L3Harris Technologies (LHX) Could Be 15% Undervalued Following Fresh Defense Contract Wins

L3Harris Technologies (LHX) just lined up a run of fresh defense work, capped by an undefinitized U.S. Navy jammer contract worth about US$876.4m that puts new attention on the stock.

The recent string of contract wins and facility expansions comes after a mixed price run, with L3Harris Technologies’ share price up 6.85% over the past month but down 16.31% across three months, while the total shareholder return over three years is 57.39%. This suggests that long term holders have still seen gains despite this year’s weaker momentum.

Spot opportunities across defense and adjacent contractors by scanning the hand-picked 42 power grid technology and infrastructure stocks.

Bulls point to fresh contracts, new capacity and steady dividend checks. Bears highlight the recent share price slide. Which side does L3Harris Technologies’ current valuation actually lean toward?

Most Popular Narrative: 15% Undervalued

L3Harris Technologies is assigned a fair value of about $300 in the most followed narrative, compared with the last close at $253.97. That gap is where the debate starts around whether recent contract momentum and backlog strength are fully reflected in the current share price.

For me, the key takeaway is not the latest quarter. It is the combination of growing orders, growing backlog, improving margins and rising cash flow all at the same time.

There are plenty of defence stocks benefiting from headlines. Fewer are converting that environment into consistent earnings growth and higher guidance.

See why 4 investors see L3Harris Technologies as 15% undervalued.

Result: Fair Value of $300 (UNDERVALUED)

Still, if defence budgets tighten or execution stumbles on large programs, the current L3Harris Technologies optimism could unwind faster than bullish models assume.

Find out about the key risks to this L3Harris Technologies narrative.

Next Steps

If the split opinion on L3Harris Technologies has your attention, move quickly and test the narrative against the numbers yourself, starting with the 6 key rewards and 1 important warning sign.

Looking for more investment ideas beyond L3Harris Technologies?

If you want a clearer view of where to put your next dollar to work, do not stop at L3Harris Technologies. Let the data surface ideas you might miss on your own.

• Target potential bargains by scanning companies that screen as both financially robust and attractively priced through the 29 high quality undervalued stocks.
• Strengthen your income stream by reviewing businesses that currently appear as 5 dividend fortresses.
• Reduce portfolio stress by focusing on resilient companies that show up in the 30 resilient stocks with low risk scores.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com