Did you know that San Diego, California is the drone capital of the United States? The proper name for a drone is unmanned aerial vehicles (UAV). Northrop Grumman Corporation (NYSE:NOC) is the maker of the Global Hawk surveillance drones which are manufactured in San Diego, California. The other large manufacturer of drones is General Atomics Aeronautical Systems Inc. Both of these companies employ thousands of people. Experts have stated that drone-related businesses in San Diego County generate as much as $2 billion in annual revenue and have created as many as 14,000 jobs. Believe it or not, due to classified projects these numbers could actually be much higher. The drone business is only expected to grow as companies such as Amazon.com Inc (NASDAQ:AMZN), Facebook, Inc. (NASDAQ:FB), and other tech firms plan on using drones in the near term future. The FAA estimates that 30,000 drones will be flying in the United States by the end of the decade, so this industry is just getting started.
Northrop Grumman Corporation (NYSE:NOC) stock looks very strong by forming a long sideways base on the weekly chart. This tells us that the institutional money is accumulating the stock at this time. Any close above the $126.00 level on volume is a likely breakout play for the NOC stock.