New Lifetime High Reached: Harris Corporation (HRS)

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 Harris Corporation ( HRS) as a new lifetime high 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 $61.0 million.
  • HRS has traded 2,347 shares today.
  • HRS is trading at a new lifetime high.

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More details on HRS:

Harris Corporation, together with its subsidiaries, operates as an international communications and information technology company worldwide. The company operates in three segments: RF Communications, Integrated Network Solutions, and Government Communications Systems. The stock currently has a dividend yield of 2.4%. HRS has a PE ratio of 16.7. Currently there are 2 analysts that rate Harris Corporation a buy, 2 analysts rate it a sell, and 6 rate it a hold.

The average volume for Harris Corporation has been 645,800 shares per day over the past 30 days. Harris has a market cap of $7.5 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 1.36 and a short float of 2.6% with 3.18 days to cover. Shares are up 1.1% year-to-date as of the close of trading on Thursday.

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 Harris Corporation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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 42.63% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HRS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 246.6% when compared to the same quarter one year prior, rising from -$85.80 million to $125.80 million.
  • 37.93% 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 10.55% trails the industry average.
  • Net operating cash flow has increased to $172.60 million or 43.23% when compared to the same quarter last year. Despite an increase in cash flow, HARRIS CORP's average is still marginally south of the industry average growth rate of 49.90%.
  • HARRIS CORP's earnings per share improvement from the most recent quarter was slightly positive. 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, HARRIS CORP reported lower earnings of $4.16 versus $4.85 in the prior year. This year, the market expects an improvement in earnings ($4.81 versus $4.16).

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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