The $8 Stock With Multi-Year Federal Contracts

August 04, 2025

Hello Investor,

In a market chasing hype and headlines, this $8 stock is doing something rare:

Landing real government contracts (with multi-year potential) and still flying under the radar.

Meet Red Cat Holdings (RCAT) — one of the only U.S. drone manufacturers certified for secure federal use, and already delivering next-gen autonomous platforms to agencies like U.S. Customs and Border Protection (CBP).

🛡 Red Cat Holdings (RCAT): The Quiet Federal Contractor

RCAT is certified on the Department of Defense’s Blue UAS list — the shortlist of companies authorized to provide secure, American-made drones to U.S. military and government agencies.

This alone puts them miles ahead of commercial drone peers.

But more importantly — they’re already executing.

  • ✅ Live federal contracts in place with CBP

  • ✅ Approved to sell across DoD, DHS, and more

  • ✅ New autonomous drone platform rolling out now

All while the stock trades around $8.20 — with analyst targets pointing as high as $13+.

Unlike speculative AI or robotics names, Red Cat has already:

  • Delivered systems to federal agencies

  • Passed government security and compliance benchmarks

  • Laid the foundation for multi-year procurement cycles that only a handful of players can access

This is what early-stage defense adoption looks like — and most investors are still sleeping on it.

Why This Setup Matters Now

  • 🛰 A new drone launch could accelerate adoption across multiple agencies

  • 📜 Extension of existing CBP contracts or DoD orders would reprice the stock

  • 📈 Volume is building, and institutional eyes are slowly turning toward RCAT

It’s a simple equation:

Government-certified tech + recurring contracts + no Wall Street attention = asymmetric upside.

Want access to the rest of our watchlist — and alerts when institutional flow spikes, earnings surprise, or volume surges?

Stay early. Stay informed.

—StocksTrades.AI Newsletter

Disclaimer: This newsletter is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.