Red Cat provides products and services to the drone industry, including data storage, analytics, and related services. The company has an enterprise segment aimed at providing solutions to governments and militaries. It offers an ecosystem of drones, sensors, and services to support operations, especially with reconnaissance. Recently, the company partnered with Palantir to carry its software on RCAT’s unmanned aircraft in military applications.

As for earnings, RCAT’s second-quarter fiscal 2025 report showed a 24% dip in revenue, largely attributable to a production shift and focus on new products. However, the company ended the quarter with $5.7 million on hand and an additional round of financing secured. Also, the company has secured $14.7 million in commitments for its new line of drones.

It’s no wonder RCAT shares are up almost 1,600% in a year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Red Cat Attracting Big Money

Institutional volumes reveal plenty. In the last year, RCAT has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in RCAT shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of industrials names are under accumulation right now. But there’s a powerful fundamental story happening with Red Cat.

Red Cat Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, RCAT has had strong sales growth:

• 1-year sales growth rate (+286%)
• 3-year sales growth rate (+54.2%)

Source: FactSet

Also, RCAT’s debt/equity ratio is just +5.2%.

Now it makes sense why the stock has been powering to new heights. RCAT is building a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Red Cat just became a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It recently made the rare Top 20 report multiple times. The blue bars below show when RCAT was a top pick…and it could grow more:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Red Cat Price Prediction

The RCAT rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in RCAT at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.

This article was originally posted on FX Empire

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