L3Harris Technologies (LHX): Gauging Valuation After Strong Earnings and Multi-Billion Dollar South Korea Contract

L3Harris Technologies (LHX) has drawn attention after reporting higher sales and net income for the third quarter, as well as securing a multi-billion dollar contract with the Republic of Korea Air Force for airborne early warning and control aircraft.

See our latest analysis for L3Harris Technologies.

L3Harris’s solid quarterly results and news of the major South Korea contract helped fuel stronger sentiment, even as recent momentum has eased. After a breakout earlier this year, the stock’s year-to-date share price return stands at an impressive 39.4% and the one-year total shareholder return is 19.1%, underscoring a track record of both short- and long-term value creation.

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Yet with shares not far from their analysts’ targets and a year of strong gains already banked, investors must ask: is L3Harris still undervalued, or is future growth already reflected in the price?

Most Popular Narrative: 10.6% Undervalued

Compared to its last closing price of $289.10, the most widely followed valuation narrative sees L3Harris Technologies trading at a noticeable discount to its fair value estimate. This perspective draws on a blend of future growth expectations, profit margins, and shifts in sector sentiment.

The company’s strong quarterly results and increased future guidance highlight management’s confidence in capturing opportunities from emerging Department of Defense priorities. Some analysts note that growth is beginning to accelerate, which could be a potential catalyst for valuation upside as execution aligns more closely with industry trends.

Read the complete narrative.

Want to see what’s powering this bullish call? The narrative’s calculations hinge on growth forecasts and a bold profit outlook usually reserved for sector disruptors. Just wait until you see which forward assumptions are driving the price target skyward.

Result: Fair Value of $323.28 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained government budget constraints or delays in defense program funding could quickly dampen sentiment and challenge the bullish valuation narrative for L3Harris.

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

Build Your Own L3Harris Technologies Narrative

If you have a different take or simply want to dig into the data and chart your own storyline, you can build your own in a matter of minutes. Do it your way

A great starting point for your L3Harris Technologies research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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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