Trade-Ideas LLC identified

Harman International Industries

(

HAR

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Harman International Industries as such a stock due to the following factors:

  • HAR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $124.5 million.
  • HAR has traded 167,507 shares today.
  • HAR is up 3.6% today.
  • HAR was down 13.4% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in HAR with the Ticky from Trade-Ideas. See the FREE profile for HAR NOW at Trade-Ideas

More details on HAR:

Harman International Industries, Incorporated designs, engineers, manufactures, and markets audio systems, visual products, enterprise automation solutions, and connected services for automakers, consumers, and enterprises worldwide. The stock currently has a dividend yield of 1.8%. HAR has a PE ratio of 16. Currently there are 8 analysts that rate Harman International Industries a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Harman International Industries has been 832,500 shares per day over the past 30 days. Harman International has a market cap of $5.7 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 0.71 and a short float of 4.4% with 1.88 days to cover. Shares are down 26.8% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Harman International Industries as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • HAR's revenue growth has slightly outpaced the industry average of 8.7%. Since the same quarter one year prior, revenues rose by 14.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • HARMAN INTERNATIONAL INDS's earnings per share improvement from the most recent quarter was slightly positive. 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, HARMAN INTERNATIONAL INDS increased its bottom line by earning $4.83 versus $3.36 in the prior year. This year, the market expects an improvement in earnings ($6.51 versus $4.83).
  • The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.70 is somewhat weak and could be cause for future problems.
  • 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. Compared to other companies in the Household Durables industry and the overall market on the basis of return on equity, HARMAN INTERNATIONAL INDS has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.