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Melbourne, Florida-based L3Harris Technologies, Inc. (LHX) is an agile global aerospace and defense technology innovator, delivering end-to-end solutions that meet customers' mission-critical needs. With a market cap of $43.8 billion, L3Harris operates through Integrated Mission Systems, Space & Airborne Systems, Communication Systems and Aerojet Rocketdyne segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," L3Harris fits this bill perfectly. Given the company's services span 100+ countries worldwide, its valuation above this mark is not surprising. It provides defense and commercial technologies across space, air, land, sea and cyber domains.
Despite its strengths, LHX has slipped 13.9% from its 52-week high of $265.74 touched on Nov. 11. LHX stock has observed a marginal uptick in the past three months, lagging behind the Dow Jones Industrials Average’s ($DOWI) 8% gains over the same time frame.
L3Harris has underperformed the Dow over the longer term as well. LHX has gained 8.7% on a YTD basis and 13.8% over the past 52 weeks compared to DOWI’s 17.1% surge in 2024 and 21.3% returns over the past year.
To confirm the overall bullish trend and the recent downturn, LHX has traded above its 200-day moving average over the past year and below its 50-day moving average since early December.
L3Harris Technologies’ stock prices surged over 3.5% in the trading session after the release of its impressive Q3 results on Oct. 24. The company has observed strong growth in demand, highlighted by its outstanding 1.4x book-to-bill ratio. Driven by strong organic growth, L3Harris delivered a robust 7.7% year-over-year surge in total revenues, reaching $5.3 billion. The company also reported a notable 4.7% year-over-year increase in non-GAAP EPS to $3.34, which surpassed analysts’ estimates by 2.1%.
Furthermore, driven by its progress in the LHX NeXt initiative which focuses on cost reduction, the company anticipates its segment operating margins to be at least 16% in 2026.
L3Harris has outpaced its peer General Dynamics Corporation’s (GD) 2.2% gains on a YTD basis and 5.2% returns over the past year.
Among the 20 analysts covering the LHX stock, the consensus rating is a “Moderate Buy.” The mean price target of $277.45 represents a staggering 21.2% premium to current price levels.
