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 "dead cat bounce" (down big yesterday but up big today) 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 $31.3 million.
- ESL has traded 162,976 shares today.
- ESL is up 3% today.
- ESL was down 9.3% yesterday.
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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. It operates through three segments: Avionics & Controls, Sensors & Systems, and Advanced Materials. ESL has a PE ratio of 23.0. Currently there are 6 analysts that rate Esterline Technologies a buy, 1 analyst rates it a sell, and 1 rates it a hold.
The average volume for Esterline Technologies has been 259,500 shares per day over the past 30 days. Esterline has a market cap of $3.7 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.11 and a short float of 4.7% with 4.69 days to cover. Shares are down 2.6% year-to-date as of the close of trading on Friday.
rates Esterline Technologies as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ESL has a quick ratio of 1.73, which demonstrates the ability of the company to cover short-term liquidity needs.
- ESL, with its decline in revenue, slightly underperformed the industry average of 0.4%. Since the same quarter one year prior, revenues slightly dropped by 8.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Aerospace & Defense industry and the overall market, ESTERLINE TECHNOLOGIES CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- ESTERLINE TECHNOLOGIES CORP's earnings per share declined by 25.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, ESTERLINE TECHNOLOGIES CORP reported lower earnings of $5.15 versus $5.22 in the prior year.
- You can view the full Esterline Technologies Ratings Report.