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Melbourne, Florida-based L3Harris Technologies, Inc. (LHX) is a prominent player in the aerospace and defense sector, specializing in developing and manufacturing advanced technology solutions for government and commercial customers. With a market cap of $42.39 billion, LHX is a crucial entity in the defense industry, providing cutting-edge communications, electronic warfare, and avionics systems. Competing fiercely with other aerospace and defense companies, L3Harris's primary rival is Northrop Grumman Corporation (NOC), renowned for its innovative defense technologies and commitment to national security.
Companies valued at $10 billion or more are generally considered "large-caps," and L3Harris Technologies fits this criterion perfectly, signifying its substantial size, stability, and influence in the aerospace and defense sector.
LHX shares are trading 2% below their 52-week high of $228.13, which they hit on Jun. 24. Also, the stock has gained 5.9% over the past three months, marginally outperforming the S&P 500 Index’s ($SPX) 5.3% returns over the same time frame.
Longer term, LHX is up 6.1% on a YTD basis, and the shares have gained 16.6% over the past 52 weeks. In comparison, the S&P 500 has gained 14.8% in 2024 and 26.5% over the past year.
However, LHX has been trading above its 200-day moving average since late November 2023 and 50-day moving average since late April.
LHX reported its Q1 results on Apr. 25. The company reported a profit of $283 million, translating to $1.48 per share. Adjusted for non-recurring costs, earnings were $3.06 per share, surpassing Wall Street expectations of $2.89 per share. The company's revenue for the period was $5.21 billion, exceeding the anticipated $5.11 billion.
For the full year, L3Harris projects earnings between $12.70 and $13.05 per share, with revenue expected to range from $20.8 billion to $21.3 billion. The stock declined marginally on the earnings release day and 3.5% the following day.
Highlighting the contrast in performance, rival NOC has underperformed both LHX and SPX, with a 7.8% decline on a YTD basis.
Despite LHX's underperformance compared to SPX this year, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 20 analysts in coverage. The mean price target of $247.68 reflects a 10.8% premium over current levels.
On the date of publication, Rashmi Kumari 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.
