The Drone Supercycle Wall Street Still Hasn’t Priced In

InvestorPlace02-07 23:45

Meet Jonathan Rose Source: Gorodenkoff / Shutterstock.com The stocks that dominate headlines — from the Magnificent 7 to the latest AI darlings — tend to absorb all the market’s attention...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2609552825?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-02-07 23:45","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2609552825","market":"us","top_or_hot":-1,"title":"The Drone Supercycle Wall Street Still Hasn’t Priced In","media":"InvestorPlace","content":"<div>\n<p>Meet Jonathan Rose\t\t\n\n\n\n\n\n \n\nSource: Gorodenkoff / Shutterstock.com\n\n\n\nThe stocks that dominate headlines — from the Magnificent 7 to the latest AI darlings — tend to absorb all the market’s attention...</p>\n\n<a href=\"https://investorplace.com/dailylive/2026/02/the-drone-supercycle-wall-street-still-hasnt-priced-in/\">Source Link</a>\n\n</div>\n","source":"investorplace_stock_picks","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The Drone Supercycle Wall Street Still Hasn’t Priced In</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe Drone Supercycle Wall Street Still Hasn’t Priced In\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-07 23:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/dailylive/2026/02/the-drone-supercycle-wall-street-still-hasnt-priced-in/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Meet Jonathan Rose\t\t\n\n\n\n\n\n \n\nSource: Gorodenkoff / Shutterstock.com\n\n\n\nThe stocks that dominate headlines — from the Magnificent 7 to the latest AI darlings — tend to absorb all the market’s attention...</p>\n\n<a href=\"https://investorplace.com/dailylive/2026/02/the-drone-supercycle-wall-street-still-hasnt-priced-in/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4161","symbol_name":"工业机械","start_time":0,"source_url":"https://investorplace.com/dailylive/2026/02/the-drone-supercycle-wall-street-still-hasnt-priced-in/","article_id":"2609552825","we_media_id":null,"thumbnails":[],"rights":{"source":"investorplace_stock_picks","url":"https://investorplace.com/dailylive/2026/02/the-drone-supercycle-wall-street-still-hasnt-priced-in/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2609552825","pubTimestamp":1770479100,"columns":[],"sourceInfo":{"source_id":"investorplace_stock_picks","name":"InvestorPlace stock picks"},"weMediaInfo":null,"summary":"The stocks that dominate headlines — from the Magnificent 7 to the latest AI darlings — tend to absorb all the market’s attention. Especially during…","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4161":"工业机械","BK4157":"电子设备和仪器","AVAV":"AeroVironment公司","VELO":"Velo3D Inc","AIRO":"AIRO Group Holdings","IE00B7SZL793.SGD":"Legg Mason Royce - US Small Cap Opportunity A Acc SGD-H","KRMN":"Karman Holdings (TCFIII SPACECO HOLDINGS LLC)","BK4516":"特朗普概念","BK4603":"无人机概念股","DRS":"Leonardo DRS, Inc.","KTOS":"克瑞拓斯安全防卫","SIDU":"Sidus Space Inc.","DPRO":"Draganfly Inc","IE00B66KJ199.SGD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY  \" A\" (SGD) ACC","IE0031619046.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) INC","IE00B19Z4B17.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) ACC","ESLT":"埃尔比特系统","RCAT":"Red Cat Holdings Inc.","BK4187":"航天航空与国防"},"translate_title":"华尔街尚未消化无人机超级周期","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ESLT":1,"VELO":1,"AIRO":1,"SIDU":1,"RCAT":1,"AVAV":1,"KTOS":1,"DPRO":1,"DRS":1,"KRMN":1},"content_text":"Meet Jonathan Rose\t\t\n\n\n\n\n\n \n\nSource: Gorodenkoff / Shutterstock.com\n\n\n\nThe stocks that dominate headlines — from the Magnificent 7 to the latest AI darlings — tend to absorb all the market’s attention. Especially during earnings season, when price action feels loud, crowded, and obvious.\nBut as I remind members of Masters in Trading every day I go live, the biggest opportunities rarely sit in plain sight.\nThey build quietly underneath the surface — where early positioning can turn small stakes into generational gains.\nThat’s where I’ve spent the last 28 years as an options trader. And it’s why I built Masters in Trading in the first place — to give everyday traders access to the same framework professionals use to spot these shifts early.\nOver the past year alone, we’ve identified several under-the-radar themes before they went mainstream — from quantum computing to ultrapure water to the next wave of clean energy.\nToday, I want to talk about another sector that still raises eyebrows whenever I bring it up: Drones.\nMany people still think of drones as novelties. Hobbyist toys. Light-show props. Flying gadgets.\nThat perception is dangerously outdated.\nDrones are rapidly becoming core military infrastructure — a foundational pillar of the next global defense build-out.