Draganfly (DPRO) Surges 9.5%: Is This an Indication of Further Gains?

Draganfly Inc. DPRO shares soared 9.5% in the last trading session to close at $10.13. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 96.8% gain over the past four weeks.

Draganfly is supported by strong tailwinds including rising defense demand for secure North American drones, growing adoption in public safety, agriculture, and infrastructure, and favorable U.S. policies limiting Chinese UAVs. Strategic contracts, AI-driven technology, and a shift toward recurring service revenues further strengthen its long-term growth outlook in multiple markets.

This company is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of +75.6%. Revenues are expected to be $1.36 million, down 1.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Draganfly, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DPRO going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Draganfly is part of the Zacks Computers - IT Services industry. Fair Isaac FICO, another stock in the same industry, closed the last trading session 18% higher at $1784.68. FICO has returned -0.5% in the past month.

For Fair Isaac, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $7.46. This represents a change of +14.1% from what the company reported a year ago. Fair Isaac currently has a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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