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Based in Melbourne, Florida, L3Harris Technologies, Inc. (LHX) provides mission-critical solutions for government and commercial customers. Valued at a market cap of $43.5 billion, the company is an aerospace and defense technology innovator, delivering advanced defense and commercial technologies across space, air, land, sea, and cyber domains.
Companies worth more than $10 billion or more are generally described as “large-cap stocks,” and L3Harris Technologies fits right into that category. The company is renowned for its trusted national security solutions, command and control systems and products, tactical radios, night vision equipment, and terrestrial and spaceborne antennas for use in the government, defense, and commercial sectors.
Shares of LHX are trading 6.7% below its 52-week high of $245.60, achieved on Jul. 25. The defense contractor company has gained 3.3% over the past three months, surpassing the broader Nasdaq Composite’s ($NASX) 1.5% decline over the same time frame.
In the longer term, shares of LHX have rallied 36.5% over the past 52 weeks, outpacing NASX’s 22.7% return over the same time frame. However, LHX stock is up 8.9% on a YTD basis, lagging behind NASX’s 12.5% gains.
LHX has been trading above its 200-day moving average since December last year and has remained mostly above its 50-day moving average during the period despite some recent fluctuations, indicating a bullish trend.
LHX has benefitted from certain strategic and proactive decisions taken over the past year, including effective progress made towards achieving $1 billion in cost savings by 2026 through its LHX NeXt initiative, replacing its supplier from Moog Inc. (MOG.A) to Maxar as the former was making late deliveries of satellite buses, affecting the company’s ability to meet its commitments.
Moreover, the stock recovered 2.6% on Jul. 25 following its Q2 earnings release, surpassing Wall Street’s earnings estimates. This was primarily driven by revenue growth in its Communication Systems segment and improvement in the company’s operating income. LHX’s raised full-year EPS guidance further enhanced investor confidence.
However, LHX has lagged behind its rival, RTX Corporation’s (RTX) 44.4% gain on a YTD basis and 45.5% return over the past 52 weeks.
As LHX has outperformed the broader market over the past year, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 18 analysts covering the stock, and the mean price target of $255.70 suggests a premium of 11.5% to its current levels.
On the date of publication, Sohini Mondal 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.
