Image source: Getty Images
These days, there are tonnes of high-quality growth stocks that are forging their own paths and creating new opportunities for investors. Drone Delivery Canada (TSXV:FLT) is one of those stocks.
The company is easily one of the most unique growth stocks that Canadian investors can buy for the long run today.
Ever since drones were created, their uses have skyrocketed. And as the technology continues to improve, with drones able to fly faster for longer and with higher payloads, the potential benefits for these unmanned aircraft have grown considerably.
Naturally, many companies have been looking at the potential to use drones. And eventually, with scale, the costs will be much lower, making drones an extremely efficient way to move goods.
So, FLT is a stock that offers great potential. But can it become a billion-dollar business, and is it worth an investment today?
Drone Delivery stock’s background
Drone Delivery Canada has a clear goal to become the top global drone delivery company. FLT stock was founded in 2014 on the vision for a new, much more efficient logistics platform using drone technology.
Drones offer a tonne of advantages, including vastly improved speeds and the potential for much lower costs.
Starting a drone delivery company from scratch isn’t easy, though, and FLT has done a tonne of work to get to the point it’s at today.
From creating the entire logistics network to building and testing drones, the company has even signed pilot partners to test its operations. All of this work that Drone Delivery has put in has already created a tonne of intangible value, even before the company began to earn any revenue.
Now that it’s fully compliant with regulations for commercial drone use, and the company has begun to generate revenue, it has the potential to start to grow rapidly. But can FLT stock become a billion-dollar company in just over three years?
Can FLT become a billion-dollar stock?
As of Thursday’s close, Drone Delivery Canada had a market cap just north of $200 million. So, in order for FLT stock to be worth $1 billion, the stock would have to grow by just under 400%. While that may seem like rapid growth, I believe the company has the ability to do that for a couple of reasons.
First, e-commerce, which will be one of the most important industries for the drone delivery industry, continues to gain rapidly in popularity. Even after the pandemic, consumer habits have changed. For many items, it’s much more convenient to purchase online, especially when you can expect delivery on most items, usually on the same day.
In addition, though, FLT stock believes that its logistics platform can be used for multiple industries, including mail deliveries, healthcare and pharmaceuticals, oil and gas, and many more.
And because the company was built from the ground up with this vision in mind, Drone Delivery Canada has ambitions to expand its operations in multiple industries across the globe.
So, for now, I would be watching the stock to see what developments it can make in the near term. Because if FLT stock can rapidly grow its sales, it could quickly become a billion-dollar company even before 2025.