The ability of drone maker Ondas (ONDS) to benefit from multiple powerful trends, combined with the company’s rapid growth, makes ONDS stock appealing. Further, ONDS’s partnership with Palantir (PLTR) validates its technology to some extent and should make its products more attractive. Finally, most Wall Street analysts are very bullish on ONDS stock. In light of these points, I believe growth investors with a high risk tolerance should consider buying the shares.
A Likely Beneficiary of Strong Trends and Rapid Growth
Ondas’ Israel-based subsidiary, Airobotics, has developed a counter-drone system called Irone Drone Raider. The product has already been adopted by “a major international airport,” and a NATO country has placed “a … multi-million-dollar order” for the system.
What’s more, Ondas CEO Eric Brock, speaking on its first-quarter earnings call held on May 14, named Iron Drone as one of the offerings that had made “particularly strong contributions” during the quarter. Given these developments, it appears that Iron Drone could be very effective in combating drones and has at least a great deal of potential.
And with many nations, including the U.S. and Airobotics’ home country of Israel, urgently looking for cost-effective ways of combating drones, Iron Drone Raider could become a very big revenue generator for Ondas.
Meanwhile, the demand for the company’s airborne missile defense system, sold by its BIRD Aerosystems subsidiary, “continues to strengthen,” Brock reported. That trend may accelerate as Golden Dome ramps up. Finally, with the Trump administration looking to spend a huge $39.2 billion on autonomous drones during the upcoming fiscal year, Ondas’ autonomous-drone business should get a big lift in the medium-to-long term.
On the growth front, the firm’s revenue soared 10-fold last quarter compared with the same period a year earlier. While the lion’s share of that surge was likely driven by the firm’s acquisitions, analysts, on average, expect its revenue to jump 75% in 2027. That may indicate that its growth, excluding acquisitions, will be strong in 2027.
A Positive Alliance With Palantir and the Street’s Bullishness
In March 2025, Ondas announced that it would utilize Palantir’s Foundry system to obtain “AI-driven insights” and to enhance its overall operations. More positive is the alliance that Palantir unveiled with Ondas and World View, which develops high-altitude balloons used in intelligence, surveillance, and reconnaissance (ISR). Under the agreement, announced in March 2026, the firms will work together to develop AI-powered ISR capabilities.
These capabilities may make Ondas’ drones significantly more appealing with their ISR and AI abilities. And Palantir’s willingness to partner with Ondas suggests that PLTR views Ondas’ offerings positively, since PLTR likely would not want to be associated with a company that sells subpar products. Ondas completed its acquisition of World View in April 2026.
And boding well for the outlook of ONDS stock, seven of nine analysts who cover the company rate it a Strong Buy, and one rates it a Moderate Buy.
Valuation and the Bottom Line on ONDS stock
Based on analysts’ average 2027 revenue estimate, ONDS stock is trading at an attractive forward price-to-sales ratio of 5.75x. Still, since it’s relatively new to the defense business and has to integrate its acquisitions effectively, it poses a significant risk. Therefore, only growth investors with high risk tolerances should buy its shares.
*This article is intended to be informational only; it is not financial advice.
