U.S. Markets open in 5 hrs 22 mins

Here's Why Raven (RAVN) is an Attractive Pick Right Now

Zacks Equity Research
1 / 2

Southside Bancshares (SBSI) Q3 Earnings Preview: How Are Events Shaping Up?

Southside Bancshares (SBSI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Raven Industries, Inc. RAVN has managed to impress investors with its recent growth momentum driven by its broad-based growth across its segments and solid market potential for its core technology. The company is also gaining traction from its Aerostar segment, which comprise stratospheric balloons, radar systems, and aerostats. Buoyed by the robust performance, Raven expects to beat prior-year quarter’s sales and adjusted operating income in fiscal 2019.

Moreover, shares of Raven have outperformed its industry in the past six months, reflecting investor optimism surrounding the stock. While the company has gained 9.9%, the industry declined 9.2%. Raven also enjoys a strong foothold across markets and has several growth drivers working in its favour.

 

Given this backdrop, let’s delve deeper to find out the key factors that make this Zacks Rank #1 (Strong Buy) company an attractive proposition for investors right now.

Factors to Consider 

For fiscal 2019, Raven expects to outpace sales and adjusted operating income figures registered in the prior year. In applied technology, the company is increasing market share through technological advancements. Through sustained funding of key R&D projects over the last few years, the company also introduced two significant products — Hawkeye nozzle control system and next-generation rate control system. Notably, these products are getting favorable customer feedback and generating strong demand, thus adding to the company’s strength.

Moreover, Raven’s focus on launching products and technologies enables it to gain a competitive advantage over peers. Of late, the company’s new products are consistently gaining traction, particularly through original equipment manufacturer (OEM) channel. Also, it remains optimistic about the market opportunity for its core technology. This apart, Raven is evaluating strategic acquisitions and continues investing in additional manufacturing capacity, research and technology development activities that would augment core product lines.

Meanwhile, the company’s Aerostar segment continues to grow across many of its platforms including stratospheric balloons, radar systems and aerostats.  Notably, over the past few quarters, the pipeline of business opportunities for the company’s Aerostar segment has improved significantly. For instance, in first-quarter fiscal 2019, sales at the segment recorded an increase of 13.5% year over year driven by growth across core product lines. The company continues to advance in building the market for its stratospheric technology as well.

Furthermore, the company’s considerable advancements in balloon duration continue to support the progress on Google's Project Loon and NASA's mission are impressive. In addition, Raven is developing new stratospheric balloon solutions for other new customers. In fact, its pipeline is much stronger nowadays, mirroring improved sales for fiscal 2019 and beyond.

Other Stocks to Consider

Some other top-ranked stocks from the same space are Federal Signal Corporation FSS, Crane Company CR and Honeywell International Inc. HON. All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Federal Signal delivered an average positive earnings surprise of 16.1% in the trailing four quarters, surpassing estimates in each.

Crane has an excellent earnings surprise history, with an average positive surprise of 2.1%, exceeding estimates in each of the trailing four quarters.

Honeywell pulled off an average positive surprise of 1.5%, surpassing estimates in each of the trailing four quarters.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Honeywell International Inc. (HON) : Free Stock Analysis Report
 
Raven Industries, Inc. (RAVN) : Free Stock Analysis Report
 
Federal Signal Corporation (FSS) : Free Stock Analysis Report
 
Crane Company (CR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

  • Turkey to Publicize Details From Its Investigation Into Jamal Khashoggi's Killing
    World
    Time

    Turkey to Publicize Details From Its Investigation Into Jamal Khashoggi's Killing

    The announcement on Sunday by Turkish President Recep Tayyip Erdogan that he will “go into detail” about the Khashoggi case in a speech in parliament heightened hopes for some clarity in a case that has been shrouded in mystery, conflicting accounts and shocking allegations since Khashoggi, a critic of Prince Mohammed bin Salman, disappeared after entering the consulate on Oct 2. Erdogan spoke after Saudi Arabia, in a statement early Saturday, finally acknowledged that 59-year-old Khashoggi had died in the consulate, though its explanation that he was killed in a “fistfight” was met with international skepticism and allegations of a cover-up designed to absolve Prince Mohammed of direct responsibility.

