Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) 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 $71.5 million.
- HAR has traded 354,216 shares today.
- HAR traded in a range 312.6% of the normal price range with a price range of $7.70.
- HAR traded below its daily resistance level (quality: 6 days, meaning that the stock is crossing a resistance level set by the last 6 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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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 1.3%. HAR has a PE ratio of 22. Currently there are 7 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 906,800 shares per day over the past 30 days. Harman International has a market cap of $7.5 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 0.53 and a short float of 4.2% with 4.32 days to cover. Shares are down 0% year-to-date as of the close of trading on Wednesday.
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rates Harman International Industries as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. 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 10.0%. Since the same quarter one year prior, revenues rose by 16.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- HARMAN INTERNATIONAL INDS reported significant earnings per share improvement 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, 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 ($6.49 versus $4.83).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 69.3% when compared to the same quarter one year prior, rising from $43.23 million to $73.18 million.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- The current debt-to-equity ratio, 0.46, 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 0.80 is somewhat weak and could be cause for future problems.
- You can view the full Harman International Industries Ratings Report.