LHX Stock Analysis — L3Harris Technologies
Sector: Defense & Aerospace
AI Verdict
L3Harris trades at 21.3x next year's earnings for 35.3% expected EPS growth—cheap for the growth if defense spending and contract renewals hold up, but the moat is only as strong as government budgets.
Competitive Moat
L3Harris specializes in secure communications, ISR (intelligence, surveillance, reconnaissance) systems, and mission-critical defense electronics, with deep integration into U.S. military procurement cycles. Its moat comes from long-term defense contracts, high switching costs for military customers, and proprietary secure communications technology.
Summary
L3Harris is notable right now for its expected 35.3% jump in earnings next year despite a recent revenue decline.
Where It Stands
Shares are up 2.52% over the past year, RSI sits at a neutral 50.2, and the stock trades at 21.3x next year's earnings versus a 20x sector median for industrials.
Key Metrics
- RSI: 50.2 — Neutral
- Trailing P/E: 28.8x
- Forward P/E: 21.3x
- PEG Ratio: 0.81
- Earnings Growth: +0.4%
- Revenue Growth: -0.2%
- Market Cap: $53.1B
- Dividend Yield: 0.02%
- 1-Year Return: 2.52%
- 52-Week High: $379.23
- 52-Week Low: $262.68
Analyst Consensus
17 Buy · 6 Hold · 0 Sell (23 analysts)
Bull Case
With analysts forecasting 35.3% EPS growth and a forward P/E of 21.3x, you're paying a fair price for robust expected earnings acceleration.
Bear Case
If the multiple falls from 21.3x to the sector median of 20x, that would mean a roughly 6% haircut even before any further revenue disappointments.
Catalyst to Watch
Watch for new contract wins or defense budget updates, as these could confirm whether the 35.3% EPS growth forecast is realistic.