro is settling in upon realistic prices upon irrational hype.
GoPro manufactures the small video cameras which are the standard for customers piloting drones for videography and photography. The popularity of their product is widespread, and expansions continue, though it is below expectations. Amongst the issues the company is facing is that their product appears too well designed, as customers are not upgrading as much as Wall Street would want.
GoPro missed out upon drone development, yet currently has plans to enter the market. The company is playing catch-up with its competition; however, they are so strong that sales might produce lots of first-time drone purchasers. GoPro's drone is set to come out in the year 2016, and its stock might remain a bargain until then.
The United States government is a satisfied Lockheed Martin customer continuously growing range of drones. The company manufactures numerous cargo planes, fighter jets, and helicopters for use in the military, yet drones are predicted to be the future. They currently are the largest military contractor on the globe.
They’ve been exploring non-military usage of their unmanned aircraft with very promising results. Their line of K-Max helicopters has been utilized to transport cargo into Middle East hot spots, yet they are testing out their efficiency in the United States to battle wildfires, as well. The government is optimistic about this use that bodes well for the company’s expanding fortunes.
One common Lockheed Martin concern, which heavily relies on military contracts for most of its revenues, is that there is pressure on Congress to decrease military spending as well as scale back projects. As it is a popular talking point with politicians, there has been little slowdown for Lockheed Martin. The 3rd quarter fiscal earnings report of 2015 exhibited revenues being beyond expectations. Lockheed Martin has solid financial footing and recently made a decision to up its already-generous dividend of over 3 percent.
It’s different from the additional companies talked about here because it is solely about drones. The manufacturer based in California specializes in tiny drones for use in the military. More recently, it received an $18.5 million contract from the Pentagon in order to supply its 4.2 lb. Raven surveillance drone. The unit already was the most-utilized military tiny drone worldwide.
They’ve experienced poor fiscal 2nd quarter earnings, and released their most recent earnings on November 24th. In spite of their poor performance, the company is a promising small cap with a lot of potential.
The Industry’s Future
The drone market, in 2015 was estimated to have a value of $10 billion. By 2020, the industry’s size is expected to increase to over $15 billion. It is a promising sector which could pay off, particularly as governments shift towards unmanned aerial vehicles as well as consumers are enticed by affordable units for photography.
However, irrespective of whether the public is enthusiastic about drones, it seems as if little is going to have the ability to stand within the way of their widespread adoption. A few experts, which include Kara, wonder if this technology might share the exact same fate as 3D printing, in which initial optimism was substituted with questions about how widely it actually can be applied. Nevertheless, within the time since Kara presented his studies in January, there haven’t been any indications of a slowdown.
As emerging technology of drones brings about a plethora of new concerns and questions with regard to privacy, safety and security, there isn’t any doubt that drones are going to offer a host of opportunities for businesses and developers searching to incorporate them into our daily lives.