Drone stocks have left many investors underwater. The REX Drone ETF (NASDAQ: DRNZ) is down approximately 23% this year. But some individual names, such as Red Cat (NASDAQ: RCAT), are down much more. Those investors who haven't already taken a loss are wondering if they'll ever recoup their investment.
One option is to stay the course on the belief that future growth is a case of when, not if. Another strategy is to look at companies that make the components more than the finished product. But first, it's important to understand the state of the drone industry.