L3Harris Technologies Stock: Is LHX Underperforming the Industrials Sector?
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With a market cap of $39.2 billion, L3Harris Technologies, Inc. (LHX) is a global leader in mission-critical solutions for government and commercial customers. The company operates through four segments: Space & Airborne Systems, Integrated Mission Systems, Communication Systems, and Aerojet Rocketdyne, offering advanced technologies in defense, aerospace, and communication.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and L3Harris Technologies fits this criterion perfectly. Its solutions include satellite payloads, tactical radios, ISR systems, propulsion technologies, and public safety communications. Based in Melbourne, Florida, L3Harris continues to innovate in national security, space exploration, and military defense.
However, LHX saw a 20.5% decline from its 52-week high of $265.74. Shares of the technology and communications company declined 5.3% over the past three months, which is slightly less pronounced than the Industrial Select Sector SPDR Fund’s (XLI) 6.3% dip over the same time frame.
In the longer term, LHX stock is up marginally on a YTD basis, outperforming XLI’s 2.3% decline. However, shares of L3Harris have dropped 2% over the past 52 weeks, lagging behind XLI’s 5.1% return over the same time frame.
LHX has been trading below its 50-day and 200-day moving average since December last year.
Shares of L3Harris recovered marginally on Jan. 30 as the company reported Q4 2024 adjusted earnings of $3.47 per share, beating the consensus estimate and marking a 3.6% year-over-year increase. Revenues of $5.5 billion exceeded estimates, driven by strong demand for communication equipment, night vision devices, and increased production in Aerojet Rocketdyne. Additionally, the company’s 2024 adjusted free cash flow of $2.3 billion showed solid growth
In addition, LHX has underperformed its rival, GE Aerospace (GE), which experienced a 15.4% increase on a YTD basis and 41.4% over the past 52 weeks.
Due to LHX’s underperformance over the past year, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 20 analysts' coverage, and as of writing, LHX is trading below the mean price target of $259.91.
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.