The Next AI DRONE STOCKS That Could Explode “Growth Stocks”

本站添加: 2026-05-19

[00:00:00]The drone market is going to create massive stock market winners, just probably not the ones everyone's talking about. I'll be real. Most picks flooding social media and YouTube videos right now are pre-revenue stories with truly weak fundamentals. Meanwhile, the companies supplying the actual technology stack are already embedded in military programs, already generating earnings, and already sitting in the top 2% of every stock we analyze in our proprietary quant model. Today, I'll share four names nobody's covering. This includes one that is already shipping hardware inside an active US Army drone program. Another has analysts projecting over 200% earnings growth.

[00:00:37]I'll get to both of these stocks and more in today's video. But first, I want to introduce myself. I'm Steve Rightmeister, but all my friends call me Righty. I spent over a decade as editor-in-chief of Zacks.com, and now I'm a partner at WallStreetZen.com, where our quant team runs every stock through 115 proprietary factors to find the ones most likely to outperform. So, please quickly hit that like button. It helps the algorithm put more real research in your feed. Before I get to the stocks, a little bit of context.

[00:01:05]Look at the major conflicts in the past decade. Ukraine, the Houthis, Iran, drones have become a centerpiece of modern warfare, and governments are spending billions to scale their programs. Nobody disputes the size of this opportunity anymore. Here's the investor trap, though. The pure play drone companies getting all the attention are mostly pre-revenue microcaps. For every one that becomes the next big winner, a dozen will burn through their cash and never reach profitability, and shareholders will be left with severe losses on their hands, right? Our quant rating system confirms this. Most of the popular names have only D or F ratings for financials and safety. Yeah, D's and F's are bad. The smarter way to play a technology boom has always been this simple idea. Don't bet on the gold miners to strike it rich. Instead, own the folks supplying the miners their picks and shovels, right? Every all the services and products that go into that boom. Okay.

[00:02:01]So, when the AI boom hit, the real money wasn't in the startups, it was in the chip makers and data center suppliers.

[00:02:07]Same logic applies here. Every drone depends on the same foundational technology layers regardless of who manufactures it. We're talking about propulsion and fuel control, power distribution and avionics, precision motion actuation and onboard AI computing. The company supplying those layers profit no matter which manufacturer ends up on top. Now, we found four of them with superior fundamentals and the most appealing upside potential. Let's get into it now.

[00:02:34]Our first stock is Woodward with the symbol of WWD. This aerospace giant has been in business for more than eight decades making control systems for aircraft. Every time a military program adds capacity and fuel-powered drones, Woodward's technology is inside the engine making it run.

[00:02:52]It has more than doubled its return on capital employed the past 3 years from around 7% to nearly 17% far surpassing the aerospace and defense industry averages. On top of that, when you look at return on equity and return on assets, the stock also blows away the competition in these categories. Okay, I know that's all a little bit wonky, but it's a clear sign of a business becoming dramatically more efficient at converting every dollar it places into profit. There's also strong pattern earnings momentum at work here. Well, that's because the company has beaten earnings estimates for 12 straight quarters. I'm going to put up the results in the screen so you can take a look for yourself, but suffice it to say those aren't small earnings surprises, right? Something special is taking place here.

[00:03:36]Not surprisingly, the Zen rating system grades WWD as a A, meaning a strong buy recommendation. In fact, it is in the top 3% of all stocks for the fundamental strength based upon the full 115 factor review.

[00:03:50]Looking at the Zen component grades, we find a well-rounded picture that makes Woodward a very appealing investment.

[00:03:56]We're talking about top 14% for growth, top 9% for safety, top 7% for financial strength, and top 4% for sentiment, which means the smart money are already targeting the stock. One area to flag up front is value, which comes in the middle of the pack C rating. Now, this doesn't mean it's overvalued, but you're not buying at a discount, either.

