LHX Stock Analysis — L3Harris Technologies
Sector: Aerospace & Defense
AI Verdict
L3Harris trades at a modest premium to industrials but the numbers say you're getting that growth cheaply if its defense contracts and tech moat keep delivering.
Competitive Moat
L3Harris specializes in mission-critical communications, avionics, and defense electronics for governments and militaries, giving it entrenched positions in long-cycle, high-barrier procurement programs. Its deep integration into defense infrastructure and proprietary secure communications tech make it hard for rivals to displace.
Summary
L3Harris is on watch as a pure-play defense electronics supplier with a sharp 36.1% jump in earnings expected next year.
Where It Stands
Shares are up 13.28% over the past year with an RSI of 38.1 (cooling), and the stock trades at 23.4x next year's earnings versus the industrials sector median of 20x.
Key Metrics
- RSI: 38.1 — Near Oversold
- Trailing P/E: 31.9x
- Forward P/E: 23.4x
- PEG Ratio: 0.87
- Earnings Growth: +0.4%
- Revenue Growth: -0.2%
- Market Cap: $54.7B
- Dividend Yield: 0.02%
- 1-Year Return: 13.28%
- 52-Week High: $379.23
- 52-Week Low: $250.02
Analyst Consensus
18 Buy · 6 Hold · 0 Sell (24 analysts)
Bull Case
You're paying 23.4x forward earnings for a forecasted 36.1% EPS jump, which is cheap for the growth on offer if defense spending holds up.
Bear Case
If the P/E compresses to the sector median of 20x, that's a 15% downside from here even before considering the -20.8% revenue drop last year.
Catalyst to Watch
Watch for new contract wins or defense budget signals, as these could directly validate or undermine the 36.1% EPS growth forecast.