Defense spending is shifting, and drone stocks are front and center.
Back in our July 18 episode of Market on Close, John Rowland, CMT, shared a watchlist of drone and defense stocks and revealed his personal exposure to the sector through Red Cat Holdings (RCAT).
This week, the story got even bigger: NATO announced it has approved Red Cat’s Teal Drones Black Widow™ System for its procurement catalogue.
Why It Matters
- NATO access: The approval means NATO members can order directly through NSPA-managed channels, streamlining acquisition.
- Military-ready tech: Red Cat’s Black Widow drone is lightweight (<3 lbs), has 45+ minutes of endurance, and comes with EO/IR sensors for day/night ISR operations.
- Revenue growth potential: The contract spans three years with options to extend, opening significant new sales opportunities.
RCAT stock jumped more than 29% on the news Thursday, and is now up 134% from the lows in March.
Beyond Red Cat: Palantir-Backed ONDS
Another name on John’s custom Drone Stocks watchlist is Ondas Holdings (ONDS), which announced a strategic partnership with Palantir Technologies (PLTR) earlier this year.
ONDS’s Optimus and Iron Drone Raider systems will integrate Palantir’s Foundry AI platform.
The partnership enhances real-time intelligence and autonomy — key for defense and homeland security adoption.
ONDS has emerged as a top performer in John’s watchlist.
How to Find Drone Opportunities
The defense industry isn’t limited to the big ETFs like the iShares US Aerospace & Defense ETF (ITA) and GlobalX Defense Tech (SHLD). Barchart makes it easy to drill down into niche plays:
- Explore John’s Drone & Defense Stock Watchlist to see all the names he’s tracking.
- Use the ETF Finder to compare performance of aerospace and defense funds.
- Pull up Top Trade Alerts on RCAT, ONDS, and PLTR to analyze technical setups.
Bottom Line
Whether it’s Red Cat securing NATO approval or Ondas partnering with Palantir, drone stocks are no longer just a futuristic idea. These next-gen stocks are becoming a central piece of modern defense.
Watch this clip from Market on Close where John shares his custom drone stock watchlist:
Stream the full episode for more insights on defense and aerospace, and follow aerospace stocks on Barchart to track how the sector evolves.
On the date of publication, Barchart Insights did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
