Ondas stock price continued its strong rally this week, soaring to its highest level since February 2021. It has been one of the best-performing companies in Wall Street, with its stock soaring by 2,430% from its lowest level in 2024, and its market capitalization moving to over $5.2 billion.
Why Ondas stock price has soared
Ondas stock price continued its strong rally after a report showed that the Israeli Ministry of Defense had selected its solutions to deal with its border security.
The government is working on the development and deployment of ‘Drone Hives’ made up of autonomous unmanned aircraft. Airobotics, its subsidiary, will supply these drones. It is also highly likely that its other solutions, like Iron Dome and Roboteam will have a role in this initiative.
Ondas stock also jumped after Donald Trump announced that he would be seeking more money for the military. He hopes to raise spending from nearly $1 trillion today to over $1.5 trillion, much higher than other countries, combined.
Trump hopes that his tariff revenue will help to offset the debt increase over time. Still, it is unclear whether the House of Representatives and the Senate will pass the bill. What is clear, however, is that the military may see a big increase in spending over time.
One area expected to keep growing is in the drone segment, where the company shines. As such, the company will likely see more demand from the United States government. Besides, Trump has put restrictions on foreign drones.
Ondas stock also jumped after the management announced it would change its name from Onda Holding to Ondas Inc and move its business from California to Florida.
The company also published encouraging financial results. Its numbers showed its revenue rose six times to $10.1 million, helped by its OAS business and its acquisitions.
Wall Street analysts are optimistic that the growth momentum will continue. For example, the average estimate is that its revenue jumped by 324% in the last quarter to $17.4 million, with its annual figure coming in at $38 million, up by 430% YoY. It will then make $140 million this year, a 266% annual increase.
At the same time, analysts believe that the earnings per share (EPS) will improve to a 19-cent loss this year, followed by 1 cent this year. This growth will likely accelerate in the coming weeks or years.
Additionally, there is optimism that the company’s balance sheet means that it will not need to raise cash again through share sales. It ended the last quarter with $855 million in cash, which it raised through four equity offerings.
The risk, however, is the company’s business has become highly overvalued as its market capitalization has jumped to over $5 billion.
Ondas share price technical analysis
Ondas stock chart | Source: TradingView
The weekly chart shows that the Ondas stock price has been in a strong uptrend in the past few months, moving from a low of $0.2950 in 2024 to the current $14.
It recently moved above the important resistance level at $11.7, its highest level in October this year. Moving above that level means that the stock invalidated the bearish double-top pattern, one of the riskiest signs in technical analysis.
The stock moved above all moving averages and their Supertrend indicator. However, the Relative Strength Index (RSI) has moved to the overbought level.
Therefore, the most likely scenario is where the stock retreats and retests the support level at $11.71. Such a move will be a sign of continuation, which will push the stock to $20 later this year. However, there is a risk that it will retreat later this year
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