Tuesday, July 30, 2013

Why AeroVironment Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, unmanned aerial vehicle specialist AeroVironment (NASDAQ: AVAV  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at AeroVironment and see what CAPS investors are saying about the stock right now.

AeroVironment facts

Headquarters (founded)

Monrovia, Calif. (1971)

Market Cap

$457.5 million

Industry

Aerospace and defense

Trailing-12-Month Revenue

$240.2 million

Management

Chairman/CEO Timothy Conver

CFO Jikun Kim

Return on Equity (average, past 3 years)

8.2%

Cash / Debt

$148.6 million / $0

Competitors

Aker ASA

L-3 Communications

Lockheed Martin

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 649 members who have rated AeroVironment believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, Googlespooch, tapped AeroVironment as a particularly attractive opportunity:

Drones are only getting more popular. We already extensively use drones in our combat zones (they're becoming more heavily utilized every day in war). With these types of drones (their Hummingbird and other small ones), cities like NYC and other major cities could utilize these in police actions (and general government spying). Of course, whether or not I agree with the Big Brother State is one thing ... but it's another thing if it means money in your pocket. The company is trading at a decent valuation considering the prospective future for it and seems like an interesting play.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, AeroVironment may not be your top choice.

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