Harris Corporation's (NYSE: HRS) software was responsible for the software glitch that caused many flights to be delayed across the country.

Harris Corporation has been trading down all day.

"Technology stocks are helping drive the stock market higher; in our view, one under-the-radar quality technology issue is defense industry player Harris Corp. (NYSE: HRS)," says Brandon Clay.

In his Invest with an Edge, he observes, "Harris is proving a tech company doesn't need to do anything flashy to generate flashy returns."

"At its core, Florida-based Harris is an information technology company. Admittedly, this is a stodgy area in the tech world, but don't let that deter you.

"There’s a lot to like with Harris. For instance, the U.S. government is one of the company's biggest customers. 

"Companies that rely on Uncle Sam for the bulk of their sales and profits, as does Harris, have predictable revenue streams. They’re often able to weather economic downturns more easily than other companies.

"Harris designs and builds communications technology used by the U.S. military. Given that the U.S. is involved in two armed conflicts with no end in sight, demand should remain steady for the company's products.

"Harris recently reported a 12% drop in fiscal first-quarter earnings, but sales climbed by almost 3%. That is significant.  Unlike many companies that spent the better part of 2009 cutting costs, Harris is showing top-line growth.

"More importantly, Harris offered robust full-year guidance. They expect to earn $3.85-$3.95 a share on sales of $5.1-$5.2 billion, topping previous estimates.

"The company landed a combined $286.5 million in new contracts from the State Department and U.S. Navy on the same day in late October. Two weeks before that, Harris acquired a $419 million contract from the U.S. Army.  In August, Harris won a $10 million contract from the U.S. Air Force.

"The bottom line is that it is clear Uncle Sam is a big Harris customer, and that's good news for Harris shareholders. I think they will deliver on the higher guidance.

"Harris has more than $231 million in cash at the end of the most recent quarter and raised its quarterly dividend by 10% to 22 cents a share.

"This company is proving a tech company doesn't need to do anything flashy to generate flashy returns. To go with a solid defense contractor in the hot tech sector, buy HRS."

Rewarding Shareholders with Outstanding Income

The company recently declared a quarterly dividend of 21 cents per share, which translates into an industry-leading yield of 2.4%.

The dividend is payable December 1 to shareholders of record November 20.

Solid Earnings

In late October, the company reported third-quarter earnings of 42 cents per share, exceeding the Zacks Consensus Estimate by 8%. Revenue slipped 4% year-over-year but was up 7% on a local-currency basis.

Higher Forecasts and Strong Momentum

The company is seeing bullish earnings estimates on the strong quarter. The full-year Zacks Consensus Estimate of $1.70 per share is up 4 cents over the past 30 days.

For 2010, analysts polled by Zacks are projecting earnings of $2.17 per share, versus last month's $2.11.

The share price, which is very close to a 52-week high, has seen strong momentum, outpacing the market by about 40% during the past year.

Favorable Industry Comparisons

Avon boasts a return on equity (ROE) of 87%, dwarfing the industry average of 11%. The company's net profit margin of 6% compares to an industry average of 3%.

Read the Oct 20 commentary on AVP.

Last Week's Growth and Income Zacks Rank Buy Stocks

Polaris Industries Inc. (PII) recently declared a quarterly dividend of 39 cents per share, which translates into an industry-leading yield of 3.4%. In mid-October, the company announced third-quarter earnings of 94 cents per share, which was below the previous year's $1.13 but 12% ahead of the Zacks Consensus Estimate. Read the whole story on PII.

Phillips-Van Heusen Corp. (PVH) is seeing higher forecasts ahead of reporting third-quarter results next week. The full-year Zacks Consensus Estimate of $2.49 per share was increased from last month's $2.46. Read the whole story on PVH.

Harris Corporation (HRS) recently posted fiscal first-quarter earnings of 83 cents per share, topping the Zacks Consensus Estimate by 9%. The company also hiked its earnings guidance and analysts followed suit. Read the whole story on HRS.

Syntel (SYNT) recently declared a regular quarterly dividend of 6 cents per share, which translates into an industry-leading yield of 0.6%. The company also reported third-quarter earnings of 73 cents per share, eclipsing last year's 54 cents and topping the Zacks Consensus Estimate by 24%. Read the whole story on SYNT.

