The tragic events at the Boston Marathon earlier this month have brought a variety of topics to the forefront of national discussion, and from an investment standpoint, stocks related to counter-terrorism, from homeland security inspection technology, to R&D-heavy defense contractors. We’ve discussed some of Jim Cramer’s smaller-name favorites in this space, but it’s time to broaden the lens, so to speak.
From Lockheed Martin Corporation (NYSE:LMT) and Raytheon Company (NYSE:RTN)’s global exposure to the defense industry, to TASER International, Inc. (NASDAQ:TASR)’s focus on electrical weapons, there are plenty of players here, and we’ll take you through the top 15 anti-terror stocks you should consider for your portfolio.
Photo Credit: DVIDSHUB
Since 9/11, the U.S. government has more than doubled its spending on defense, which amounted to about $700 billion in 2011 alone. While the efforts of federal, state, and local governments to control terrorism cannot be underestimated, there are many companies that are in the business of providing anti terror devices and services. The publicly traded companies listed in the following slides produce equipment and services related to domestic and national security, and look set to benefit from this trend.
It’s worth mentioning that companies with a focus on cybersecurity have an added benefit, as the DoD’s budget for these services looks the most bullish, as there is uncertainty over future cuts in other areas. Let’s find out some big and not so big names in defense, that should be set to benefit from an increased focus on anti-terrorism services in the U.S.
Lockheed Martin Corporation (NYSE:LMT)
Market Cap: $30.72 billion, Forward PE: 10.58 , ROE: 527.88%
Headquartered in Bethesda, MD, Lockheed Martin Corporation (NYSE:LMT) has an employee base of 120,000 people globally engaged primarily in the research, development , design, production and integration of advanced technology systems, products and services.
Raytheon Company (NYSE:RTN)
Market Cap: $18.72 billion, Forward PE: 10.35, ROE: 23.00%
Raytheon Company (NYSE:RTN) is a supplier of electronics, mission system integration, and several other instruments for sensing, effects, command, control, communication, and intelligence systems. Raytheon Company (NYSE:RTN), together with its subsidiaries, operates in the U.S. as well as in other countries. The company employs over 67,800 people.
See the final 13 companies on the following pages:
Northrop Grumman Corporation (NYSE:NOC)
Market Cap: $16.84 billion, Forward PE: 9.69, ROE: 19.93%
Having more than 68,000 employees, Northrop Grumman Corporation (NYSE:NOC) is engaged in producing systems, products, and solutions for aerospace, electronics, and technical service fields for government as well as for commercial customers worldwide. Northrop Grumman Corporation (NYSE:NOC)’s aerospace systems segment is involved in designing, developing and production of manned aircraft, spacecrafts, high-energy laser systems, and other products and systems.
Tyco International Ltd. (NYSE:TYC)
Market Cap: $14.64 billion, Forward PE: 14.75, ROE: -2.76%
Tyco International Ltd. (NYSE:TYC) is involved in the life safety, fire detection, security products and services worldwide. With 70,000 employees, Tyco International Ltd. (NYSE:TYC) designs, sells, installs and provide service for security systems against a variety of hazards among which intrusion, react to movement, control access, fire, smoke, flooding, etc.
L-3 Communications Holdings, Inc. (NYSE:LLL)
Market Cap: $7.40 billion, Forward PE: 9.89, ROE: 12.85%
The subsidiary of L-3 Communications Holdings, Inc. (NYSE:LLL), L-3 Communications Corporation, is specialized in command, control, intelligence, surveillance and other systems. The company is also engaged in aircraft upgrade and maintenance. Also, L-3 Communications Holdings, Inc. (NYSE:LLL) via its subsidiary is involved in providing national security solutions in the U.S and internationally.
FLIR Systems, Inc. (NASDAQ:FLIR)
Market Cap: $3.59 billion, Forward PE: 13.76, ROE: 14.18%
FLIR Systems, Inc. (NASDAQ:FLIR) activates in five domains: Thermal Vision & Measurement, Raymarine, Surveillance, Detection, and Integrated Systems. Via these segments, FLIR Systems, Inc. (NASDAQ:FLIR), is specialized in design, production and selling o thermal imaging systems on markets around the world.
