AeroVironment, Inc. (AVAV), Lockheed Martin Corporation (LMT), The Boeing Company (BA): Unmanned Aircraft Growth Ahead

Airplane Specialist

For investors who don’t want as much exposure to the military, The Boeing Company (NYSE:BA) is another company in the drone space. Only around 40% of the company’s business is tied to the military, with the rest coming from its effective duopoly in the commercial aircraft space.

While selling planes should remain a solid business for years to come as more and more people reach the middle class and can afford to travel, the value of drones can’t be underestimated. For example, the company’s Phantom Eye high-altitude drone is powered by liquid hydrogen, can fly for up to four days carrying 450 pounds, and can “relay information across its 400-nautical-mile line of sight horizon.”

The nature of The Boeing Company (NYSE:BA)’s business leads to somewhat lumpy sales. However, the launch of several new commercial aircraft led to a big top-line jump last year. Sales are likely to remain brisk, with earnings in the $5 per share range over the near term. That’s supported by a nearly $400 billion order backlog. There’s a lot to like here despite a recent run toward all-time highs; drones are just icing on the cake.

The Real Future

While drones have become a prominent part of the military, the real future is when drones become more integrated into civilian life. That’s starting to happen, with AeroVironment, Inc. (NASDAQ:AVAV) highlighting such uses as “monitoring pipeline and utility assets or finding those who are lost and in distress.” The technology has huge potential and there are plenty of different ways to get a piece of the action including a drone specialist, a military generalist, and a diversified plane maker.

Reuben Brewer has no position in any stocks mentioned. The Motley Fool recommends AeroVironment, Inc. (NASDAQ:AVAV). The Motley Fool owns shares of AeroVironment and Lockheed Martin Corporation (NYSE:LMT).

The article Unmanned Aircraft Growth Ahead originally appeared on Fool.com.

Reuben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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