Surveillance Technology: The “Next Big Thing” for Investors
“Big Brother” is all around us, in the civilian as well as defense sectors. Successful investors are not only aware of this fact of modern life, they’re using it to profit from the resulting innovations in surveillance technology.
You don’t have to take our word for it; just look at the latest moves of retailing giant Wal-Mart Stores (NYSE: WMT).
To fight the existential threat posed by e-commerce leader Amazon (NASDAQ: AMZN), Wal-Mart is heavily investing in one of the most advanced forms of surveillance on the planet: unmanned aerial vehicles (UAVs), or “drones.”
Wal-Mart recently announced that it was just six to nine months from beginning to use drones to monitor warehouse inventories in the U.S. The company’s drone surveillance is part of a $2.7 billion effort to enhance its technological capabilities, to help stem sales erosion to e-commerce competitors.
Wal-Mart’s embrace of aerial surveillance is a significant step forward for the everyday, mainstream deployment of these futuristic machines. One of the best investment plays on drones is California-based AeroVironment (NASDAQ: AVAV).
Aerospace consultancy The Teal Group’s most recent market study estimates that UAV production will soar from current worldwide UAV production of $4 billion annually to $14 billion, totaling $93 billion in the next ten years.
A drone could be spying on you right now, without you knowing it. Drones increasingly serve as the “eyes in the skies” for governments, police agencies, and corporations around the world.
As the commercial UAV industry leader, AeroVironment provides a wide variety of drones that are prized by the military, but they also make a host of smaller UAVs that can be used for everything from package delivery to police surveillance.
With a market cap of $648 million, the company is large enough to provide stability for investors but small enough to offer outsized capital appreciation when compared to mega-cap military drone competitors such as Raytheon (NYSE: RTN), Northrop Grumman (NYSE: NOC), and Boeing (NYSE: BA).
AeroVironment’s forte is making small and nimble UAVs that have the ability to carry payloads and are fitted with GPS systems and contact avoidance systems. These are the types of units that would help Amazon’s CEO Jeff Bezos realize his bold vision of delivering packages door-to-door via drones.
By fiscal 2017, AeroVironment is expected to post annual earnings per share (EPS) of 28 cents, compared to 10 cents in 2016 (and 13 cents in 2015). The time to invest in AVAV is now, while it’s still a small-cap with enormous room for growth.
But as we explain below, surveillance-related technology is so much more than just war-fighting, policing, or package delivery. We’ve pinpointed another “surveillance play” that’s on the cusp of delivering market-thumping gains.
When “Disruptive” Technology Goes Mainstream
Whether in the form of pilotless drones or ad-targeting software, surveillance tech is the “next big thing.” The smartest way to profit from this unstoppable trend is to pinpoint the unknown, small-cap innovators that are on the ground floor.
Through the use of highly perceptive sensors and nanotechnology, ultra-sophisticated “spyware” is poised to revolutionize your daily life, from the way you view online advertising to the way you shop.
If it all sounds like science fiction, we assure you that it’s not. These surveillance techniques are already occurring every day.
Some of the world’s largest and most powerful companies have deployed an invisible surveillance technology on your computer that increases online ad clicks by 700%. It’s probably watching your behavior now, keystroke by keystroke. This capability can re-target online ads with uncanny precision, based on your buying habits, online surfing history, demographic profile, and expressed interests. It can practically read your mind.
One small company has a lock on this proprietary ad-targeting technology, which works on any platform, whether it’s a desktop computer, laptop, tablet, or smartphone.
However, this technology doesn’t just represent a new way for titans like Facebook (NASDAQ: FB), Verizon (NYSE: VZ), and Alphabet’s (NASDAQ: GOOGL) Google to increase revenue. It’s a paradigm shift that will forever transform how companies conduct business online. The company that controls this capability is poised to soar. To learn more about this little-known investment opportunity, click here.
When a disruptive technology like miniaturized surveillance is increasingly adopted by corporate behemoths and industry bellwethers, it’s time to start investing in the entrepreneurial companies that dominate this emerging know-how.