Which stock on the stock market stands to benefit the most if beyond visual line of sight is lessened as a law and rule in the U.S. where more drones can be flown all over? AVAV, red cat, onds, or kratos or zena?
7/24/2025 08:31pm
Among the stocks AVAV, Red Cat, ONDS, Kratos, and ZenaTech, each could benefit from the lessening of the Beyond Visual Line of Sight (BVLOS) regulations in the U.S., but **Kratos** and **ZenaTech** (AVAV) might stand to benefit the most.
1. **Kratos** (Kratos Defense & Security Solutions, Inc.): Kratos is a defense contractor that provides a range of services, including drone defense technology. Their expertise in AI-driven defense solutions and their recent acquisition of BlueHalo position them well to capitalize on the potential expansion of drone operations in the U.S. If BVLOS regulations are relaxed, Kratos could see increased demand for their drone defense systems and services.
2. **ZenaTech** (AeroVironment, Inc.): ZenaTech, through its subsidiary AeroVironment, is a leader in tactical drone market with strong revenue growth and a healthy backlog. Their investment in AI-powered unmanned systems and autonomous surveillance could position them to benefit from the potential growth in domestic and international drone logistics and surveillance.
3. **AVAV**: While AVAV is a key player in the drone industry, their focus is more on defense and energy sectors, and less on BVLOS regulations that would allow for broader drone operations. Their AI integration is more geared towards enhancing their existing defense solutions.
4. **Red Cat**: Red Cat is positioning itself as a key player in the development of autonomous robotic systems for military, governmental, and commercial sectors. While they could benefit from the expansion of drone use cases, their focus is more on military and government applications, which might not be as directly impacted by BVLOS regulations.
5. **ONDS**: Ondas Holdings is a leading provider of private wireless data solutions and commercial drone solutions. Their focus is more on providing networking equipment and software for drone technologies, which could benefit from the increased demand for drone services if BVLOS regulations are relaxed. However, their core business is not directly tied to drone operations themselves.
**Conclusion**: Kratos and ZenaTech (AVAV) are the most likely to benefit the most from the lessening of BVLOS regulations. Kratos due to their defense-focused products and services, and ZenaTech (AVAV) due to their AI-driven unmanned systems and autonomous surveillance capabilities.