Up more than fivefold in just six months, Ondas (ONDS 2.57%) could be on its way to becoming a story stock that lives up to the optimism. Price action and time are the ultimate judges of whether equities reach that status. Still, it's not a stretch to see this purveyor of drone and wireless technology extending its multibagger ways.
Sure, some skepticism is warranted. Shares of Ondas nearly quadrupled last year, and to some investors, that implies a sequel is unlikely in 2026. Doubters may come to regret that skepticism because multiple factors support the bull case for Ondas. I see these as smoking guns telling me this stock is going to keep soaring.
Smoking gun? Try more than one.
Perhaps due in part to a market capitalization of $3.7 billion, just eight sell-side analysts cover Ondas. They all rate it the equivalent of buy or strong buy. Notably, analysts have steadily increased their price targets in recent months, with an average price objective of $11.50 implying nearly 18% upside from the stock's closing price in 2025.
Image source: Getty Images.
Now, analysts don't bat a thousand, and if their optimism on Ondas isn't enough to stoke interest among prospective investors, perhaps the following data point will be. The drone market is expected to reach $69 billion, with that figure forecast to more than double to $147.8 billion in 2036. One way of ascending to the story-stock-that-pans-out pantheon is by operating in a rapidly growing segment. Ondas checks that box.
Speaking of high-octane growth, Ondas estimates that 2025 sales reached at least $36 million, with that figure more than tripling to $110 million this year. Should the company's first- and second-quarter results imply that $110 million will be topped, the stock may rally.
NASDAQ: ONDS
Key Data Points
Ondas has other favorable traits that arguably aren't discussed enough. It ended the third quarter with a pro forma cash balance of $840.4 million, and this balance sheet strength enabled it to establish a $150 million investment division. Those aren't familiar hallmarks of financially flimsy, highly speculative growth companies.
In other words, Ondas is a potentially lower-risk growth story than some investors might think.
