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    L3Harris Technologies (LHX) Could Be 29% Undervalued On Its $6b THAAD Contract

    Simply Wall St·10/11/2026 09:27:41
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    L3Harris Technologies (LHX) just secured an undefinitized contract from Lockheed Martin valued at more than US$6 billion over seven years to ramp up propulsion production for the THAAD missile defense system.

    For context, L3Harris Technologies is trading at US$236.97, with the share price down 17.9% over the past 90 days and the year-to-date share price return lower by 22.2%, even though the three year total shareholder return is 41.6% and the five year total shareholder return is 9.5%. This mix of weaker recent share price performance and positive multi year total shareholder returns suggests momentum has faded in the short term while long term holders have still seen gains. As a result, news of large, multi year defense contracts like the THAAD and PAC 3 propulsion awards may now be reframing expectations around future revenue visibility and risk.

    Compare this contract driven story at L3Harris Technologies with other defense focused opportunities by scanning our hand picked list of 43 power grid technology and infrastructure stocks.

    L3Harris Technologies now trades well below both analyst targets and one intrinsic value estimate, even after this THAAD contract win. Is that discount a margin of safety, or a warning sign about market caution?

    Most Popular Narrative: 29% Undervalued

    L3Harris Technologies closed at $236.97, while the most followed narrative anchors fair value at $335.33. The THAAD contract therefore lands against a backdrop of what that framework views as a sizeable discount supported by a large backlog and missile exposure.

    The main factor that has to go right is that L3Harris Technologies executes on its large missile and space programs while managing supply chain constraints so that high book to bill and international demand are reflected in margins and cash flow.

    See why 98 investors see L3Harris Technologies as 29% undervalued.

    Result: Fair Value of $335.33 (UNDERVALUED)

    Still, the L3Harris Technologies story could be knocked off course if supply chain issues drag on or if governance concerns around the CEO change deepen.

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

    Next Steps

    Mixed feelings on L3Harris Technologies after this contract news. If you want to move quickly and build your own view from the ground up, you can start by weighing the 6 key rewards and 1 important warning sign.

    Looking for more investment ideas beyond L3Harris Technologies?

    If you stop with L3Harris Technologies, you risk missing other opportunities that fit your style, so put a few minutes aside and widen your field of view.

    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.