Trade-Ideas LLC identified

L-3 Communications Holdings

(

LLL

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified L-3 Communications Holdings as such a stock due to the following factors:

  • LLL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $51.9 million.
  • LLL is up 4.1% today from today's close.

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

More details on LLL:

L-3 Communications Holdings, Inc., through its subsidiary, L-3 Communications Corporation, provides aerospace systems, and a range of communication and electronic systems and products used on military and commercial platforms in the United States and internationally. The stock currently has a dividend yield of 1.9%. LLL has a PE ratio of 34. Currently there are 5 analysts that rate L-3 Communications Holdings a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for L-3 Communications Holdings has been 629,400 shares per day over the past 30 days. L-3 has a market cap of $11.4 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.15 and a short float of 2.1% with 4.44 days to cover. Shares are up 23.4% 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 L-3 Communications Holdings as a

buy

. The company's strengths can be seen in multiple areas, such as its increase in net income, solid stock price performance, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Aerospace & Defense industry. The net income increased by 116.2% when compared to the same quarter one year prior, rising from $105.00 million to $227.00 million.
  • 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. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
  • L-3 COMMUNICATIONS HLDGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, L-3 COMMUNICATIONS HLDGS INC reported lower earnings of $3.34 versus $7.20 in the prior year. This year, the market expects an improvement in earnings ($7.80 versus $3.34).
  • The debt-to-equity ratio is somewhat low, currently at 0.83, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.96 is somewhat weak and could be cause for future problems.
  • LLL, with its decline in revenue, slightly underperformed the industry average of 0.8%. Since the same quarter one year prior, revenues slightly dropped by 5.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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.