J.P. Morgan’s Joseph Nadol, 41, dominates the sector for a fifth year in a row, thanks in part to what one admirer calls his “top-notch industry knowledge.” The analyst tracks 23 companies, an increase of three from a year ago. “Joe is extremely helpful in keeping us up to date with ordering activity and contracts,” another fund manager says. For example, Nadol wisely upgraded Alliant Techsystems from neutral to overweight in April 2012, on a price dip to $49. He advised investors that market concern over whether Alliant would win a lucrative project from the U.S. Army for its Lake City ammunitions facility in Independence, Missouri, was overblown because earnings would grow either way. He was right. Alliant’s earnings before interest, taxes, depreciation and amortization rose 15.6 percent, to $154.16 million, from April through September — and late that month the Arlington, Virginia–based advanced-weapons builder won the Army contract. By the end of August 2013, Alliant’s stock price had nearly doubled, climbing to $96.76 and outpacing the sector by 68 percentage points. “Joe is never afraid to take a stand,” contends another grateful investor. — Ben Mattlin |
The 2013 All-America Research Team: Aerospace & Defense Electronics, No. 1: Joseph Nadol
