Drone Delivery Canada (TSXV:FLT) Stock: Welcome to the Future

The Canadian tech sector has had some fantastic entrants to the TSX over the years. Every Canadian investor is most probably aware of the Shopify success story. The darling Canadian tech stock has become one of the main growth drivers for the Canadian equity market.

Lightspeed POS has been another major revelation for the tech sector. It has had a successful run on the TSX in the short time it has been around, and the stock will likely surge further in the coming decade.

Drone Delivery Canada (TSXV:FLT) is the latest multi-bagger on the stock market right now. The Vaughan-based company that designs, develops, and implements commercial drone-based logistics systems in Canada could become the next big thing on the TSX.

I will discuss the market potential and Drone Delivery’s place in the changing economic environment to help you understand whether it is worth adding to your investment portfolio.

The potential for drone deliveries

Online shopping adoption skyrocketed in 2020 due to people being mostly confined in their homes. People turned to e-commerce platforms like never before to meet their needs. The sudden uptick in demand clearly showed in the growing revenues for companies like Shopify and Lightspeed. However, many investors have overlooked the potential for the logistics industry that facilitates all the deliveries.

With billions of dollars and experience, the global supply chain has become remarkably efficient. However, the last-mile delivery system still seems to be struggling to keep pace with the growing demand. Receiving goods from the closest distribution center to your home could become much faster.

Companies like Drone Delivery Canada are well positioned to fulfill this demand.

The market potential and Drone Delivery

The pressure on delivery services has been immense due to the surge in online shopping. Drone Delivery has the opportunity to capitalize on the demand by increasing its drone fleet solutions for deliveries.

Facts and Factors released a report on the drone package delivery market late in 2020. The report indicated that the market was worth an estimated US$530 million in 2019. The company estimated that the market has the potential to be worth US$6.05 billion in the next five years. It would translate to a massive 45% compounded annual growth rate between 2020 to 2027.

Foolish takeaway

Drone Delivery Canada is an ideal stock to meet the demands. The stock is trading for $2 per share at writing. Its valuation might not seem high, but you should know that its valuation is up more than 280% since its March 2020 bottom. The stock presents a massive upside potential in a growing industry, and Canadian investors eager to capitalize on its growth might want to consider investing in Drone Delivery Canada.

Shopify has already proven its growth potential, and Lightspeed is also on its way. Drone Delivery could be worth monitoring for investors seeking the next Canadian high-growth stock over the next few months.

Speaking of high-growth tech stocks like Shopify…

This Tiny TSX Stock Could Be the Next Shopify

One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting…
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago – before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!

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More reading

  • Got $2,000? Here Are 2 Top Canadian Stocks to Buy Today!
  • Drone Delivery Canada Stock: The Next Shopify?

Fool contributor Adam Othman owns shares of Shopify. Tom Gardner owns shares of Shopify. The Motley Fool owns shares of and recommends Shopify and Shopify. The Motley Fool owns shares of Lightspeed POS Inc.

The post Drone Delivery Canada (TSXV:FLT) Stock: Welcome to the Future appeared first on The Motley Fool Canada.

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