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Headquartered in Melbourne, Florida, L3Harris Technologies, Inc. (LHX) is a leading global aerospace and defense technology company with a market cap of $44 billion. Specializing in advanced communications, electronic systems, and space and airborne solutions, L3Harris plays a vital role in providing mission-critical technology and innovative solutions to government and commercial customers worldwide.
Shares of LHX have outperformed the broader market over the past year. The stock has gained 30.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.1%. However, in 2024, LHX is up 10.1% compared to SPX’s 17.2% rise on a YTD basis.
Narrowing the focus, LHX has also outperformed compared to the SPDR S&P Aerospace & Defense ETF (XAR). The exchange-traded fund has gained about 26.9% over the past year. However, the ETF’s 13.2% gains on a YTD outshines the stock’s returns over the same time frame.
LHX reported Q2 earnings on Jul. 25. The company reported a profit of $366 million, or $3.24 per share, surpassing Wall Street expectations of $3.18 per share. Also, the company's revenue of $5.30 billion matched the analysts’ expectations. LHX expects full-year earnings between $12.85 and $13.15 per share, with revenue between $21 billion and $21.3 billion. Following the release of its results, the stock gained 2.6%.
For the current fiscal year, ending in December, analysts expect LHX’s EPS to grow 5.7% year over year to $13.06 on a diluted basis. The company's earnings surprise history is robust. It beat the consensus estimate in all four quarters.
Among the 18 analysts covering LHX stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” six “Holds,” and one “Strong Sell.”
This configuration is less bullish than a month ago, with 12 analysts suggesting a “Strong Buy.”
On Jul. 31, Matthew Akers from Wells Fargo & Company (WFC) maintained a “Buy” rating on L3Harris Technologies, with a price target of $260, implying a potential upside of 12.1% from current levels.
The mean price target is $252.80, representing a premium of 9% compared to LHX’s current price levels. The Street-high price target of $324 suggests an upside potential of 39.7%.
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.
