Demand for drones has increased at a progressive rate in the last few years and this trend is expected to continue for the foreseeable future. A rapidly expanding addressable market should help companies such as AeroVironment (NASDAQ:AVAV) and Red Cat Holdings (RCAT) increase their revenue as well. Let’s see which is a better buy right now.Tech stocks that have the potential to disrupt the market and may help you derive outsized gains. In the last few years, several companies are looking to streamline the delivery or supply chain services space. This has increased investments in firms that are developing drone technologies.
According to a report from Statista, the global commercial drone delivery market is forecast to touch $58.4 billion in 2026, up from $27.4 billion in 2021. It indicates the market is expected to grow at an annual rate of 16% in the next five years, making companies such as AeroVironment (AVAV) and Red Cat Holdings (RCAT) solid bets for growth investors.
Let’s see which of these two stocks are better poised to outpace the broader market given current valuations and other financial metrics.