[00:04:15]When it comes to Wall Street, six of the seven analysts covering the stock rate it as a strong buy, and there are some well-respected analysts in the group, so not social media pump and dumpers. The strong buy camp includes Scott Deuschle of Deutsche Bank, a top 5% analyst based upon his stock picking performance, and then we also have David Strauss of Wells Fargo, who is in the top 7% of all analysts for his stock picking prowess, okay? But overall, that fundamental mix tells you this isn't a pure momentum play or speculative bet. Instead, Woodward is a quality company with consistent execution that likely will show up in continued earnings growth and share price gains. Now, before I get to that next pick, if you want to keep seeing data-driven analysis like this every week, subscribe and hit that notification bell. Now, my next video will cover a set of picks that surprised even me when the ratings came out, so you don't want to miss it upon release.

[00:05:09]Let's move on to stock number two, Astronics, with the symbol of ATRO. Now, this company has a financial story that almost nobody's framing correctly, but first, we need a little background the company to set things up. Here's what they actually do. Every aircraft, whether it's commercial jet, a military platform, and an or an autonomous drone, needs something to cleanly distribute electrical power to every system on board and manage it precisely under load. Astronics builds exactly that, the power systems, electronic circuit breakers, and avionics that makes it possible.

[00:05:42]And their circuit breakers aren't just passive components, they're designed specifically for remote monitoring and control, which makes them foundational infrastructure for any aircraft that flies without a pilot. Their CEO has already flagged a growing opportunity with drones. So, as autonomous platforms scale, Astronics is already embedded in the supply chain. Now, most people look at Astronics and see a recovery story.

[00:06:05]Revenue collapsed during the pandemic as many companies did. It bottomed out around 445 million a year and has since doubled to nearly 862 million in 2025.

[00:06:16]Now, for as impressive as that is, the real story is what's taking place with earnings. Now, analysts are projecting earnings growth of over 200% while revenue only grows around 15%. That gap is the main thesis to buy these shares.

[00:06:29]When a company gets its margins destroyed during a downturn and then claws back to normal operating conditions, something wonderful happens.

[00:06:36]Every incremental revenue dollar starts falling through to the bottom line at a dramatically higher rate than it did during the lean years. The business doesn't need to grow fast for earnings to explode higher. It just needs to keep recovering, and it most certainly is at Astronics. What about the rest of the data? Overall, Astronics is in the top 1% of all the Zen ratings stocks that we take a look at. That's an impressive fundamental strength. It also ranks in the top 1% for growth, meaning that as we look at 22 different growth metrics, things like sales acceleration, free cash flow momentum, and margin improvement, it's at the very top of the stocks we track. When it comes to sentiment, it's in the top 14% of all stock. That includes the street high price target, implying more than 50% upside in the year ahead. Even better, that target comes from Truist Securities researcher Michael Ciamole. He ranks in the top 1% of Wall Street analysts in terms of actual stock picking performance, meaning he knows a thing or two what he's talking about. So, when he's pounding on the table with a stock like Astronics, it pays to listen up.

[00:07:37]One risk to consider with these shares is that about 90% of the comes from aerospace companies. Thus, Astronics carries meaningful concentration risk from the likes of Boeing and Airbus. Any weakness at those companies would likely flow through to Astronics. But, when a company has this kind of powerful earnings leverage, a Zen rings a a impressive Wall Street support, and a clear pathway into the growing autonomous aviation market, the data says the stock is worth serious consideration for your portfolio. So, I hope you give it some thought. Now, we're moving on to stock number three in Moog uh with the symbol of mog.a.

[00:08:12]Think about what an AI drone needs to do in the physical world. It needs to hover precisely in a 20-mph crosswind, adjust its flight path in real time based on sensor data, and execute autonomous maneuvers with enough [snorts] accuracy to land on a moving platform or put a payload within inches of its target. Now, none of that happens through software alone. You need hardware that translate the algorithms instructions into physical movement with extreme accuracy. That's exactly what Moog makes, and they've been making it for over 70 years. Precision flight control actuators and motion systems for missiles, fighter jets, satellites, and even spacecraft. Their components are inside some of the most demanding aerospace programs ever engineered. Any autonomous aircraft where precise, reliable physical control is a non-negotiable is a potential Moog application. Here's what I find generally compelling from the data standpoint. Moog's revenue has grown pretty consistently over the past decade. We're talking about 6 to 9% annually compounding quietly and consistently. This has led to an even more impressive 90% increase in earnings over the past 3 years, and it seems to be accelerating.