\nDrones are cheaper to deploy, harder to counter, and capable of inflicting disproportionate damage relative to their cost. Recent conflicts — particularly in Ukraine — have made that clear.\nAnd yet, despite this shift, most investors still haven’t fully priced in the true value of drone stocks.\nThat disconnect is where opportunity lives.\nWhile most traders haven’t spotted the opportunity in these stocks yet – we’ve been quietly banking on these names over the last 12 months.\nFor us, it was a tale of two drone stocks flying well below Wall Street’s radar – Karman (KRMN) and Kratos (KTOS).\nThese weren’t mere flashes in the pan.\nBoth trades stem from my conviction that drones are about to enter a supercycle.\nIn order to understand the major land grab taking shape here, let me take you back to 2025 – when both stocks were a mere blip on the radars of most traders.\nKratos: An Undervalued Stock Setting Off the Drone Supercycle\nOver the last few years, I’ve produced countless videos  covering military defense stocks. It’s one of my longest investing themes right now.\nAnd each one has included at least one mention of my favorite name in the sector – Kratos (KTOS). \nKTOS is one of the primary drone companies backed and funded by the U.S. government. The company builds low-cost, autonomous combat drones, including the Valkyrie, for the U.S. Air Force.\nThe key advantage here is affordability. Kratos delivers advanced drone capabilities without the massive price tags associated with traditional military aircraft.\nI’ve long focused on this stock because it represents a major paradigm shift in how the U.S. will treat every kind of global conflict from here on out.\nEvery major military operation going forward will involve drones. That’s no longer speculation — it’s already happening.\nIn this sense, the urgency around stocks like KTOS and KRMN can’t be overstated. Both represent “land grabs” by the federal government that will shore up the U.S.’s defense capabilities for years to come.\nRight now, nations are prioritizing domestic supply chains. They’re ensuring they own the research, development, and production of drone technology rather than relying on foreign competitors.\nAt the same time, drones are evolving rapidly by integrating AI, edge computing, real-time battlefield mapping, and autonomous decision-making.\nKTOS is key to handing the U.S. a strong advantage in defense applications around the world. And as we know, recent conflicts, particularly in Ukraine, have made this shift even more urgent.\nAll of those factors marked KTOS as one of my favorite drone stocks.\nBut when I recommended KTOS earlier in 2024, it wasn’t being priced at all like the essential player I knew it was.\nBack in March 2024, the stock was trading around $16. It was undervalued. Thinly traded. A very small valuation relative to close competitors like AeroVironment (AVAV) and Velo3D (VELO).\nBut I was certain of the underlying value of the stock.\nAnd I knew any smart options trader could easily land a series of doubles – and even triples – with well-timed trades on KTOS.\nLooking back, one thing is very clear to me. We were getting in right at the start of a massive run for KTOS.\nBack in March, I recommended viewers of Masters in Trading LIVE climb into the July 2024 calls at $20.\nI even recommended buying the underlying stock itself. After all, shares were still very cheap. I knew more bullish exposure to a potential run in the stock was a must.\nWe caught a beat on the massive call volume that started lighting up the stock in the middle of 2024.\nAnd from there, KTOS’s $16 shares exploded.\nWe caught our first big win on the stock with a 100% gainer just under a month after opening our initial March calls.\nWe added upside exposure with another set of calls that yielded a double – on top of our double on the underlying stock itself.\nThose big wins were no one off. Over the last 12 months, KTOS has gone into overdrive.\nFrom March of 2024 to January of 2026 alone, the stock has rallied over 421%. That’s undeniable momentum – and KTOS shows no signs of slowing as the stock circles new highs in February.\nKTOS is still a core name in the drone space and a long-term favorite.\nAnd while we’ve managed gains in this under-publicized sector, there’s one key takeaway every trader must know…\nStocks like KTOS don’t gain value in isolation.\nI’ve told you a lot about how we capitalized on the underlying move in the stock.\nBut I haven’t told you much about how KTOS was being valued in relation to the competition. And that’s key for us.\nBecause that dynamic is where the real gains are made.