Clean Harbors Inc (NYSE:CLH)
Market Cap: $3.43 billion, Forward PE: 16.96, ROE: 11.12%
Clean Harbors Inc (NYSE:CLH) is a company which offers solutions for environmental, energy, and industrial services. Via its subsidiaries, the company operates on markets in the U.S. Puerto Rico, Canada and other countries. Clean Harbors Inc (NYSE:CLH) employes more than 13,000 people and is engaged in four segments including Oil and Gas Field Services, Technical Services, Field Services, and Industrial Services.
Atmel Corporation (NASDAQ:ATML)
Market Cap: $2.95 billion, Forward PE: 12.23, ROE: 2.93%
Employing 5,000 people, Atmel Corporation (NASDAQ:ATML) is involved in the field of semiconductor integrated circuit products: design, developing, production, and marketing. With operations in the U.S, Asia, Europe, South Africa, Central and South America, Atmel Corporation (NASDAQ:ATML)’s segments include: Microcontrollers, Nonvolatile Memories, Radio Frequency and Automotive, Application Specific Integrated Circuit.
Cepheid (NASDAQ:CPHD)
Market Cap: $2.47 billion, Forward PE: 154.08, ROE: -8.73%
Cepheid (NASDAQ:CPHD) is a company specialized in molecular diagnostics, it develops and produces systems for testing in the clinical market. According to Yahoo! Finance, Cepheid (NASDAQ:CPHD)’s systems enable molecular testing for organisms and genetic-based diseases by automating manual laboratory procedures. The company offers GeneXpert system that integrates sample preparation in addition to DNA amplification and detection; and SmartCycler system, which integrates DNA amplification and detection to allow rapid analysis of a sample.
Nice Systems Ltd (ADR) (NASDAQ:NICE)
Market Cap: $2.11 billion, Forward PE: 12.11, ROE: 5.78%
Nice Systems Ltd (ADR) (NASDAQ:NICE) has over 3,000 employees and offers solutions that interpret interactions and transactions, measure insights to deliver impact in real time. Nice Systems Ltd (ADR) (NASDAQ:NICE) has several enterprise customer interaction solutions like NICE SmartCenter, or NICE Trading Suite.
OSI Systems, Inc. (NASDAQ:OSIS)
Market Cap: $1.11 billion, Forward PE: 15.37, ROE: 11.05%
OSI Systems, Inc. (NASDAQ:OSIS) is engaged in the field of electronic systems and components for homeland security, healthcare, defense, and aerospace markets around the world. OSI Systems, Inc. (NASDAQ:OSIS)’s segments are Security, Healthcare, and Optoelectronics.
Analogic Corporation (NASDAQ:ALOG)
Market Cap: $958.59 million, Forward PE: 22.44, ROE: 7.49%
Specialized in the field of medical imaging and security systems and subsystems, Analogic Corporation (NASDAQ:ALOG), provides products for healthcare and airport security markets in different countries. Among, Analogic Corporation (NASDAQ:ALOG)’s products are technology in the fields of computed tomography, magnetic resonance imaging, digital mammography, ultrasound, and automatic explosives detection systems for airport security.
Mantech International Corp (NASDAQ:MANT)
Market Cap: $934.57 million, Forward PE: 11.68, ROE: 8.43%
Mantech International Corp (NASDAQ:MANT) is a company that offers technologies and solutions for critical national security programs in the U.S and other countries. The fields in which Mantech International Corp (NASDAQ:MANT) operates include command, control, intelligence, surveillance, secrecy management and security infrastructure services.
American Science & Engineering, Inc. (NASDAQ:ASEI)
Market Cap: $487.12 million, Forward PE: 24.29, ROE: 7.54%
Provider of X-ray inspection as well as other detection products for homeland security, and force protection, American Science & Engineering, Inc. (NASDAQ:ASEI) and its subsidiaries operates on the markets in the U.S and other countries. The products of American Science & Engineering, Inc. (NASDAQ:ASEI) include cargo inspection systems, and comprising non-intrusive inspection products, which serve for screening of trucks, cars, cargo containers, etc.
TASER International, Inc. (NASDAQ:TASR)
Market Cap: $412.77 million, Forward PE: 24.41, ROE: 17.36%
TASER International, Inc. (NASDAQ:TASR) is a supplier of conducted electrical weapons, which can serve in law enforcement, federal, military, corrections, private security as well as personal defense. The products of TASER International, Inc. (NASDAQ:TASR) include TASER X2, TASER X3, TASER X26 and others.
Disclosure: none
