Ondas Wins Multi-Million-Dollar Israel Contract For Tactical Attack Drones

Ondas Inc. (NASDAQ:ONDS) shares are trading higher by more than 1% on Tuesday as the company is selected to build next-generation military tactical attack drones for Israel.

This positive movement comes despite a slight decline in the broader Technology sector, which is down 0.1%, and a marginal loss of 0.3% in the S&P 500.

Ondas Wins Israel Tactical Attack Drone Program

Ondas has been awarded a multi-million-dollar strategic program called “Digital Bat,” to develop and produce next-generation tactical attack drones.

This initiative is expected to leverage advanced software to enhance Israel’s military capabilities.

The program focuses on low-cost systems designed for scalable deployment across frontline units and evolving operational needs.

CEO Eric Brock said defense priorities are increasingly shifting toward affordable autonomous technologies that can be produced and deployed at scale. He cited the U.S. Drone Dominance Program, a $1.1 billion initiative focused on low-cost unmanned systems, as evidence of the trend and said Ondas is positioned to address similar demand across Israel, the U.S. and allied markets.

ONDS Technical Outlook: Key Levels And Momentum

The stock’s upward movement reflects investor optimism regarding the company’s role in this significant defense project, even as the overall market shows mixed signals today.

The stock is 19% above its 20-day simple moving average (SMA) of $7.95. However, the stock is facing some technical challenges, as the 50-day SMA is at $8.59, indicating a bearish crossover with the 20-day SMA below it. The MACD is currently above its signal line, suggesting that downside pressure is easing and momentum may be improving after a prior downswing.

• Key Resistance: $10.00 — a nearby level where rebounds can stall.
• Key Support: $9.00 — a nearby level where buyers previously stepped in.

Ondas Stock Outperforms The Technology Sector

Ondas is outperforming the Technology sector today, which is currently ranked 7 out of 11 sectors and has seen a decline of 0.12%. Despite this, Ondas’s performance is notable, as it is up more than 1% while the sector struggles. Over the past 30 days, the Technology sector has gained 2.66%, indicating a generally positive trend, although Ondas’s recent news may be propelling it even further.

ONDS Earnings Preview And Analyst Price Targets

The countdown is on: Ondas is set to report earnings on August 13, 2026 (confirmed).

• EPS Estimate: Loss of 7 cents (Up from Loss of 8 cents)
• Revenue Estimate: $67.71 million (Up from $6.27 million)
• Valuation: P/E of 103.3x (Indicates premium valuation)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $16.67. Recent analyst moves include:

• Roth Capital: Initiated with Buy (Target $13.00) (Aug. 11)
• Needham: Buy (Lowers Target to $19.00) (July 7)
• Needham: Buy (Maintains Target to $23.00) (May 19)

How Ondas (ONDS) Ranks On Value And Momentum

Below is the Benzinga Edge scorecard for Ondas, highlighting its strengths and weaknesses compared to the broader market:

• Value: 8.46 — Stock is showing strong value metrics relative to peers.
• Momentum: 93.51 — Stock is outperforming the broader market.

The Verdict: Ondas’s Benzinga Edge signal reveals a strong momentum-driven story, indicating that it is currently outperforming the market while also showing solid value metrics. This combination suggests a favorable outlook for investors looking for growth opportunities.

ONDS Top ETF Holdings And Passive Flow Risk

• Defiance Drone and Modern Warfare ETF (NYSE:JEDI): 7.64% Weight
• REX Drone ETF (NASDAQ:DRNZ): 12.39% Weight
• WisdomTree Physical AI, Humanoids, and Drones Fund ETF (NASDAQ:WDRN): 4.13% Weight

Significance: Because ONDS carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

ONDS Stock Rises After Israel Drone Contract News

ONDS Stock Price Activity: Ondas shares were up 1.24% at $9.39 on Tuesday, according to Benzinga Pro data.

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