Why did Zacks issue a Sell on ONDS stock?

Zacks flagged valuation risk after a near 600% rally, citing about 35x forward price‑to‑sales, rising operating costs, and heavy reliance on the OAS drone unit. In short, expectations look very high. Any slowdown in orders, revenue conversion, or margins could lead to sharp multiple compression and downside volatility for investors.

Is ONDS stock overvalued after the surge?

By trailing metrics, yes. Price‑to‑sales runs above 200x and price‑to‑book is near 7.4x, while EPS and cash flow remain negative. A premium can persist if growth accelerates, but without clear progress toward profitability, the current valuation leaves little room for error and raises drawdown risk.

What near‑term catalysts could move ONDS stock?

Two stand out. The January 16 investor day could bring roadmap details, KPIs, and revenue cadence. The March 11 earnings report will test order conversion and margins. Updates on OAS deployments, backlog quality, and guidance versus Street targets near $11 to $13 may drive meaningful moves either way.

How should traders approach ONDS stock now?

Use smaller positions, defined stops, and avoid chasing strength. Watch $11 support and $13.90 to $15.10 resistance. A consolidation with RSI cooling below 60 could set a better entry. Momentum above resistance on strong volume can favor a breakout trade, but weak breadth argues for patience.

Global Market Insights

ONDS Stock Today: January 9 — Zacks Sell Call After 600% Rally

ByDanny Kontos January 10, 2026January 10, 2026

ONDS stock is front and center today after a nearly 600% six‑month surge and a fresh Sell call from Zacks. The firm cites a roughly 35x forward price‑to‑sales, rising expenses, and reliance on its OAS drone unit. ONDS stock trades at $12.53, down 10.56%, with a $5.04 billion market cap. The 52‑week range is $0.57 to $15.10. A ~$10 million order haul and a January 16 investor day keep expectations high. See rally context here source.