Money Matters, Simplified.
4-Star Stocks Poised to Pop: AeroVironment
Fri, 03/19/2010 - 14:20 by Brian D. Pacampara
Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, unmanned aircraft systems maker AeroVironment (Nasdaq: AVAV) has earned a respected four-star ranking.
With that in mind, let's take a closer look at AeroVironment's business and see what CAPS investors are saying about the stock right now.
AeroVironment facts
Headquarters (Founded) | Monrovia, Calif. (1971) |
Market Cap | $511 million |
Industry | Aerospace and defense |
Trailing-12-Month Revenue | $226.2 million |
Management | CEO Timothy Conver (since 1994) |
Return on Equity (Average, Past 3 Years) | 11% |
Cash / Debt | $120 million / $0 |
Competitors | Boeing (NYSE: BA) |
Customers | Ford Motor (NYSE: F) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 507 members who have rated AeroVironment believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars 00100 and rknapton, both of whom are ranked in the top 10% of our community.
Just last week, 00100 listed several of the stock's positives: "Lots of cash on-hand. No debt. Very valuable IP in technology sector poised for tremendous growth. Strong candidate for take-over by a number of competing aviation companies vying for advantage in the unmanned air-vehicle space."
In an earlier pitch from last November, rknapton expands on AeroVironment as a good bet to take off:
You know those Army and Air Force commercials where they are flying unmanned aircraft systems through a computer screen? Well, this is a company that is benefiting largely since they develop and produce these UAS's. ... I don't see why the value of these to the military would not continue for years and years since they save lives and provide a tactical edge. ... Analyst are predicting 23% growth per annum for the next five years, so indeed if that type of growth happens, the stock may be a value here.
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