Why American Science & Engineering's Shares Jumped

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of American Science & Engineering (Nasdaq: ASEI  ) shot as much as 12% higher today after the company landed a big contract.

So what: According to reports, the TSA awarded the company a $245 million contract for advanced imaging technology. The company hasn't made an official announcement, but the contract has been published, and I would expect something official before the open of trading tomorrow.

Now what: This is a huge deal for the company, because this one contract is larger than its revenue for all of last year. I think this is very bullish for the company, but it needs to turn this contract into bottom-line results for it to be a long-lasting pop. Shares trade at 30 times forward estimates, so there is already a lot of optimism priced into the stock.

Interested in more info on American Science? Add it to your Watchlist by clicking here.

Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw.

Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2021859, ~/Articles/ArticleHandler.aspx, 10/25/2016 1:34:49 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,190.16 -32.87 -0.18%
S&P 500 2,145.04 -6.29 -0.29%
NASD 5,284.99 -24.84 -0.47%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
ASEI $0.00 Down +0.00 +0.00%
American Science a… CAPS Rating: **