Draganfly Inc. (DPRO) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual investors ...

Group 1 - eGain (EGAN) is outperforming the Computer and Technology sector with a year-to-date return of 43.3%, compared to the sector's average return of 20.6% [4] - eGain is ranked 2 (Buy) in the Zacks Rank system, indicating a strong earnings outlook with a 220% increase in the consensus estimate for its full-year earnings over the past three months [3] - The Internet - Software industry, to which eGain belongs, has an average return of 23.6% this year, further highlighting eGain's strong performance within its industry [5] Group 2 - Draganfly Inc. (DPRO) has also shown strong performance in the Computer and Technology sector with a year-to-date return of 30.2% [4] - Draganfly Inc. is also ranked 2 (Buy) in the Zacks Rank system, with a 37.9% increase in its current year EPS consensus estimate over the past three months [5] - The Computers - IT Services industry, where Draganfly Inc. is categorized, has underperformed with a return of -15.1% since the beginning of the year [6]

Core Viewpoint - Draganfly Inc. is advancing its drone technology for mine and route clearance operations through a partnership with Autonome Labs, showcasing the M.A.G.I.C system integrated with its Heavy Lift UAV at the upcoming Countering Explosives Conference [1][2][3]. Company Overview - Draganfly Inc. is a pioneer in drone solutions, AI-driven software, and robotics, with over 25 years of innovation in the industry [4]. - The company focuses on providing solutions for various sectors including public safety, agriculture, industrial inspections, security, mapping, and surveying [4]. Strategic Partnership - A strategic teaming agreement was established on May 1, 2025, to combine Draganfly's Heavy Lift drone platform with Autonome's M.A.G.I.C system for aerial demining solutions [2]. - Initial integration and testing of the M.A.G.I.C system are planned for 2025, with pilot deployments expected in post-conflict regions later in the year [2]. Advantages of M.A.G.I.C System - The M.A.G.I.C system offers enhanced safety by allowing operators to remain under cover while the UAV executes payload delivery [5]. - It provides efficiency and speed through rapid deployment and reloads, which accelerates operational tempo [5]. - The system ensures precision and accuracy with pinpoint laydown for reliable results [5]. - It features versatility and adaptability for day/night operations across varied terrain [5]. - The M.A.G.I.C system includes GPS-denied resilience with non-GNSS navigation options and live video feeds to command posts [5].

Industry Overview - The global drone technology market is projected to grow at a CAGR of 14.3% from 2025 to 2030, while the commercial drone market is expected to grow at a CAGR of 20.8% from 2025 to 2032 [1][1] - Defense applications remain the primary driver for UAV technology adoption, with increasing government deployment for surveillance, reconnaissance, and combat operations [2][2] - Drone swarm technology is emerging as a significant development, allowing multiple drones to operate in coordination for enhanced operational effectiveness [2][2] Applications Across Industries - Drones are being utilized in various sectors, including mining, infrastructure monitoring, real estate, oil and gas exploration, logistics, and filmmaking [3][3] - Retail giants like Walmart and Amazon are leveraging drones for logistics, with Amazon's drone delivery capable of delivering packages under five pounds in less than an hour [3][3] - Public safety sectors are employing drones for surveillance and search-and-rescue missions, with drone swarms being explored for large-area surveillance [3][3] Technological Advancements - The drone industry is advancing rapidly due to innovations in autonomous technology and AI-powered navigation, enhancing speed and versatility [4][4] - AI integration allows drones to autonomously plan flight paths based on real-time environmental data, while 5G and advanced Wi-Fi improve data transmission capabilities [4][4] Investment Opportunities - The evolving regulatory frameworks and increasing military and commercial adoption present long-term growth opportunities in the drone sector [5][5] - Companies with strong R&D, diversified market exposure, and strategic collaborations are well-positioned for success in this growing landscape [5][5] Company Highlights - AeroVironment (AVAV) is a key player in drone technology, focusing on uncrewed aircraft and related services for the U.S. Department of Defense, with a recent $95 million contract for missile development [7][8][10] - Draganfly (DPRO) is expanding its presence in the drone ecosystem, with a focus on AI-powered solutions and a recent 22% year-over-year revenue growth [11][13] - Kratos Defense & Security Solutions (KTOS) is benefiting from increased defense budgets, with a record $13 billion backlog and a recent collaboration with Airbus for the XQ-58A Valkyrie [14][15][16]

Core Insights - Draganfly Inc. successfully demonstrated its Commander 3XL and Flex FPV drones during the T-REX 24-2 exercise, showcasing their capabilities in multi-domain defense operations [2][4][5] - The company was one of only four selected to conduct live demonstrations, highlighting its position as a leader in drone technology [3][4] - The exercise validated the operational effectiveness of Draganfly's UAV systems under stress, emphasizing their versatility and survivability for modern missions [5] Company Overview - Draganfly Inc. is a pioneer in drone solutions, AI-driven software, and robotics, with over 25 years of innovation in the industry [7] - The company provides a range of solutions for public safety, agriculture, industrial inspections, security, mapping, and surveying [7] - Draganfly has developed tactical logistics payload systems, landmine detection drones, and medical delivery drones for various applications, including emergency response [6] Product Capabilities - The Commander 3XL UAS effectively deployed multiple third-party products using its universal tactical multidrop payload system, reinforcing its role as a force multiplier [4] - The Flex FPV Recon Drone demonstrated ultra-low-latency aerial intelligence capabilities in GPS-denied environments, supporting live operations for allied forces [4][5] - Draganfly's platforms are designed to be interoperable, modular, and payload-agnostic, allowing rapid adaptation to mission needs [5]

