As earnings season begins to wind down, some apparel retailers are scheduled to report quarterly results this week. Analysts polled by Thomson Reuters anticipate that Walmart Stores Inc. (NYSE: WMT), the 800-pound gorilla in the space, will report that it earned $0.77 per share in the first quarter, about the same as in the first quarter of last year. But JCPenney Co. (NYSE: JCP), Kohl's Corp. (NYSE: KSS), Nordstrom Inc. (NYSE: JWN), and Urban Outfitters Inc. (NASDAQ: URBN) are expected to report lower profits for the first quarter as consumers continued to hold off on spending. Macy's Inc. (NYSE: M) and Abercrombie & Fitch Co. (NYSE: ANF) are expected to have swung to a loss year over year.

Whole Foods Market Inc. (NASDAQ: WFMI) and Winn Dixie Stores Inc. (NASDAQ: WINN) are likewise expected to report declining earnings, while the Great Atlantic & Pacific Tea Co. (NYSE: GAP), parent of the A&P supermarket chain, is expected to have narrowed its net loss 68.9% to $0.28 per share.

Like any stock market loser, when I read the news I'm always looking for any potential ideas that can come from the story's theme. When I read a BusinessWeek article about Homeland Security Secretary Michael Chertoff "promising more cargo screening" my mind immediately thought about the ramifications this move would have on the defense sector. I'm happy that the Homeland Security Secretary is starting to do something after his bold predictions of terrorist activist just a few weeks ago.

In my research I've found a company that should directly benefit from this spending on increased screening -- American Science & Engineering (NASDAQ: ASEI). Surprisingly, the stock didn't move on this news, which makes the situation even better as it seems the connection between American Science & Engineering (AS&E) and the Chertoff announcement flew over most people's heads. I think the reason for this is that AS&E wasn't in any way tied to the article, meaning the article doesn't mention the stock, or any other stock for that matter.

American Science & Engineering isn't a one-trick pony or a poorly developed company. In fact, the company boasts a strong product line, and an undervaluation when compared to its sector.

The company's product line is quite diversified between a wide variety of innovative and useful security technologies. AS&E's SmartCheck screening system basically creates an electronic chalk outline of the person being screened -- any potential weapons, for example, stick out from the body. The TSA has begun pilot testing this technology. The company's Gemini X-ray system is also very interesting. When compared to standard x-ray scanners, the product has been shown to more easily detect metal objects and fine details. Like the SmartCheck, it is easy to see the applicability of the Gemini in today's world. Lastly, and my reason for writing this story, AS&E has a product that provides excellent cargo and vehicle inspection -- the OmniView.