The bear is growling again this week, but here are the surefire ingredients for a stock that can defy a falling market: a surging sector, recent earnings growth, a history of earnings surprises, and raised guidance.

We've found an aerospace leader that enjoys all four of these momentum criteria, making it a bear-killing technology innovator that should rise above today's downward market.

Harris (HRS) , a maker of aerospace and defense electronics, on Tuesday reported adjusted earnings-per-share (EPS) of $1.49 in the second quarter of fiscal 2016, handily exceeding the consensus estimate of $1.36. The company has delivered positive earnings surprises in each of the last four quarters, with an average beat of 7.89%.

HRS Chart HRS data by YCharts

Revenue in the quarter came in at $1.84 billion, for a whopping year-over-year gain of 52.1%. Free cash flow was $298 million compared with $104 million in the same quarter a year ago.

Management now expects adjusted EPS in fiscal 2016 in the range of $5.70 to $5.80, compared to previous guidance of $5.60 to $5.80.

Based in Melbourne, Florida, Harris is divided into five divisions: microwave systems, broadcast communications, network support, radio communications, and government systems.

The company plows a considerable amount of its resources into research and development, maintaining a staff of roughly 7,000 engineers and scientists, out of a total workforce of 22,300. Harris' investment in technology innovation will continue to pay off for the company and its investors, putting it among a group of technology innovators with solid prospects even in this risky market.

Another factor that gives Harris a decided edge is a 50/50 split between commercial and military clients, which allows it to weather a slump in any one sector. Half its revenue derives from the commercial sector, with the other half from government agencies including the U.S. Federal Aviation Administration (FAA) and the Pentagon. This dichotomy helped the company survive the brutal slowdown in commercial aviation, which is finally showing signs of easing.

Meanwhile, the military electronics market will be fueled over the next decade by expanding airlift operations worldwide and the corresponding need for new communication, navigation and surveillance equipment that allow military aircraft to share airspace with commercial aircraft. These are the very technologies in which Harris excels.

Harris' products include combat radios, fighter-jet cockpit communications and command-control systems for military planners. Harris helps end-users contribute to product development by maintaining a transparent supply chain that fosters collaboration and integration.

This "groupware" approach to its supply chain ensures that each of the vendors contributing to an avionics system produces standardized modules that can be easily integrated. Hence the company's oft-repeated motto: "Right item, right supplier, the first time."

The U.S. military covets the company's products and Uncle Sam is one of the most profitable and reliable clients a business can serve. Military spending is likely to grow, regardless of which party occupies the White House or controls Congress. Healthy Pentagon outlays in turn boost high-margin military electronics, which is Harris' forte.

With a trailing price-to-earnings (P/E) ratio of about 25, the stock seems a bit pricey compared to the P/E of 19 for its industry, but it sports a robust, five-year expected price-to-earnings growth (PEG) ratio of 7.75, compared to PEG ratios of 1.19 for Boeing and 2.69 for Raytheon, two major rivals.

With Harris' shares now trading at about $79, the median analyst expectation for a one-year price target is $100, for a gain of nearly 27%.

Harris Corp. looks enticing now, but we've found another high-tech defense stock that's set to soar. A recently declassified government program is flying completely under Wall Street's radar, and that's good news for investors like you. DARPA, the Pentagon's famous research arm that helped developed the Internet and GPS, is at it again. They've developed an innovation so ground-breaking it's been called "the greatest game changer in Army history since the machine gun." Click here now to learn more about this program, and how you can invest in its future today.

 

John Persinos is editorial manager and investment analyst at Investing Daily. At the time of publication, the author held no positions in the stocks mentioned.