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 Harman International Industries ( HAR) as a post-market leader 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 $98.2 million.
- HAR is up 3% today from today's close.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in HAR with the Ticky from Trade-Ideas. See the FREE profile for HAR NOW at Trade-Ideas More details on HAR: Harman International Industries, Incorporated designs, develops, manufactures, and markets audio products, lighting solutions, and electronic systems, as well as digitally integrated audio and infotainment systems for the automotive industry worldwide. The stock currently has a dividend yield of 1.1%. HAR has a PE ratio of 47.3. Currently there are 4 analysts that rate Harman International Industries a buy, 1 analyst rates it a sell, and none rate it a hold. The average volume for Harman International Industries has been 881,900 shares per day over the past 30 days. Harman International has a market cap of $7.3 billion and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 2.42 and a short float of 3.8% with 2.37 days to cover. Shares are up 30.7% 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 Harman International Industries as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel these 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 greatly exceeded that of the S&P 500, but is less than that of the Household Durables industry average. The net income increased by 50.8% when compared to the same quarter one year prior, rising from $47.49 million to $71.63 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 28.9%. Since the same quarter one year prior, revenues rose by 25.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- HAR's debt-to-equity ratio is very low at 0.17 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.00, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 143.76% to $120.88 million when compared to the same quarter last year. In addition, HARMAN INTERNATIONAL INDS has also vastly surpassed the industry average cash flow growth rate of 15.58%.
- Powered by its strong earnings growth of 51.47% and other important driving factors, this stock has surged by 150.83% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp 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 other strengths this company displays justify these higher price levels.
- You can view the full Harman International Industries Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.