Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, infrared technologist FLIR Systems (NAS: FLIR) has earned a respected four-star ranking.
With that in mind, let's take a closer look at FLIR's business and see what CAPS investors are saying about the stock right now.
Wilsonville, Ore. (1978)
Electronic equipment and instruments
Chairman/CEO Earl Lewis (since 2000)
Return on Equity (average, past 3 years)
$448.2 million / $248.0 million
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 820 members who have rated FLIR believe the stock will outperform the S&P 500 going forward.
[I]n the case of FLIR, you're not paying a huge multiple for the growth opportunities that will continue to surface as the technology becomes increasing attractive in commercial markets and in government systems around the globe (FLIR has only scratched the surface in the BRICs); on management's 2012 earnings estimate of $1.60 to $1.70 per diluted share, the company currently sells at a forward multiple of just 12-13x. ...
I think that the appropriate conclusion is that when taking a longer term view, this [valuation] fails to consider the company's growth prospects in the international government business, in addition to opportunities that will emerge on the industrial and commercial side as a result of increasingly affordable technology with real world applications. ...
I think that there is a strong case to be made for initiating a position in FLIR at the current valuation.
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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of L-3 and Lockheed. Motley Fool newsletter services have recommended buying shares of L-3. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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