  • The ‘smart money’ says it’s time to buy the Chinese internet giants and the U.S. FAANGs
    News
    MarketWatch

    The ‘smart money’ says it’s time to buy the Chinese internet giants and the U.S. FAANGs

    When the media and investors turn negative on stocks but the “smart money” is bullish, it’s a good time to think about buying. After all, exactly what is the smart money, and how do you know? Lately, several fund managers who pass this test have been pounding the table on Chinese internet names.

  • Can AMD Stock Go on a Bull Run Once Again?
    Business
    Motley Fool

    Can AMD Stock Go on a Bull Run Once Again?

    Advanced Micro Devices (NASDAQ: AMD) shares have fallen off a cliff over the past month, as investors are probably concerned about whether it can sustain its rally in the face of a fading tailwind and rising competition. The chipmaker has minted a lot of money thanks to cryptocurrency mining, but that catalyst is fizzling out and rival NVIDIA (NASDAQ: NVDA) has launched a new generation of graphics chips to reclaim its lost market share. AMD blames weak GPU sales to the cryptocurrency market for this slowdown, but recent developments indicate that it could easily surpass the low-balled guidance.

  • Which Canadian Marijuana Stock Will Enjoy a Bigger Bump From Its NYSE Listing -- Aphria or Aurora?
    Business
    Motley Fool

    Which Canadian Marijuana Stock Will Enjoy a Bigger Bump From Its NYSE Listing -- Aphria or Aurora?

    Maybe Wall Street should be called "Weed Street." Big Canadian marijuana grower Canopy Growth listed its stock on the New York Stock Exchange (NYSE) earlier this year. Aurora Cannabis (NASDAQOTH: ACBFF) begins trading on the NYSE on Tuesday, Oct. 23. Aphria (NASDAQOTH: APHQF) filed last week to list its stock on the NYSE.

  • Rep. Gabbard on how US should respond to Khashoggi's death
    World
    Fox Business Videos

    Rep. Gabbard on how US should respond to Khashoggi's death

    Saudi prosecutors say 18 Saudis are being held as suspects in Jamal Khasoggi's death; reaction from Democratic Rep. Tulsi Gabbard.

  • This Warren Buffett Stock Is Dirt Cheap Right Now
    Business
    Motley Fool

    This Warren Buffett Stock Is Dirt Cheap Right Now

    Warren Buffett has amassed a large portfolio of bank stocks for Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) with major holdings in Bank of America (NYSE: BAC), Wells Fargo (NYSE: WFC), and American Express (NYSE: AXP), just to name a few of the most well-known and largest investments. Synchrony is a major issuer of store-branded credit cards and also operates a rapidly growing online banking platform.

  • Say Goodbye to Amazon's Blockbuster Revenue Growth
    Business
    Motley Fool

    Say Goodbye to Amazon's Blockbuster Revenue Growth

    Throughout its history, Amazon (NASDAQ: AMZN) has possessed a certain ingenuity in finding new ways to grow. Just when the company seems to be maturing in one sector, it finds a new one to jump into. Since the company's early history, its quarterly revenue growth has cycled between 15% and 50%, depending on where it is in the growth cycles in the above businesses.

  • Better Buy: Ford Motor Company vs. General Motors
    Business
    Motley Fool

    Better Buy: Ford Motor Company vs. General Motors

    Both Ford Motor Company (NYSE: F) and General Motors (NYSE: GM) have been investor favorites in the not-too-distant past, and both pay good dividends. Ford has a slew of new products on the way, starting with a brand-new Ranger pickup early next year. Ford and GM have both had a rough year in the stock market.

  • Religious Extremists Got Their Justice. Now They're Going To Strip LGBTQ Rights.
    Politics
    HuffPost Opinion

    Religious Extremists Got Their Justice. Now They're Going To Strip LGBTQ Rights.

    While much of the country was in an uproar over the nomination (and confirmation) of Brett Kavanaugh to the U.S. Supreme Court, anti-LGBTQ religious extremists in Texas filed a federal lawsuit against the city of Austin targeting its anti-discrimination ordinance protecting LGBTQ people, claiming it infringes on their religious liberty. Like many municipalities and less than half of U.S. states, Austin protects gay, lesbian, bisexual and transgender people broadly from discrimination in housing, employment and public accommodations.

