Trade-Ideas LLC identified

Harris Corporation

(

HRS

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Harris Corporation as such a stock due to the following factors:

  • HRS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $66.9 million.
  • HRS has traded 130,669 shares today.
  • HRS traded in a range 299.5% of the normal price range with a price range of $4.70.
  • HRS traded above its daily resistance level (quality: 75 days, meaning that the stock is crossing a resistance level set by the last 75 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' 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 positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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

More details on HRS:

Harris Corporation provides technology-based solutions that solve government and commercial customers' mission-critical challenges. The company operates in four segments: Communication Systems, Critical Networks, Electronic Systems, and Space and Intelligence Systems. The stock currently has a dividend yield of 2.5%. HRS has a PE ratio of 25. Currently there are 6 analysts that rate Harris Corporation a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Harris Corporation has been 933,400 shares per day over the past 30 days. Harris has a market cap of $9.8 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 1.47 and a short float of 1.3% with 1.99 days to cover. Shares are up 11% year-to-date as of the close of trading on Monday.

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 Harris Corporation as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 15.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $458.80 million or 16.09% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -10.40%.
  • 35.34% is the gross profit margin for HARRIS CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -3.66% is in-line with the industry average.
  • HARRIS CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, HARRIS CORP reported lower earnings of $3.19 versus $5.00 in the prior year. This year, the market expects an improvement in earnings ($5.72 versus $3.19).
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. 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.

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.