L3Harris Technologies (LHX) Stock

L3Harris Technologies is expected to announce its 24th straight dividend increase for shareholders in just a few weeks. The company exceeded analysts' predictions for revenue and non-GAAP diluted earnings per share in the third quarter. L3Harris is also close to achieving its desired net leverage ratio.

L3Harris (LHX) is currently considered oversold, which means the intense selling might be coming to an end. Additionally, many Wall Street analysts are in agreement about increasing their earnings forecasts, which could result in a change in the stock's direction.

Investors interested in Aerospace and Defense stocks may have come across L3Harris (LHX) and Airbus Group (EADSY). The question is, which of these two stocks offers a better value opportunity at this moment?

Increased global defense spending shows the importance of protecting democratic stability from growing authoritarian threats, benefiting companies like L3Harris. With a $34 billion backlog and advanced space defense initiatives, L3Harris is expected to grow by 7%-15% as Western nations strengthen their economic and military power. Although high debt and dependence on U.S. contracts present challenges, L3Harris's focus on key geopolitical objectives helps it remain strong against possible economic downturns.

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L3Harris Technologies presents a promising investment option due to its recent drop in stock price, smart acquisitions, and a solid $34 billion backlog in important defense technologies. The company's strong performance in Q3 2024, with an 8% increase in revenue and higher free cash flow, highlights its efficiency and strength. With improved revenue forecasts, cost-saving measures, and a careful approach to reducing debt, LHX is set for ongoing growth and better returns for its shareholders.

L3Harris Technologies is transforming into a company focused solely on defense technology, making key acquisitions such as Aerojet Rocketdyne and Viasat's Tactical Data Links. They aim to save $1 billion by improving workflows and supply chains, using partnerships like the one with Palantir. Their latest financial results indicate a 5% growth in revenue and adjusted earnings per share, with expectations of achieving over a 16% operating margin by the fiscal year 2026.

L3Harris Technologies, Inc. (NYSE:LHX) will be at the UBS Global Industrials Conference on December 4, 2024, at 1:00 PM ET. The company will have Ken Bedingfield, the CFO, and Ross Niebergall, the President of Aerojet Rocketdyne, participating in the session. Gavin Parsons from UBS will be leading the conference call.

LHX has recently won a contract to supply its MIDS JTRS Programmable Radio to the U.S. Navy.