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 Esterline Technologies ( ESL) as a new lifetime high 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 $26.3 million.
  • ESL has traded 250,837 shares today.
  • ESL is trading at a new lifetime high.

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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. ESL has a PE ratio of 17.7. Currently there are 2 analysts that rate Esterline Technologies a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Esterline Technologies has been 165,400 shares per day over the past 30 days. Esterline has a market cap of $2.9 billion and is part of the industrial goods sector and aerospace/defense industry. The stock has a beta of 1.43 and a short float of 1.2% with 1.30 days to cover. Shares are up 45.3% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Esterline Technologies as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 43.50% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • ESTERLINE TECHNOLOGIES CORP has improved earnings per share by 5.1% 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, ESTERLINE TECHNOLOGIES CORP increased its bottom line by earning $5.22 versus $3.59 in the prior year. This year, the market expects an improvement in earnings ($5.55 versus $5.22).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.7%. Since the same quarter one year prior, revenues slightly increased by 0.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.37, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.41, which illustrates the ability to avoid short-term cash problems.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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