LHX Stock Analysis — L3Harris Technologies
Sector: Aerospace & Defense
AI Verdict
L3Harris trades at 25.3x next year's earnings while analysts expect nearly 30% EPS growth, so you're paying a fair price if its defense tech moat keeps contract momentum alive.
Competitive Moat
L3Harris specializes in mission-critical communications, avionics, and defense electronics for government and military clients, giving it entrenched long-term contracts and high switching costs. Its integration of advanced secure communications and sensor systems, often custom-built for defense agencies, creates a barrier to entry for new competitors.
Summary
A sharp rebound in forward EPS growth expectations (+29.4%) is resetting the valuation narrative after a tough year for revenues.
Where It Stands
L3Harris is up 23.67% over the past year, trades at 25.3x next year's earnings (in line with tech hardware/semis but high for defense), and its RSI of 41.0 signals shares are cooling after recent gains.
Key Metrics
- RSI: 41 — Neutral
- Trailing P/E: 32.8x
- Forward P/E: 25.3x
- PEG Ratio: 1.05
- Earnings Growth: +0.3%
- Revenue Growth: -0.2%
- Market Cap: $56.3B
- Dividend Yield: 0.02%
- 1-Year Return: 23.67%
- 52-Week High: $379.23
- 52-Week Low: $237.56
Analyst Consensus
18 Buy · 6 Hold · 0 Sell (24 analysts)
Bull Case
With analysts forecasting 29.4% EPS growth and the forward P/E dropping to 25.3x, you’re paying a fair price for a rare earnings acceleration if defense budgets hold up.
Bear Case
If the 25.3x forward P/E compresses to the sector's typical 20x, the stock could lose over 20%, especially since trailing revenue shrank 20.8% last year.
Catalyst to Watch
Watch for major contract wins or government budget updates—any sign of sustained order flow or margin expansion would justify the expected EPS rebound.