Core Viewpoint - Draganfly Inc. is expanding its U.S. manufacturing capabilities to enhance resilience and meet rising demand for domestically produced drones, aligning with recent U.S. government initiatives to boost domestic drone production and supply chain efficiency [1][2][3][4]. Company Summary - Draganfly Inc. is a leading developer of drone solutions and systems, with over 25 years of innovation in the industry, focusing on applications such as public safety, agriculture, industrial inspections, security, mapping, and surveying [5]. - The company is committed to delivering efficient and reliable technology that aids organizations in saving time, money, and lives [5]. Industry Summary - The U.S. drone industry is experiencing a pivotal moment due to a policy shift from the U.S. Secretary of Defense aimed at accelerating domestic drone production and reducing lengthy acquisition cycles [2]. - The initiative emphasizes increased investment in U.S.-based manufacturers and aims to streamline the integration of drone systems across government and public safety agencies [2][3]. - The urgency for a resilient and distributed industrial base is highlighted, with a focus on reducing reliance on foreign supply chains [3].

Group 1 - InterDigital (IDCC) is outperforming its peers in the Computer and Technology sector, with a year-to-date return of approximately 37.7% compared to the sector average of 12.9% [4] - The Zacks Consensus Estimate for InterDigital's full-year earnings has increased by 4.9% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [4] - InterDigital holds a Zacks Rank of 1 (Strong Buy), suggesting a favorable investment opportunity based on earnings estimates and revisions [3] Group 2 - InterDigital is part of the Wireless Equipment industry, which consists of 11 stocks and currently ranks 67 in the Zacks Industry Rank, with an average gain of 15.8% this year [6] - In contrast, Draganfly Inc. (DPRO), another outperforming stock in the Computer and Technology sector, has a year-to-date return of 19% and a Zacks Rank of 2 (Buy) [5] - The Computers - IT Services industry, to which Draganfly belongs, is ranked 162 and has experienced a decline of 16.2% this year [6]

Core Insights - Draganfly Inc. is strategically positioned to support Canada's $2 billion military aid package to Ukraine, with over $220 million allocated for drone and electronic warfare capabilities [1][2] - The company's extensive experience in drone technology and its active involvement in Ukraine since 2022 enhance its ability to contribute to defense initiatives [2][3] - Draganfly's capabilities include advanced UAV solutions, counter-drone systems, and support for ISR, demining, and logistics [3][4] Strategic Alignment - Canada's military aid underscores its commitment to defending democracy and resisting authoritarianism, with a significant portion of funding directed towards advanced drone technologies [2] - The partnership between Canadian and Ukrainian defense companies is emphasized, with Draganfly's engineering expertise being a key asset [2][3] Military-Grade Capabilities - Draganfly has a proven track record in defense and humanitarian response, showcasing its advanced drone systems and counter-drone technologies [3] - The company is expanding its capabilities through domestic and international defense contracts, R&D investments, and partnerships with NATO-aligned nations [3] Company Overview - Draganfly Inc. is a pioneer in drone solutions, AI-driven software, and robotics, with over 25 years of innovation in the industry [4] - The company focuses on delivering reliable technology for various applications, including public safety, agriculture, and industrial inspections [4]

Core Viewpoint - Draganfly Inc. (DPRO) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Recent Performance and Outlook - Draganfly's earnings estimates have seen a notable increase, with the Zacks Consensus Estimate rising by 37.9% over the past three months [8]. - For the fiscal year ending December 2025, the expected earnings per share for Draganfly is -$1.52, unchanged from the previous year [8]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Draganfly's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].

Financial Performance - Draganfly Inc. reported a quarterly loss of $0.44 per share, which is better than the Zacks Consensus Estimate of a loss of $0.46, and an improvement from a loss of $1 per share a year ago, representing an earnings surprise of +4.35% [1] - The company posted revenues of $1.53 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 24.29%, compared to revenues of $1.27 million in the same quarter last year [2] - Over the last four quarters, Draganfly has surpassed consensus EPS estimates three times [2] Stock Performance - Draganfly shares have increased approximately 24.2% since the beginning of the year, outperforming the S&P 500's gain of 8.6% [3] - The current Zacks Rank for Draganfly is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.23 on revenues of $1.37 million, and for the current fiscal year, it is -$1.57 on revenues of $5.46 million [7] - The outlook for the Computers - IT Services industry, where Draganfly operates, is currently in the top 41% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]