\nThe KRMN Trade: How We Secured Triple-Digit Gains on a Small Cap Competitor\nKTOS wasn’t the only player I was watching in this space between 2024 and 2025.\nOther names like Aerovironment (AVAV) and Elbit Systems (ESLT) kept setting off my UOA Monitor over the last two years.\nAnd right as heavy call volume began lighting up these smaller players, I kept noticing another stock repeatedly tripping my scanner – moving right along with the sector but gaining less attention than its nearest competitors.\nKarman (KRMN) looked like it was on a similar fast track for exponential growth to names like KTOS.\nFor those who don’t know, KRMN supplies key components used across 100+ active missile and space programs.\nThe company works directly with major defense contractors like Lockheed Martin, Northrop Grumman, and United Launch Alliance. That means the stock is deeply embedded inside the U.S. defense ecosystem – similar to KTOS.\nAnd just like KTOS, absolutely no retail trader was paying attention.\nI shared KRMN back in August of 2025 – right when options started trading on the stock. Trading volume was thin. Market cap was low. Again, we were there before most investors had a clue.\nBut even back when I initially highlighted the stock, KRMN was already posting triple-digit growth, including 233% year-over-year earnings growth.\nThat’s exceptional — especially for a company operating in a highly regulated industry. And the stock has only gone on to become an indisputable winner as the drone build-out takes shape.\nWith a market cap still under $5 billion, KRMN offered meaningful upside as it scaled. This is exactly the kind of name institutions tend to discover after the early move has already begun. But not us.\nI recognized early on that rising U.S. defense budgets, increased NATO spending, and reshoring initiatives were creating a multi-year runway of government contracts. Those tailwinds are exactly what can propel a small-cap like KRMN to exponential gains.\nKRMN holds specialized government contracts that are extremely difficult to replicate. These high barriers to entry protect its competitive position — similar to what we saw years ago with KTOS.\nThe Drone Divergence I Caught Before the Street\nIn many ways, it was pure déjà vu. KRMN looked like the next KTOS – just at an earlier stage.\nAnd that brings us back to how we value trades in relation to each other. I always like to point out that stocks don’t carry value in isolation.\nThe key is tracking stocks in the same or adjacent sectors that tend to mirror each other.\nStocks like Nvidia and AMD – two of the biggest semiconductor companies in the world – often trace each other’s moves. It’s the same thing with base metals, software stocks, and other sectors we track here in Masters in Trading.\nKTOS and KRMN fall right in this camp.\nCompare the two stocks – and you start to see that these players have been riding a similar wave of momentum the whole time. But there’s one big (and profitable) catch.\nJust take a look at the price charts for both stocks below:\n\nOver the same period, we can see that both stocks were moving in a similar trajectory – but KRMN was seriously trailing KTOS in that same span.\nThat price action made one thing very clear.\nWhile markets were starting to seed momentum in KTOS, KRMN was still way off the radar. No one saw what I was seeing just yet.\nAnd that’s precisely what tipped me off to the potential to leverage both stocks for huge profits.\nThe KTOS/KRMN Trade Setup No One Saw Coming\nLuckily for us, we were already on the ground floor with both picks.\nIn the free portfolio, we got long KRMN stock. We originally got into KRMN because the stock was grossly underperforming KTOS. And we held KRMN as it stayed cheap relative to KTOS.\nLiquidity improved by orders of magnitude over the next six months. And call flow was only going higher from there.\nThat’s how early-stage institutional names evolve — first the stock, then the options volume.\nLooking at how it all turned out, we managed another win before most investors on Wall Street knew about it – an 82% gain in 160 days.\n\nOf course, markets are fickle. And the tables have turned once again for both stocks.\nRight now, it’s actually KTOS that’s cheap relative to KRMN.\nAnd that price imbalance just triggered another trade for us.\nAfter we sold KRMN for a hefty return, we used those proceeds to get right back in position with KTOS. It was another pure divergence trading setup – the same one that has netted us doubles and triples on both names over the last two years.\nNow, we have a lot of options on the table from here.\nWe have the leverage. We have first mover advantage. And most of all, the fundamentals are firmly on our side.\nAnyone reading this still has the opportunity to gain exposure to these key mispricings in drone stocks.