Harris Corp. (HRS - Analyst Report) recently announced that it has won an order worth $23 million from a Middle East-based company, to supply Falcon III tactical radios, accessories, software, service and support in order to modernize its departments.
The order to be delivered to the Middle East country belongs to the Harris Falcon III RF-7800 range which includes lightweight RF-7800S that supports two-way voice and data communications around lightweight RF-7800S for wideband mobile ad-hoc networking; and the RF-7800W High-Capacity Line-of-Sight Internet Protocol radio which offers super-fast data backhaul service. Apart from that, Harris will also supply networking components, accessories and spares to that nation.
The Falcon III wideband technology facilitates faster transmission of data, voice and video in a secure manner and is gaining huge popularity within the defense sector of many countries worldwide. Moreover, these tactical radios also support video streaming, delivery of data and information across wideband networks during warfare.
Presently, Harris is showing more interest in expanding its international presence by supplying its technology to emerging economies like Brazil, Russia, India, and China as well as Latin American, Asia-Pacific, and African regions. Currently, the company has a sustainable and diversified product pipeline with a potential market size of $15 billion.
As a leading government electronics supplier, Harris is benefiting from favorable global market conditions globally. In fact, emerging economies and like Brazil, Russia, India, and China together with Latin American, Asia-Pacific, and African regions have paved the way for the company’s growth over the long term.
Harris currently carries a Zacks Rank #4 (Sell).
Other Stocks to Consider
While we prefer to avoid Harris until we see signs of improvement in the company's performance, other stocks in this industry that are worth considering include ShorTel Inc. (SHOR - Snapshot Report), Ubiquiti Networks Inc. (UBNT - Analyst Report) and InterDigital Inc. (IDCC - Snapshot Report). While ShorTel and Ubiquiti currently have a Zacks Rank #1 (Strong Buy), InterDigital has a Zacks Rank #2 (Buy).