Recs

14

4-Star Stocks Poised to Pop: Harris

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, radio and communication device maker Harris (NYSE: HRS  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Harris' business and see what CAPS investors are saying about the stock right now.

Harris facts

Headquarters (founded)

Melbourne, Fla. (1916)

Market Cap

$4.15 billion

Industry

Communications equipment

TTM Revenue

$5.69 billion

Management

CEO Howard Lance (since 2003)
CFO Gary McArthur (since 2006)

Compound Annual Revenue and Net Income Growth (over last five years)

19.4% and 27.1%

Dividend Yield

2.6%

Competitors

Boeing (NYSE: BA  )
General Dynamics (NYSE: GD  )

CAPS members bullish on HRS also bullish on

General Electric (NYSE: GE  )
Johnson & Johnson (NYSE: JNJ  )

CAPS members bearish on HRS also bearish on

Citigroup (NYSE: C  )
JPMorgan (NYSE: JPM  )

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 492 of the 507 members who have rated Harris -- 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars mrindependent and Babachrono, both of whom are ranked in the top 5% of our community.

Just last month, mrindependent helped communicate the stock's bull case:

Harris sells communications systems for governments. This should be more recession proof than most businesses. The company is somewhat undervalued at 9 times 2010 estimated earnings. Sound balance sheet.

In an earlier pitch, Babachrono agrees with that reasoning:

Dividend is sustainable and looks good. And let's face it, I see truck loads and truck loads of these radios show up each day over here in Afghanistan. They are the best thing we've got over here in this poor terrain that all but requires us to rely on satellite based communications versus the line-of-sight equipment that can be easily used in Iraq. Given the impending troop surge means a greater need for radios and their spare parts. Harris will be a major key player.

What do you think about Harris, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. General Dynamics is a Motley Fool Inside Value pick, and Johnson & Johnson is a choice of  Income Investor. The Fool's disclosure policy always gets a perfect score.


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2/14/2012 12:14 PM
HRS $42.06 Down -0.27 -0.64%
Harris Corp CAPS Rating: *****
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