\nBut I’m not recommending either of the picks I’ve covered to you today. In fact, I’ve got my eye on the next KTOS or KRMN from here.\nAnd when it comes to the next wave of winning drone stocks, there are simply too many names that Wall Street isn’t paying attention to yet – setting up a similar opportunity for early investors to get in position.\nThe Drone Supercycle Is Just Getting Started\nIn previous episodes of Masters in Trading LIVE, I’ve categorized the drone build-out into a few distinct tiers of players that will become heavy hitters in the next few years.\nI grouped the industry into these tiers:\nTier 1: Core Drone ManufacturersThese are the primary names driving the industry:\n\nKratos (KTOS)\nAeroVironment (AVAV)\nElbit Systems (ESLT)\nLeonardo DRS (DRS)\n\nTier 2: UAV Subsystems and Defense SuppliersThese companies support drone infrastructure and components:\n\nVelo3D (VELO)\nSidus Space (SIDU)\n\nTier 3: More Speculative NamesHigher risk, earlier-stage exposure with less liquidity.\n\nAIRO Group Holdings (AIRO)\nDraganfly (DPRO)\nRed Cat Holdings (RCAT)\n\nWhen evaluating these stocks, the focus was on market capitalization, historical volatility, implied volatility, and options liquidity.\nCompanies with similar market caps tend to move together – just like we saw with KTOS and KRMN. And volatility helps determine whether a stock is suitable for options trading or better suited for long-term investment.\nEach of these tiers will become essential as the next wave of drone tech hits the market.\nAnd I want to make one thing very clear… It doesn’t just end with these stocks.\nDrones are no longer optional in modern defense. They are becoming foundational technology, reshaping how conflicts are fought and how governments allocate capital.\nThe key to profiting from this trend is discipline. We don’t chase stocks at extremes. We wait for pullbacks, respect expected moves, and let the sector trend work in our favor.\nI’ll be tracking these names and more closely throughout 2026 on Masters in Trading Live, where we break down entries, exits, and strategy in real time every weekday at 11:00 a.m. Eastern.\nBut if you want to dive even deeper – and get into the next exciting drone name before the crowd does…\nI highly encourage you to check out the Masters in Trading Options Challenge.\nThe Challenge is where we take everything you’ve learned in my daily LIVEs — fixed risk, thesis-driven exits, laddered entries, defined-duration trades, and emotional discipline — and put it into practice in a structured, step-by-step environment.\nFor two weeks, we walk through the foundations of real options trading the way I learned them on the trading floor. You’ll learn exactly how I think, exactly how I build trades, and exactly how I manage both the winners and the losers.\nJust click here to check out what the Masters in Trading Options Challenge has in store for you.\nRemember, the creative trade wins,\nJonathan Rose\nFounder, Masters in Trading\nP.S., What we’re seeing in drones is what happens when a theme moves from early adoption to institutional priority. AI may be approaching its own transition.\nHistory shows that after the first rush of enthusiasm comes a moment where expectations get tested. Leadership changes. Capital rotates. And the investors who prepared ahead of time have options.\nVeteran market strategist Louis Navellier believes one of those inflection points is fast-approaching. Louis is watching February 25 closely as a potential point where expectations meet reality and investors are forced to decide whether to hold, sell, or rotate.\nThe real advantage isn’t guessing what headlines will say afterward —  it’s knowing, in advance, how to respond.  He’s laying out how he’s thinking about that shift, where risk may sit, and what kinds of names could define the next phase. If you’d rather be prepared than surprised, you need to see this.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nSubmit\n\n\n\n\n\n\n\n Jonathan Rose\nEditor, Masters in Trading: Daily Live\n\n\nMeet Jonathan Rose\nJonathan Rose is a veteran trader and educator with more than two decades of experience navigating the fast-paced world of professional trading. He began his career in 1997 on the floor of the Chicago Mercantile Exchange, managing Nasdaq and S&P 500 futures during the height of the dot-com boom.\n\n\n\t\t\t\tLearn more about Jonathan\t\t\t\n\n\n\n\n\nArticle printed from InvestorPlace Media, https://investorplace.com/dailylive/2026/02/the-drone-supercycle-wall-street-still-hasnt-priced-in/.\n©2026 InvestorPlace Media, LLC","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":2,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2609552825","isCrawlerRequest":true}