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HARMAN International Industries (HAR - Snapshot Report) has entered a new growth phase as it aggressively expands in the hot BRICs. This Zacks #1 Rank (strong buy) has the magical combination of both growth and value, as earnings are expected to jump by the double digits and it sports a forward P/E of just 14.

HARMAN manufactures audio and infotainment solutions for autos, home and professional markets. Its brands include AKG, Harman Kardon, Infinity, JBL, Lexicon and Mark Levinson.

Auto customers include Ferrari, BMW and Audi, among others.

The company introduced the first car radio in 1949 and also makes cinema sound systems.

On Nov 10, HARMAN announced it would build a new manufacturing facility in Dandong, China to develop advanced audio components and systems for western, Asian and Chinese automakers.

The company has contracts from Chinese automakers such as Geely Motors, BYD and Dongfeng Passenger Vehicle.

This will be the fourth Chinese manufacturing facility. The company has been doing business in China for 20 years and now employs 1200 people.

Zacks Consensus Estimates Rise After HARMAN Revises Guidance

On Oct 26, HARMAN issued fiscal 2012 guidance of earnings per share in the range to $2.75 to $3.00. This was above the Zacks Consensus which has since jumped to $2.81 from $2.55.

That is earnings growth of 35.3%. The company made just $2.08 in fiscal 2011.

It also raised previous guidance it issued for fiscal 2013 to $3.75 to $4.00 per share.

Once again, the analysts were a little behind the curve and have since raised estimates. That has pushed the Fiscal 2013 Zacks Consensus up to $3.78 from $3.51 in the last month.

That is also earnings growth of 34.2%.

The company cited rapid growth in the emerging markets as one of the keys to the higher full year guidance.

Sales Rose 26% in the Fiscal First Quarter of 2012

On Oct 21, HARMAN reported its fiscal first quarter 2012 results and surprised on the Zacks Consensus by 38%. Earnings per share were 60 cents compared to the consensus of just 50 cents. It made just 35 cents in the year ago period.

Sales jumped 26% to $1.05 billion and even excluding foreign currency translation, sales were still up 19%. BRIC sales soared 91% as the company added to its global market share.

The infotainment and audio backlog also remained at a record high of $14.5 billion.

HARMAN Is a Value Stock

Like the rest of the stock market, shares of HARMAN fell over the turbulent summer only to rally in October. However, they have lost some of the October momentum and are again looking weak.

But that just means the shares have even more attractive valuations.

In addition to a P/E under 14, HARMAN also has a price-to-book ratio of 1.9. A P/B under 3.0 usually indicates value.

The company also has a price-to-sales ratio of just 0.7. A P/S under 1.0 can mean a company is undervalued.

Additionally, HARMAN has a 1-year return on equity (ROE) of 12.7%.

Tracey Ryniec is the Value Stock Strategist for She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her on twitter at traceyryniec.

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