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 pre-market mover with heavy volume 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 $49.7 million.
  • HRS traded 69,377 shares today in the pre-market hours as of 8:53 AM, representing 10.2% of its average daily volume.

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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 through RF Communications, Integrated Network Solutions, and Government Communications Systems segments. The stock currently has a dividend yield of 2.7%. HRS has a PE ratio of 13.8. Currently there is 1 analyst that rates Harris Corporation a buy, 2 analysts rate it a sell, and 2 rate it a hold.

The average volume for Harris Corporation has been 630,800 shares per day over the past 30 days. Harris has a market cap of $7.2 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 1.60 and a short float of 1.2% with 1.81 days to cover. Shares are down 4.4% year-to-date as of the close of trading on Wednesday.

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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 notable return on equity, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, HARRIS CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.3%. Since the same quarter one year prior, revenues slightly dropped by 3.1%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • HRS's debt-to-equity ratio of 0.91 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.99 is weak.
  • HARRIS CORP reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, HARRIS CORP increased its bottom line by earning $5.00 versus $4.16 in the prior year. For the next year, the market is expecting a contraction of 1.5% in earnings ($4.93 versus $5.00).
  • 37.06% is the gross profit margin for HARRIS CORP which we consider to be strong. Regardless of HRS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HRS's net profit margin of 10.82% is significantly lower than the industry average.

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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