A Big Upgrade for American Science & Engineering

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The company spent months locked at a less-than-perfect four-star rank, but recently, more top-performing CAPS members have piled on to the bullish side of American Science & Engineering (Nasdaq: ASEI) to upgrade it to five stars. A total of 987 members have given their opinion on American Science & Engineering (AS&E), with many of them offering analysis and commentary explaining the recent optimism.

Continued demand for its proprietary X-ray inspection systems has meant more booked orders and solid financial results for AS&E. It reported fiscal first-quarter numbers in August that showed a 38% rise in revenue and a 173% jump in net income, while maintaining its backlog at more than $150 million for the fifth consecutive quarter. CAPS members anticipate that the company, as well as other firms like General Dynamics (NYSE: GD) and Northrop Grumman (NYSE: NOC), will benefit from U.S. government spending to protect the homeland in the years ahead, whether through X-ray systems or increasing informational technology expenditures.

While its X-ray screening systems are used to aide in security at U.S. ports, borders, and airports, the company also books a large percentage of its sales from international orders. Last year, it scored a $55 million deal in the United Arab Emirates and booked a couple of recent orders in the Middle East region. AS&E's not alone, either -- other companies like Lockheed Martin (NYSE: LMT), Raytheon (NYSE: RTN), Boeing (NYSE: BA), and Honeywell (NYSE: HON) are also finding increasing opportunity in the region. American Science & Engineering has made a habit of cranking out positive free cash flow in recent quarters, and CAPS members like its dividend and strong competitive position in its growing industry.

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