This defense company’s shares are just about at the buying level again. Watch for a close at $110 or below before climbing on board.
Elbit Systems (ESLT)
From Positive Patterns
Elbit Systems (ESLT) is a really promising growth stock for the future. ESLT had a very big run-up to the $150 area and now has backed off a good bit, recently making new lows for the year in the $112 area. This tells us the company might be in a correction phase for a while. At $150 we suggested some selling and now, in the $110 area and below, I would rate this as a “buy” again.
Looking at the chart, I would say it will probably trade a bit lower. Below $110, I would start buying this very promising growth stock again. Not for this year, but for 2020 and 2025, I think ESLT will make for winning stock.
The company is making a “move” into the cyber-security business (check out this informative/excellent website: https://www.cyberbit.com/). Cyberbit is 100% owned by ESLT and in the next 3-5 years, this just might become a significant revenue source.
ESLT is in a ‘confidential business’. It announces a $300 million deal with a company in the “Asia-Pacific”; then signs another big $200 million deal with a “client in Africa” (and we quote). It’s that type of business, and nobody is higher tech in the defense industry than ESLT. The company is quickly becoming a name of respect and reliability when it comes to defending “said” country.
Watch for this one at $110 and especially below, where would start buying it again. ESLT just made a new low for the last 12 months—a sign the correction is not over yet. We are getting close, but no hurry about buying it right here. WAIT.
Bob Howard, Positive Patterns, P.O. Box 310, Turners, MO 65765, 417-887-4486, May 16, 2018