Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Esterline Technologies as such a stock due to the following factors:
- ESL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.9 million.
- ESL has traded 2,802 shares today.
- ESL is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ESL with the Ticky from Trade-Ideas. See the FREE profile for ESL NOW at Trade-Ideas
More details on ESL:
Esterline Technologies Corporation designs, manufactures, and markets engineered products and systems primarily for aerospace and defense customers in the United States and internationally. ESL has a PE ratio of 20.1. Currently there are 3 analysts that rate Esterline Technologies a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Esterline Technologies has been 239,400 shares per day over the past 30 days. Esterline has a market cap of $3.4 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.32 and a short float of 2.4% with 3.04 days to cover. Shares are up 5.8% year-to-date as of the close of trading on Tuesday.
rates Esterline Technologies as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- ESL's revenue growth has slightly outpaced the industry average of 7.5%. Since the same quarter one year prior, revenues rose by 10.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.40, which illustrates the ability to avoid short-term cash problems.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 58.28% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- ESTERLINE TECHNOLOGIES CORP has improved earnings per share by 16.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, ESTERLINE TECHNOLOGIES CORP increased its bottom line by earning $5.22 versus $3.59 in the prior year. This year, the market expects an improvement in earnings ($5.65 versus $5.22).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Aerospace & Defense industry average. The net income increased by 19.8% when compared to the same quarter one year prior, going from $25.11 million to $30.08 million.
- You can view the full Esterline Technologies Ratings Report.