Analysts everywhere are predicting 2019 to be Arotech’s (NASDAQ:ARTX) year. The reason this penny stock is getting attention is its reasonable valuation and price for a sector that’s heating up.

Will Arotech be one for your portfolio?

Penny Stocks to Watch

The first string to Arotech’s bow is the fact that it combines two very trending sectors: drones and virtual reality. If you want to be excited by your investment for reasons other than the monetary potentials, then Arotech is one to watch.

The company creates technology for military and law enforcement. Specifically, it makes virtual simulations for training purposes. It also sells to the security and emergency services sectors, providing weapons simulations for aircraft and missile systems.

Things also got hotter for the company earlier in 2018. Its subsidiary, FAAC, won a contract worth $29 million to update convoy simulators for the US Marine Corps.

Penny Stocks: Timing is Right

Arotech is an important provider of surveillance and defense training tech at an important time. Drones are becoming increasingly popular and their use in the armed forces paramount. Also, attention around AI used in military and police operations is increasing.

The sector is heating up so much so, that the company is reporting $70.7 million USD in backlogged orders. Its 2018 achievements are expected to amount to $100 million in revenue. 

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Earnings per share (EPS) between 16 cents to 18 cents is also expected, though these results will be confirmed in March.

The Bottom Line

It is time for investors to sit up and notice this penny stock. At its current value of $3.20 USD, there is big potential ahead. The market for ‘drone services’ has been given an estimate of $127.3 billion by public accounting and consulting firm PriceWaterhouseCoopers LLC.