[00:09:22]In a defense sector full of lumpy government contracts and volatile earnings, that kind of consistency is rare and typically rewarded by investors with an escalating share price. Now, interestingly, the stock has pulled back a little bit over the past month from its highs. This makes Moog the best buy the dip opportunity of the four stocks we're talking about today. Zen Ring Systems smiles on Moog with an A rating overall and it gets really strong marks in these key areas. We're talking about top 9% for sentiment, top 7% for safety, and top 4% for growth, right? Earnings momentum plus a low risk profile plus institutional money flowing in is a very nice combination to just support the outlook for these shares.

[00:10:02]The main risk is about defense budgets.

[00:10:04]If they start to decline, then it darkens their outlook. But honestly, that is a pretty low risk given the global increase in defense spending, which shows no signs of slowing. But once again, we have a strong pattern of earnings beats on our hands and I'll put it on the screen for you to see in the share price and you'll appreciate why Moog is such an appealing defense player this time, especially given rising drone demand. The fourth and final pick is the smallest company on the list today and the one with the most to prove. I'm talking about Lantronix with the symbol of LTRX.

[00:10:35]Every company we've covered so far supplies technology that goes into drones among other applications. This one is a little different. Lantronix makes edge AI computing modules. Now, think of it as the brain that allows a drone to run artificial intelligence autonomously, processing sensor data, making navigation decisions, and executing missions in real time. All this without connection to a cloud server. For a military drone operating contestant environment where communications can be jammed, on-device intelligence isn't a nice to have option. It's a must and the whole point of the entire platform.

[00:11:12]In August 2025, Lantronix announced their solution was selected by Teal Drones for a production of the Black Widow drone under the US Army short-range reconnaissance program.

[00:11:22]Production shipments have already started. All right. Then in March of 2026, just a couple months ago, Lantronix partnered with Unusual Machines to develop autonomous drones components aligned with the Department of Defense drone dominance program. This is a $1.1 billion dollar initiative to field hundreds of thousands of autonomous platforms by 2027.

[00:11:44]They've also won design selections with Trillium Engineering and Siteline Intelligence for military drone imaging systems.

[00:11:53]In the space of just eight months, Lantronix went from an Internet of Things connectivity company to an often named supplier inside active US military drone programs. That's the difference between it and some of the most popular drone tickers being touted online. With LTRX, the orders are real and already on the books. Once again, we have an A-graded stock overall according to the Zen ratings. The key areas of strength are for growth in the top 6% of all stocks. Even better is the top 4% showing for sentiment. Financials is not too shabby, either. The top 15% of all stocks reviewed. No doubt they're impressive for 3% gross margin is part of that equation.

[00:12:33]That fundamental mix tells you exactly what kind of stock this is. That being where institutional money is positioned ahead of a major ramp-up of revenue.

[00:12:41]It's a forward-looking bet on what is likely to come. Now, Wall Street coverage is a a bit thin here. Uh we're talking about one strong buy and one buy rating, both from top-rated analysts.

[00:12:51]And their price targets imply upside of almost 50 to 6% in the year ahead. Now, if Department of Defense program timeline slip or if the gap between declining legacy revenue and growing drone revenue takes longer to materialize, then the bullish thesis for this stock will take longer to play out.

[00:13:09]This makes Lantronix the highest risk yet highest reward pick today. Meaning it is a bit more speculative. So, consider sizing your positions accordingly. But, if you're looking for a company where the AI drone revolution is already showing up in actual hardware shipments to the US Army with more contracts likely behind it. The Lantronix is the name uh the data keeps pointing to. Now, amazingly, almost nobody is covering this stock as a drone play yet, which is why the upside potential is so significant.

[00:13:38]The way most investors are playing drones right now is backwards. They're betting on which pre-revenue startup survives long enough to figure out a business model. All the while, the companies that already have the revenue, the earnings, and the technology embedded in actual military programs sit there practically unnoticed. Now, I want to hear from you. Which of these four stocks did you find most exciting and why? Or are you investing in drone stocks with other names uh not on the list today? Now, please share your thoughts in the comment section below. I read every one of them and often pick up fresh ideas from our community to use in future videos. Lastly, if you're interested in more data-driven research, then I recently did a video on three stocks that could triple in 2026. That video is popping up on your screen right now.