Lockheed Martin Corporation (LMT), AeroVironment, Inc. (AVAV): An Update on the Defense Industry

On the plus side Aero has no debt, a market cap of $444 million with $134.8 million in cash, and is expecting to see 22% EPS growth in the next year. Be wary of these kind of setbacks, though, as they can be major hurdles for smaller players to get around.

Aero makes more than UAS drones–it also makes charging stations for electric vehicles in the US. Currently it is making a EV charging highway down the West Coast in the US to take advantage of the emerging electric vehicle market. Here is an article from the Motley Fool that talks about Aero’s move into this market.

Final Thoughts

With the wind down of the war in Afghanistan and sequestration some might think that the defense industry has no room left for growth. But you simply have to look at the JSF’s F-35s to see that that isn’t true. Combined with Japan potentially building up its army to combat against the rise of China’s military, the defense sector still has some growth left.

Callum Turcan has no position in any stocks mentioned. The Motley Fool recommends AeroVironment, Inc. (NASDAQ:AVAV). The Motley Fool owns shares of AeroVironment and Lockheed Martin Corporation (NYSE:LMT).

The article An Update on the Defense Industry originally appeared on Fool.com.

Callum is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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