Zacks Investment Research

(HRS) Harris Corporation – Strong Fundamentals and Robust Momentum

For Immediate Release

Chicago, IL – November 11, 2009 – Four free stock picks are being made available today on Zacks.com. The industry’s leading independent research firm highlights one Zacks #1 Rank Strong Buy or a Zacks #2 Rank Buy stock for each of the four main styles of investing: Aggressive Growth, Growth & Income, Momentum, and Value.

The four highlighted picks are: Starbucks Corporation (SBUX), Harris Corporation (HRS), World Fuel Services Corp. (INT) and United Stationers Inc. (USTR).
    
Today, Zacks is promoting its ''Buy'' stock recommendations. Four daily picks are offered free at http://at.zacks.com/?id=5607

Zacks #1 Rank Stocks have nearly tripled the S&P 500 since 1988, producing an average annual return of +26%. Performance has been notable even during volatile and down times. For example, during the last bear market, 2000-2002, the market tumbled -37.6% – but Zacks #1 Rank stocks gained +43.8%.

Here is a summary of today's selected stocks that are now highly rated by Zacks:          
       
Aggressive Growth – Starbucks Corporation (SBUX)
Starbucks Corporation has been in a turnaround mode the last few quarters. Last week it posted its third earnings surprise in a row. Its turnaround strategy appears to be paying off for shareholders as the stock is now trading at new 52-week highs.

Zacks Guide to Aggressive Growth Investing (free!): http://at.zacks.com/?id=4309

Growth & Income – Harris Corporation (HRS)
Harris Corporation recently posted fiscal first-quarter earnings of 83 cents per share, topping the Zacks Consensus Estimate by 9%. The company also hiked its earnings guidance and analysts followed suit.

Zacks Guide to Growth & Income Investing (free!): http://at.zacks.com/?id=4310
  
Momentum – World Fuel Services Corp. (INT)
World Fuel Services Corp. just reported better than expected Q3 results, making it four out of the last four quarters that the company has beat the Street.

Zacks Guide to Momentum Investing (free!): http://at.zacks.com/?id=4311

Value – United Stationers Inc. (USTR)
United Stationers Inc. has surprised on the Zacks Consensus Estimate 4 consecutive quarters by an average of 28.24% as inventory reduction has boosted the bottom line. The company is trading with a forward P/E of 13.32.

Zacks Guide to Value Investing (free!): http://at.zacks.com/?id=4312

How to Regularly Access Picks from the Zacks Rank Discovery for Free:  http://at.zacks.com/?id=5607
 
Underlying the four free stock picks is a simple truth that first appeared in a Financial Analysts Journal article published in 1979. Leonard Zacks, a Ph.D. in Mathematics from M.I.T. found that "earnings estimate revisions are the most powerful force impacting stock prices."  Zacks #1 Rank is awarded to a stock when analysts sharply upgrade their estimates of what the company will earn.

Today, Zacks is promoting its stock recommendations by offering four daily picks free to those who register at http://at.zacks.com/?id=5607 

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len Zacks. The company continually processes stock reports issued by 3,000 analysts from 150 brokerage firms.  It monitors more than 200,000 earnings estimates, looking for changes.

Then, when changes are discovered, they’re applied to help assign more than 4,400 stocks into five Zacks Rank categories: #1 Strong Buy, #2 Buy, #3 Hold, #4 Sell, and #5 Strong Sell. This proprietary stock-picking system continues to outperform the market by a nearly 3-to-1 margin. 
  
More Free Stock Picks

Each weekday, new Zacks #1 Rank or Zacks #2 Rank stock picks are released on the free email newsletter, Profit from the Pros. Investors are invited to register for their free subscription at http://at.zacks.com/?id=5642

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Zacks.com

Aggressive Growth Stocks:
Contact: Bill Wilton
Phone: 312-265-9277

or

Growth & Income Stocks:
Contact: Alex Kolb
Phone: 312-265-9149

or

Momentum Stocks:
Contact: Michael Vodicka
Phone: 312-265-9226

or

Value Stocks:
Contact: Tracey Ryniec
Phone: 312-265-9232

Email: pr@zacks.com
Visit: www.zacks.com

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.