  • Don’t cheat yourself with the 4% rule
    Business
    MarketWatch

    Don’t cheat yourself with the 4% rule

    If you’re planning for retirement, you’re probably thinking about how much you’ll need, how long the money will last, and how much you can safely take out each year. You recognize that in retirement there will be a balancing act between spending on current needs while also preserving enough for your later years. Instead, all-too-often, retirees use simplified rules of thumb to determine how much to take out each year.

  • Better Buy: Aurora Cannabis Inc. vs. Canopy Growth Corporation
    Business
    Motley Fool

    Better Buy: Aurora Cannabis Inc. vs. Canopy Growth Corporation

    Canadian marijuana producers have entered a new era. After several years of supplying medical marijuana nationwide, they have begun moving into Canada's recreational marijuana market, which opened on Oct. 17. Canopy's share price has soared three times higher than Aurora's has.

  • Saudi Summit Loses Its Swagger as Elites Question Kingdom
    World
    Bloomberg

    Saudi Summit Loses Its Swagger as Elites Question Kingdom

    Hosted by the kingdom’s sovereign wealth fund, the three-day conference that kicks off in Riyadh on Tuesday was meant to showcase the opportunities created by reform efforts to break the economy’s dependence on oil and unveil billion-dollar contracts in front of the world’s business elite. Saudi Arabia and Crown Prince Mohammed bin Salman -- who posed for selfies with hundreds of delegates at last year’s conference -- will be keen to show that it’s business as usual in the kingdom, even as European leaders and President Donald Trump demand more information on how the Washington Post columnist was killed at its consulate in Istanbul. No-shows from the likes of Deutsche Bank AG’s Christian Sewing, JPMorgan Chase & Co.’s Jamie Dimon and BlackRock Inc. Chief Executive Officer Larry Fink will deal a blow to the 33-year-old leader and the kingdom, which has built close ties with Wall Street executives and relies largely on global banks to finance its ambitious plans.

  • Democrats Hold a 9-Point Lead in Midterms. But Trump's Job Rating Is at an All-Time High
    Politics
    Fortune

    Democrats Hold a 9-Point Lead in Midterms. But Trump's Job Rating Is at an All-Time High

    Democrats hold a nine-point lead going into the midterm elections Nov. 6, but President Donald Trump’s job rating is at an all-time high, according to a new NBC News/Wall Street Journal poll. The Democrats’ nine-point lead is among likely voters, who prefer Democratic Congressional candidates over Republicans by that margin. Trump’s job rating among registered voters between Oct. 14 and 17 was at 47% approve to 49% disapprove, compared to 44% approve and 52% disapprove a month earlier.

  • 3 Dividend Stocks That Pay You More Than Coca-Cola Does
    Business
    Motley Fool

    3 Dividend Stocks That Pay You More Than Coca-Cola Does

    With a better than 50-year history of paying dividends, Coca-Cola (NYSE: KO) is seen as an icon of stable, strong, secure payouts. Although Coke and its dividend are not in trouble, there are better investments to be found. Three stocks that these Motley Fool contributors particularly like are Dominion Energy (NYSE: D), AbbVie (NYSE: ABBV), and MGM Growth Properties (NYSE: MGP).

  • Opportunities Seen in Bahrain, Oman, Arquaam Capital's Hussain Says
    Business
    Bloomberg

    Opportunities Seen in Bahrain, Oman, Arquaam Capital's Hussain Says

    Oct.22 -- Abdul Kadir Hussain, the head of fixed income at Arqaam Capital, a Dubai-based investment bank, talks about Saudi Arabia's evolving account of the death of Jamal Khashoggi, the market implications, and the opportunities he sees in other countries.. He speaks with Yousef Gamal El-Din on Manus Cranny on "Bloomberg Daybreak: Middle East."

