Top Picks 2016: OSI Systems

01/26/2016 7:00 am EST

Focus: GLOBAL

Jim Powell

Principal Analyst, Global Changes & Opportunities

In response to the new threats posed by ISIS, several new anti-terrorism programs are in the works, explains Jim Powell, geopolitical expert and editor of Global Changes & Opportunities Report.

One of the most important is to tighten America's borders and keep a closer watch on everything—and everyone—that crosses them.

One company that stands to profit from these new anti-terrorism programs is OSI Systems (OSIS).

The company's security division is a leading supplier of X-ray and gamma-ray scanners used in airports, seaports, and railroads around the world. The company also makes handheld sniffers to detect explosives and other dangerous substances.

In addition to the company's government orders, its systems are also being purchased by parcel delivery companies whose goal—along with Washington's blessing—is to scan everything they handle.

I am particularly pleased to see OSI address one of the biggest challenges in US border security, inspecting incoming cargo containers.

Large-scale scanners are now being installed in major ports, a process that should take several years.

OSI also makes the full body scanners being used in airports. In response to many protests about safety and privacy, the first machines are being replaced with equipment that uses a new technology that both the company and the TSA insist is safe, effective, and less intrusive.

The upgrades should take several years to complete and be very profitable for the company. OSI Systems also has a Healthcare Division and an Optoelectronics Division that are providing products that are in demand.

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