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    Washington Just Lit a Fire Under U.S. Drone Companies - 1/6

    Ian Cooper
    Tuesday, January 6, 20267 min read
    Washington Just Lit a Fire Under U.S. Drone Companies - 1/6

    These 3 Drone Stocks Could Fly to Higher Highs

    We’ve been pounding the table over drone stocks for months and the market has started to agree.

    Back in late August, we highlighted opportunities in three red-hot names:

      AeroVironment (SYM: AVAV), which surged from the mid-$200s to the high-$200s

    • Draganfly (SYM: DPRO), which posted a sharp, momentum-driven move

    Those were big runs but we think they may prove to be only the early innings of a much larger cycle.

    Why? Because drones aren’t a “cool tech trend” anymore. They’re quickly becoming core infrastructure for (1) modern defense and deterrence, (2) border and critical-infrastructure security, and (3) commercial operations ranging from inspection to emergency response to logistics. And at the policy level, Washington is now signaling that it wants the United States to lead the global drone economy, not follow it.

    That’s the setup for a multi-year demand tailwind that can turn the right drone companies into genuine growth stories.

    In June 2025, the White House issued an executive order focused on accelerating safe commercialization, expanding routine drone operations, scaling U.S.-based production, and boosting exports of “trusted, American-manufactured” drone technologies. In plain English: the administration wants drones to become normal - and wants American companies to be the primary beneficiaries.

    Crucially, the same order puts emphasis on In July 2025, Defense Secretary Pete Hegseth issued a directive aimed at accelerating procurement and fielding of drone systems - especially affordable, widely deployable platforms. The theme is clear: reduce bureaucratic drag, approve more U.S. products for purchase, and push capability down to frontline units faster than traditional defense procurement cycles allow.

    That matters because the “drone era” isn’t about a handful of exquisite systems. It’s about Banyan Hill Publishing

    The administration’s broader legislative and budget posture is increasingly supportive of defense modernization. For example, the scaling low-cost weapons into production, exactly the kind of framing that tends to support drones, autonomous systems, and attritable platforms.

    In August 2025, U.S. Transportation Secretary Sean Duffy unveiled a proposed BVLOS rule designed to safely integrate unmanned aircraft systems into the National Airspace System, reducing the need for one-off waivers and exemptions that have historically slowed adoption.

    This is not a small deal. BVLOS is the difference between:

    • Another accelerant is the ongoing shift toward restricting or discouraging foreign-made drones and components in sensitive use cases. In late 2025, the FCC announced a ban on the sale of new foreign-made drones (including certain Chinese manufacturers), citing national security risks. That type of policy pressure can rapidly re-route procurement toward U.S.-aligned suppliers; particularly across government, public safety, and critical infrastructure.

      demand is real, regulatory friction is being reduced, and policy incentives are skewing toward domestic providers.

      The 3 drone stocks we’re watching

      AeroVironment is one of the most recognizable U.S. names in small drones and loitering munitions, with platforms that fit directly into the modern battlefield’s “cheap, fast, and effective” playbook.

      Its Switchblade loitering munition systems are a prime example of where defense demand has been heading: portable, precise, and operationally flexible. The company has also been publicly associated with the Pentagon’s broader push toward rapidly fielding autonomous and uncrewed systems.

      Why it matters now: If procurement timelines compress and “Buy American” becomes more than a slogan, established domestic suppliers with production capacity and battlefield-relevant products can be first in line.

      What to watch: contract momentum, production scaling, and any updates tied to DoD modernization initiatives.

      Company: Ondas Holdings (SYM: ONDS)
      Autonomy + counter-drone exposure in one package

      Two areas stand out:

        Autonomous “drone-in-a-box” systems designed for repeatable missions with limited human intervention

      • What to watch: order flow, margin trajectory, and how quickly the company converts pilots and initial deployments into recurring programs.