Flir Systems looks bright
The company designs equipment that lets you see in the dark -- maybe a good thing in this market.
Flir makes thermal-imaging and broadcast camera systems for commercial and government use. The thermal-imaging systems detect infrared radiation, or heat, enabling the operator to measure small temperature differences and see objects in daylight or total darkness and through smoke, haze and most types of fog. These technologies sort of let you see in the dark and could be used by soldiers, hunters, or even law enforcement to find marijuana grow houses.
Some analysts say that since the U.S. forces in the Middle East are one of the largest customers, the stock's glory days are over. I'm taking an opposite view and think the company's equipment will have a lot of civilian applications because, as much as we'd like to believe it, the war on terrorists will never be over and neither will the war on drugs. The stock is trading at $30.49, and a stop loss at $28.98 -- which is the present 50-day moving average -- is advised in case I'm wrong.
The stock hit 12 new highs in the past 20 sessions and is 4 for 5 recently. The past month has seen a 14.29% price appreciation; 12 of the 13 Barchart technical indicators signal buy for an overall buy rating of 96%. The stock trades above its 20-, 50- and 100-day moving averages and has a Barchart Trend Spotter buy signal.
Investor confidence as measured on Motley Fool is extremely high, with the CAPS members voting 843 to 24 that the stock will beat the market. The more experienced All Stars agree by a vote of 217 to 2. Fool notes that the columnists they follow have written positive articles 11 to 1.
The fundamentals on this stock are very strong. The Wall Street brokerage firms like it and have 9 buy and 8 hold reports published. They expect sales to increase 13.60% this year and 13.40% next year. Double-digit earnings growth projections have also been published with EPS increases of 14.50% next year and a 5 year compounded EPS growth rate of 16.32% estimated.
I'm high on this stock and adding it to my Wall Street Survivor portfolio because:
- Barchart technical buy signals for a 96% overall buy signal
- New highs in better than 50% of the most recent trading sessions
- Extremely high investor sentiment
- Wall Street buy recommendations to their clients based on estimates of double digit increases in sales and earning
Disclosure: No positions in the stock mentioned at the time of publication
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Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
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