When you start to gain interest in wise investment opportunities and seek to look for options offering the best turnover and profit yield, many of the former stable routes are looking riskier than ever. The scope of the way business happens is changing, and having a head to appreciate the direction that things are moving instead of being stuck putting money into the ways of the past is your ticket to big financial returns on your investments. One of the most talked about stocks and investment opportunities out there would be various facets of drone technology for a multitude of reasons. But before you take the leap and start investing in everything claiming to be related to drones, let’s take a deeper look at why it’s a good investment, the best areas to invest in, and the types of drone production that look to be gaining the most ground on the stock market.
Why Are Drones A Good Investment For You?
When you reach the point in your life where investing seems like a promising idea, you really don’t want to back the wrong horse. While there are many articles that you can read about the promising upturn for drones over the past few years, perhaps one of the only statistics that you really need to know are the current figures and projected outcomes. According to Fortune, the current market for drones sits just over 40 billion dollars overall and can be expected to triple itself to 127 billion by 2020. While this is staggering in itself, it is also stretched across different areas of focus, as not all of the companies that make drones appeal to commercial and recreational markets, let alone have military applications. Let’s look a little more closely at which areas look to have the highest returns over the next few years, according to this aforementioned Fortune article and relative statistics.
- Commercial Drone Usage
Commercial drones are the wave of the future, second only to one other section that will be mentioned below. Companies and areas of industry across the globe are starting to see the benefits of employing drones for many jobs. Anything that can cut the cost of production down or make a process happen more quickly, translates to more profits for the company. So, it stands very clearly to reason that many of the major companies the world over are going to be falling in line with drone deployment throughout the next few years. Trades like construction, security firms, the oil & gas industry and law enforcement stand to likely employ these UAVs most heavily, as machines like this reduce risk to human life and increase job production times.
- Recreational Drone Usage
This is a sector that is also set to increase, but has always paled recently in comparison to the applications for commercial use. While this facet of drone technology will also be on the rise in the years to come, especially as the hobby evolves and becomes even more user friendly, this is possibly still one of the slower yielding investments that you can make. People themselves are always looking for the next trend to come along, and so it is hard to predict dramatic upswings for recreational drone usage in the coming years.
- Competitive Racing Drones
This possibly has one of the lowest current yields, and falls very closely in line with recreational use. This area of the industry stands by itself in many ways though, as this deals a lot more in parts and drone production rather than simply piloting drones in local parks and your backyard. Competitive racing is a growing sport, with a lot of money wrapped up in it. As this sport grows in popularity (generally coinciding with the overall growth in drone sales in general), it also is to be expected that racing drones and the hardware to tweak UAV performance in the field will also show an upswing for investors. This is one of the least likely to have a dramatic upturn in the coming years, though.
- Military UAV Usage
Since the inauguration of President Donald Trump, the new leader of the free world has vowed for higher spending for military applications, law enforcement and security firms throughout the country. Since the military is already employing high range drone technology, it is a general understanding that this spending is likely to increase over the coming years, offering more drone specific applications for military service, which of course requires the purchase of multitudes of drones each and every year, along with even more replacement parts for aging drones or machines that have crashed in the field or in training exercises. Military applications are set to upswing considerably in the next few years, especially in the defense sector, according to NewsMax. Military drone stocks could vary-well be one of the most bullish and sought after investments going forward.
How Can You Invest In Drone Technology Moving Forward?
Much like any other form of investing, you can seek the council of financial advisors or go about investing on your own, but the choice is entirely up to you. The important thing, of course, is understanding that you are investing in individual companies for the most part, so doing your research is going to be highly advised before you set out in any one particular venture or another. Some of the top companies making drones right now are still in the private sector, but are set to go public (as would make them an even bigger and more profitable company all around) but the date for these releases are still unconfirmed.
What Areas Of Drone Technology Are Excelling At The Most Constant Rate?
When you think about stocks that are drone technology specific, you want to know which sectors are going to assuredly give you a positive result. Even if the amount that it grows is not staggering, positive is always the right direction. It is important to stay informed about the changing climate of drone technology and its role in major industries, entertainment and the military. Even on a global scale, drones are set to take a serious upswing over the next several years, but solid investment opportunities rest in companies nabbing military contracts for defense drones and surveillance technology. Also look for companies that are marketing drones for inspections utilized by construction firms, insurance outfits, and the oil and gas industry.
Tips For Investing In UAV Technology
As with any kind of investment, it is always advisable to do your research and firmly know what you are dropping money into before you do. Especially if you are day trading and not going through any manner of financial advisor or stock expert for advice and clarity, it can be easy to see current figures and think that any technology outfit is the best choice for your money. Below in another section you will find what companies are currently growing at the fastest rates, yielding the highest returns on investments that have already been made, but this still does not guarantee that any of those choices are going to be the best investment for you right now. Even Ultimate Stock Alerts suggests that eager investors should tread lightly and take some time to research the best options before they add their money into the ring.
The Current Top Drone Companies On The Stock Market
Below you will find some of the most successful companies available on the stock market to invest in right now. Again, it is important to stress the importance of researching things on your own, though it can be said that all of these companies have seen a serious upswing in the past year and are projected to continue on a profitable path for the foreseeable future. The statistics themselves come from an article found on Market Watch, a service dedicated to helping fledgling investors and seasoned veterans alike to get up to the minute market information and make the wisest decisions based on real-time statistics.
1. AVAV – AeroVironment Inc. – They are seeing annual returns on sales of over 250 million dollars. Over the past few years, the company has seen steady (yet not overly abundant) growth.
2. GOPRO – GoPro Inc. – This action camera outfit has decided over the past couple of years to incorporate their technology in with drone productions, offering them an increase in revenue of nearly two and a half percent over the past year alone.
3. AMBA – Ambarella Inc. – Has seen a growth last year just over one percent. The Ambarella company actually goes hand in hand with GoPro cameras, since their processors are part of the cameras themselves.
There is an honorable mention for the most profitable of likely any drone company out there right now, DJI. The problem here is that the company has yet to go public, but reports suggest that this decision is on the horizon in the very near future, providing investors a virtual gold mine when these public stocks or shares become available.
Hopefully this was able to help you to focus your sights on the exciting world of investing, especially in a market that is set to see substantial growths like the drone industry. With so many applications from recreational use to commercial employment, drones are not just a passing phase, but something you could be very wise to invest in now while it is still affordable to.