  • Business
    Benzinga

    Barron's Picks And Pans: Alibaba, Citizens Financial, FAANG Stocks And More

    This weekend's Barron's cover story shows why emerging markets may be ready to rebound. Other featured articles examine why stocks will rally in 2019 and how to play preferred stock as yields rise. Also: the prospects for Chinese internet giants and

  • 3 Warren Buffett Stocks Worth Buying Now
    Business
    Motley Fool

    3 Warren Buffett Stocks Worth Buying Now

    Known as the Oracle of Omaha, Warren Buffett has collected both an incredible investment record and a deservedly vast following among investors of all types. Every move he makes is scrutinized in the hope of gleaning  wisdom from his investment choices.

  • How the Heck Did Netflix Stock Go Down Last Week?
    News
    Motley Fool

    How the Heck Did Netflix Stock Go Down Last Week?

    Everything seemed to go right for Netflix (NASDAQ: NFLX) last week. It has another hit on its hands with The Haunting of Hill House, an eight-part horror series based on Shirley Jackson's novel that has even won the praise of the immortal Stephen King. Netflix is killing it, but investors are unfortunately singing a different tune.

  • Hate Taxes? 37 States Make Social Security Tax Free
    Business
    Motley Fool

    Hate Taxes? 37 States Make Social Security Tax Free

    Over the course of your career, you'll probably have tens of thousands of dollars in Social Security payroll taxes withheld from your paychecks. Workers are confident that by paying those taxes up front, they'll be able to collect Social Security benefits

  • 3 Reasons Alibaba Stock Could Rise
    Business
    Motley Fool

    3 Reasons Alibaba Stock Could Rise

    After reaching an all-time high of $211.70 in June, Alibaba (NYSE: BABA) shares have shed nearly a third of their value as fears of an escalating trade war between China and the U.S. rattled investors. China's e-commerce market will grow to $1.8 trillion by 2022, according to Forrester, up from $1.1 trillion this year. With only 38% of China's 1.4 billion people currently making purchases online, this massive market is set to grow briskly for many years to come.

  • Tesla CEO Elon Musk Signals 'Dog Mode' Could Be on the Way
    Business
    Fortune

    Tesla CEO Elon Musk Signals 'Dog Mode' Could Be on the Way

    Tesla is considering fixing one of the most important issues for dog owners with a car—at least according to a tweet from Elon Musk. The company’s CEO replied to a tweet late this week signaling that the company could add a “dog mode” feature for when a pet owner has to step away from their car while leaving their furry friend inside. Tesla introduced a v8 software in 2016 that provided a feature called “Cabin Overheat Protect” that would keep the car at a “safe” temperature for a duration of time, and operates even when the car is off, according to electrek, which first reported on Musk’s response. The feature was designed for child and pet safety.

  • Get Ready for Intel Earnings
    Business
    Motley Fool

    Get Ready for Intel Earnings

    Ahead of Intel's earnings release, it's worth recapping what the company told investors to expect and what the analyst community is expecting. When Intel released its second-quarter financial results on July 26, it provided detailed financial guidance for the subsequent quarter, as well as for the full year. The company told investors to expect third-quarter revenue of between $17.6 billion and $18.6 billion and operating margin of "approximately" 32.5%.

  • Here's Which Marijuana Stocks Investors Are Betting Against the Most
    Business
    Motley Fool

    Here's Which Marijuana Stocks Investors Are Betting Against the Most

    Canada's recreational marijuana market is now open for business. Some are confident enough that certain marijuana stocks will fall that they're putting a lot of money on the line expecting that's exactly what will happen. The marijuana grower's low stock float and wild swings over the last month have received a lot of attention.

  • Business
    Benzinga

    Bulls & Bears Of The Week: Apple, Disney, Ford, Home Depot And More

    Benzinga has featured looks at many investor favorite stocks over the past week. Bullish calls included leaders in entertainment, tobacco and video games. Bearish calls included a Detroit automaker and big box retailer. Last week began with a mystery

  • A Reduced Payout Could Be Coming for These 3 High-Yield Dividend Stocks
    Business
    Motley Fool

    A Reduced Payout Could Be Coming for These 3 High-Yield Dividend Stocks

    The bull market has been churning higher for nearly 10 years now as the S&P 500 has more than quadrupled since the market bottom in 2009. Investors in some high-yield dividend stocks may be worried about a payout cut, especially with rising interest rates making bonds more appealing. Let's take a closer look at three high-yield dividend stocks that could see a reduced payout.