10 Best Prison and Law Enforcement Stocks To Invest In

7. Federal Signal Corporation (NYSE:FSS)

Number of Hedge Fund Holders: 32

Federal Signal Corporation (NYSE:FSS) is an American manufacturer that specializes in innovative equipment, signaling products, and communication and security systems. The company designs, manufactures, and supplies its products and total solutions that serve municipal, governmental, industrial, and commercial customers. The company’s Safety and Security Systems Group provides comprehensive solutions used by law enforcement, fire rescue, and emergency medical services to protect people and property. Federal Signal Corporation (NYSE:FSS) is known for its advanced police car lights, sirens, push-bumpers, and tire deflation devices, making it a key player in promoting safety for first responders and the communities they serve.

In the third quarter of 2024, the company reported net sales of $474 million, an increase of 6% from the previous year. Operating income rose by 21% to $75.9 million, while net income reached $53.9 million, translating to a diluted earnings per share (EPS) of $0.87, up 23% year-over-year. The Safety and Security Systems Group performed well, achieving a 4% increase in sales with an adjusted EBITDA margin of approximately 23%. Federal Signal Corporation’s (NYSE:FSS) backlog grew to $1.03 billion, reflecting strong demand for its products. In Q3, the company also generated $69 million in cash from operations, allowing it to pay down debt and maintain a solid financial position.

In October, Federal Signal Corporation (NYSE:FSS) completed the acquisition of Standard Equipment Company, a leading distributor of specialty maintenance and infrastructure equipment for municipal and industrial markets. This strategic move will expand Federal Signal Corporation’s (NYSE:FSS) aftermarket services and target new customer segments. With strong financial performance and growth strategies in place, Federal Signal Corporation (NYSE:FSS) represents a promising investment opportunity in the law enforcement sector.