L3Harris Stock And 2 Defense Picks With Long Term Contract Demand

Aerospace and defense stocks sit at the crossroads of global trade, government spending and long-cycle industrial demand, which is front of mind for investors watching inflation trends, energy prices and sovereign balance sheets. With export powerhouses like South Korea in focus, eurozone inflation still above target and bond yields elevated in major markets, many investors are looking for sectors where demand is often tied to long-term contracts and government commitments. This Aerospace And Defense screener filters for companies directly supplying equipment and services to this space. In this article you will see three stocks from the screener that stand out for closer research.

L3Harris Technologies (LHX)

Overview: L3Harris Technologies is a US aerospace and defense company that builds mission critical systems for space, air, land and sea, from missile warning satellites and hypersonic missile propulsion to battlefield communications and night vision equipment for government and commercial customers worldwide.

Market Cap: US$50.6b

L3Harris Technologies sits in the thick of priority US and allied defense programs, with record backlog, rising 2026 revenue and earnings guidance, and fresh contract wins across missile propulsion and space based missile tracking that help underpin its role in the current upgrade cycle. The stock trades on a lower P/E than many US aerospace and defense peers, while analysts and the Simply Wall St cash flow estimate see meaningful upside relative to the current price. At the same time, high debt levels, reliance on fixed price development work and exposure to US budget decisions mean execution errors or policy shifts could quickly bite into margins. If you want exposure to missile defense, space and secure communications, L3Harris is a company worth watching closely to see whether it can convert its backlog into sustained, higher quality earnings.

L3Harris appears to offer a rare combination of strong backlog and a lower P/E than many peers, yet the real story sits inside the 6 key rewards and 1 important warning sign that could influence how you view the stock.

Intuitive Machines (LUNR)

Overview: Intuitive Machines is a Houston based space infrastructure company that designs and operates lunar landers, space cargo services and a lunar data network, helping government and commercial customers deliver payloads to the Moon and transmit mission critical data using AI supported services.

Operations: Intuitive Machines generates US$334.3m in revenue from aerospace and defense services, all currently sourced from customers in the United States.

Market Cap: US$2.7b

Intuitive Machines provides pure play exposure to the push toward a sustained lunar presence, with Nova series landers, lunar relay satellites and a growing services stack built around long term NASA and defense work. Forecasts referenced in the market point to rapid earnings and revenue growth, and recent NASA lunar awards and a reported order backlog above US$1b indicate that the business already has substantial contracted work in hand. At the same time, the company remains unprofitable, relies heavily on one customer, has used higher risk funding and has seen recent dilution and insider selling, which adds volatility and execution risk. For investors comfortable with speculative space stocks, the balance of potential reward and risk here may warrant closer attention beyond the headline story.

Intuitive Machines sits at the crossroads of lunar ambition and funding strain, with US$334.3m in revenue and a reported backlog above US$1b. Before you assume this story is all upside, the 2 key rewards and 3 important warning signs (1 is major!) hints at a twist investors often miss

Moog (MOG.A)

Overview: Moog is a US based engineering company that supplies precision motion and fluid control systems used in fighter jets, commercial aircraft, missiles, satellites, industrial automation, medical equipment and simulation platforms for customers worldwide.

Market Cap: US$13.2b

Moog has caught investors’ attention because it sits in the middle of rising demand for defense hardware, automation and aftermarket services, with Q3 2026 results showing solid sales and earnings, plus raised full year net sales guidance to US$4.4b. Earnings growth has been strong in recent years and margins have improved to 6.8%, helped by efficiency programs and focused R&D that support products in areas like hypersonics and space. At the same time, a rich P/E multiple, high debt, ongoing tariff pressure and slower forecast revenue growth than the wider US market mean expectations are already demanding. The key issue is whether Moog’s defense and industrial exposure, cash flow profile and acquisition plans justify that premium or call for more caution from here.

Moog’s premium P/E, rising margins and exposure to defense and automation make the story look straightforward; yet the real tension sits inside the 2 key rewards and 2 important warning signs that could reshape how you view its next chapter

The three aerospace and defense stocks covered here are only a starting point, since the full Aerospace And Defense screener surfaces 66 more companies that share equally compelling narratives around mission critical hardware, services and long term contracts. Use Simply Wall St to identify, analyze and filter for the exact catalysts, contract profiles and balance sheet traits that matter to you, so you can focus on the highest conviction ideas in this sector.

Take Control of Your Investment Journey

If L3Harris Technologies or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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