This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Homeland Security Stocks That Make Safe Buys

AeroVironment

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

In the world of homeland security, much of what takes place to keep us safe occurs outside of our borders, where the U.S. may or may not have a presence. To keep an eye out for terrorists, the military has greatly increased the use of predator drone aircraft. These unmanned vehicles are difficult or impossible to detect, allowing for missions in air space that does not belong to us.

AeroVironment (AVAV - Get Report), which designs, develops, produces and supports unmanned aircraft missions, is a key player in a fast-growing business. This relatively new publicly traded company came to market in 2007, and the challenging economic environment since its initial offering has kept its valuation in check. At the current price of about $27.88 per share, the stock is only slightly above the $24 it fetched on its initial day of trading. The stock may not be doing much since 2007, but operating performance has been stellar. In each of the last four quarters, the company has beaten average Wall Street estimates for profits. Analysts expect double-digit profit growth from this year to the next. With shares trading for 21 times current fiscal-year profit estimates, investors can still buy this homeland growth story at a reasonable price.

In the future, I would expect orders for drone aircraft to explode as orders for traditional military craft decline. AeroVironment is poised to benefit from this simple budgetary shift to how the U.S. protects the homeland.

To see these stocks in action, visit the 5 Homeland Security Stocks to Buy Safely.

-- Written by Jamie Dlugosch in Minneapolis.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jamie Dlugosch is a founder and contributor to
MainStreet Investor and MainStreet Accredited Investor . Formerly, he was president and CEO of Al Frank Asset Management. He has contributed editorially to The Rational Investor , The Prudent Speculator , Penny Stock Winners and InvestorPlace Media .
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AVAV $29.06 11.43%
ASEI $43.88 0.16%
CACI $81.68 0.98%
FLIR $31.06 0.78%
IDSY $5.87 -3.80%

Markets

DOW 17,757.91 +138.40 0.79%
S&P 500 2,077.42 +14.31 0.69%
NASDAQ 5,013.1230 +26.2560 0.53%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs