New Lifetime High Reached: Lear (LEA)

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.

Trade-Ideas LLC identified Lear ( LEA) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Lear as such a stock due to the following factors:

  • LEA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $87.4 million.
  • LEA has traded 20,148 shares today.
  • LEA is trading at a new lifetime high.

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More details on LEA:

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, electrical distribution systems, and related components primarily to automotive original equipment manufacturers worldwide. It operates through two segments, Seating and Electrical. The stock currently has a dividend yield of 0.9%. LEA has a PE ratio of 14. Currently there are 8 analysts that rate Lear a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Lear has been 662,600 shares per day over the past 30 days. Lear has a market cap of $9.1 billion and is part of the consumer goods sector and automotive industry. The stock has a beta of 1.05 and a short float of 0.8% with 0.85 days to cover. Shares are up 19.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Lear as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • LEA's revenue growth has slightly outpaced the industry average of 4.2%. Since the same quarter one year prior, revenues slightly increased by 3.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 26.53% and other important driving factors, this stock has surged by 32.90% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, LEA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • LEAR CORP has improved earnings per share by 26.5% 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 year. We feel that this trend should continue. During the past fiscal year, LEAR CORP increased its bottom line by earning $8.24 versus $4.99 in the prior year. This year, the market expects an improvement in earnings ($9.65 versus $8.24).
  • 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 Auto Components industry average. The net income increased by 20.7% when compared to the same quarter one year prior, going from $122.00 million to $147.30 million.

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