AVA

“One of the most interesting companies I am following in this industry,” Zach told me, “is a company called AeroVironment, Inc (AVAV:NASDAQ).”

“One of the company’s most intriguing products is a small, un-manned airplane that can be carried onto the battlefield. If soldiers want to know what is over the next ridge or in the next valley, they can launch the plane by hand. Sophisticated cameras and radio equipment relay information to headquarters and the front line.”

“This type of technology,” Zach further explains, “shows how the current military is thinking outside the box when it comes to warfare. The rules are changing as tactics and constraints continue to evolve. And new systems and technology will play a major part in equipping the military for future missions.”

I asked Zach if he would consider AVAV a buy right now.

“Not just yet,” he said. “The stock is a bit expensive here, as investors are rightfully excited about the prospects and the share price has gotten ahead of itself. But a pullback in the coming weeks or months could provide a solid entry-point for this long-term winner in the defense space.”

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