L3Harris Technologies, Inc. (LHX) is an aerospace and defense company that develops advanced systems for communications, space, aviation, and security. It supports government and commercial customers with mission-critical technology and services. The company is headquartered in Melbourne, Florida, and focuses on helping customers operate safely, reliably, and effectively in demanding environments. It has a market capitalization of $58.12 billion.
L3Harris’ investors have rewarded the company for its strong position in defense spending, steady earnings performance, and expectations of continued demand from government customers. Over the past 52 weeks, the stock has increased 30.4%, and it is up 6.3% year-to-date (YTD). The stock reached a 52-week high of $379.23 on Mar. 2 but is down 17.7% from that level.
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On the other hand, the broader S&P 500 Index ($SPX) has gained 27.9% and 9.2% over the same periods, respectively, indicating that the stock has outperformed the broader market over the past year, but underperformed YTD. Next, we compare the stock with its own sector. The State Street Industrial Select Sector SPDR ETF (XLI) is up 21.6% over the past 52 weeks and 10.7% YTD. Therefore, the stock has outperformed its sector over the past year but underperformed YTD.
www.barchart.com L3Harris reported stronger-than-expected first-quarter results last month. The company had a strong start to the year with robust order growth. Its revenue increased 11.9% year-over-year (YOY) to $5.74 billion, while its EPS grew 33.3% annually to $2.72. The company’s backlog reached a record $40.70 billion. LHX has also submitted a draft registration related to the proposed IPO of its Missile Solutions business.
For the current quarter, Wall Street analysts expect L3Harris’ EPS to grow marginally YOY to $2.79 on a diluted basis. Moreover, EPS is expected to increase 7.4% annually to $11.52 in fiscal 2026, then increase 17.4% to $13.52 in fiscal 2027. The company has a solid history of surpassing consensus estimates, topping them in each of the four trailing quarters.
Among the 21 Wall Street analysts covering L3Harris’ stock, the consensus is a “Strong Buy.” That’s based on 15 “Strong Buy” ratings and six “Holds.” The ratings configuration has become more bullish than three months ago, with the number of “Strong Buy” ratings increasing from 14 to 15.
www.barchart.com Analysts from Bernstein maintained an “Outperform” rating post the company’s better-than-expected Q1 results. However, the analyst firm also lowered the price target from $435 to $405.
LHX’s mean price target of $390.74 indicates a 25.2% upside over current market prices. Moreover, the Street-high price target of $443 implies a 42% upside.
On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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