A Value Opportunity In Harris Corporation (HRS), WestRock Company (WRK)

11 analysts out of 14 Wall Street brokerage firms rate Harris Corporation (NYSE:HRS) as a Buy, while 0 see it as a Sell. The rest 3 describe it as a Hold. HRS stock traded higher to an intra-day high of $162.88. At one point in session, its potential discontinued and the price was down to lows at $160.14. Analysts have set HRS’s consensus price at $180.27, effectively giving it a 12.36% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $216 (up 34.63% from current price levels). HRS has a 26.3% ROE, higher than the 5.99% average for the industry. The average ROE for the sector is 15.4%.

It is expected that in Mar 2019 quarter HRS will have an EPS of $2.05, suggesting a 22.75% growth. For Jun 2019 is projected at $2.19. It means that there could be a 23.03% growth in the quarter. Yearly earnings are expected to rise by 23.23% to about $8.01. As for the coming year, growth will be about 11.36%, lifting earnings to $8.92. RSI after the last trading period was 53.55. HRS recorded a change of -0.49% over the past week and returned 10.66% over the last three months while the HRS stock’s monthly performance revealed a shift in price of -1.01%. The year to date (YTD) performance stands at 19.15%, and the bi-yearly performance specified an activity trend of -0.55% while the shares have moved 1.48% for the past 12 months.

Harris Corporation (HRS) currently trades at $160.44, which is lower by -0.82% its previous price. It has a total of 117.56 million outstanding shares, with an ATR of around 2.73. The company’s stock volume dropped to 0.96 million, worse than 1.08 million that represents its 50-day average. A 5-day decrease of about -0.49% in its price means HRS is now 19.15% higher on year-to-date. The shares have surrendered $43299.56 since its $175.50 52-week high price recorded on 16th of October 2018. Overall, it has seen a growth rate of 1.48 over the last 12 months. The current price per share is $37.2 above the 52 week low of $123.24 set on 26th of December 2018.

Harris Corporation (NYSE:HRS)’s EPS was $1.96 as reported for the December quarter. In comparison, the same quarter a year ago had an EPS of $1.67. That means that its growth in general now stands at 17%. Therefore, a prediction of $1.91 given by the analysts brought a positive surprise of 3%. HRS Dec 19 quarter revenue was $1.67 billion, compared to $1.54 billion recorded in same quarter last year, giving it a 9% growth rate. The company’s $0.13 billion revenue growth that quarter surprised Wall Street and investors will need to consider this as they assess the stock.

WestRock Company (NYSE:WRK) shares depreciated -1.06% over the last trading period, taking overall 5-day performance up to 4.68%. WRK’s price now at $39.16 is weaker than the 50-day average of $39.43. Getting the trading period increased to 200 days, the stock price was seen at $48.53 on average. The general public currently hold control of a total of 251.93 million shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 253.41 million. The company’s management holds a total of 1.1%, while institutional investors hold about 90.2% of the remaining shares. WRK share price finished last trade 1.08% above its 20 day simple moving average and its downbeat gap from 200 day simple moving average is -19.48%, while closing the session with -0.61% distance from 50 day simple moving average.

WestRock Company (WRK) shares were last observed trading -41.8% down since March 15, 2018 when the peak of $67.29 was hit. Last month’s price growth of 1.16% puts WRK performance for the year now at 3.71%. Consequently, the shares price is trending higher by 11.25%, a 52-week worst price since Dec. 24, 2018. However, it is losing value with -29.16% in the last 6 months. From a technical perspective, it appears more likely that the stock will experience a Bull Run market as a result of the strong support seen recently between $38.61 and $38.89. The immediate resistance area is now $39.53 Williams’s %R (14) for WRK moved to 26.94 while the stochastic %K points at 80.48.

WRK’s beta is 1.69; meaning investors could reap higher returns, although it also poses higher risks. The company allocated $3.02 per share from its yearly profit to its outstanding shares. Its last reported revenue is $4.33 billion, which was 11% versus $3.89 billion in the corresponding quarter last year. The EPS for Dec 19 quarter came in at $0.83 compared to $0.87 in the year-ago quarter and had represented -5% year-over-year earnings per share growth. WRK’s ROA is 3.4%, lower than the 5% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 8.27%.

Estimated quarterly earnings for WestRock Company (NYSE:WRK) are around $0.64 per share in three months through March with $1.2 also the estimate for June quarter of the fiscal year. It means the growth is estimated at -22.89% and 10.09%, respectively. Analysts estimate full-year growth to be -0.49%, the target being $4.07 a share. The upcoming year will see an increase in growth by percentage to 1.97%, more likely to see it hit the $4.15 per share. The firm’s current profit margin over the past 12 months is 5.4%. WRK ranks lower in comparison to an average of 7.45% for industry peers; while the average for the sector is 6.47%.