L3Harris Technologies Stock To $194?

Our multi-factor assessment suggests that it may be time to sell LHX stock. We have, overall, a pessimistic view of the stock, and a price of $194 may not be out of reach. We believe there are a few things to fear in LHX stock given its overall Weak operating performance and financial condition. This isn’t appropriately reflected in the stock’s Moderate valuation which is why we think it is Unattractive.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $52 Bil in market cap, L3Harris Technologies provides mission-critical ISR systems, space payloads, sensors, and full-mission solutions for government and commercial customers.

[1] Valuation Looks Moderate

This table highlights how LHX is valued vs broader market. For more details see: LHX Valuation Ratios

[2] Growth Is Weak

• L3Harris Technologies has seen its top line grow at an average rate of 8.4% over the last 3 years
• Its revenues have grown 2.9% from $21 Bil to $21 Bil in the last 12 months
• Also, its quarterly revenues grew 2.4% to $5.4 Bil in the most recent quarter from $5.3 Bil a year ago.

This table highlights how LHX is growing vs broader market. For more details see: LHX Revenue Comparison

[3] Profitability Appears Moderate

• LHX last 12 month operating income was $2.4 Bil representing operating margin of 11.1%
• With cash flow margin of 11.7%, it generated nearly $2.5 Bil in operating cash flow over this period
• For the same period, LHX generated nearly $1.7 Bil in net income, suggesting net margin of about 7.9%

This table highlights how LHX profitability vs broader market. For more details see: LHX Operating Income Comparison

[4] Financial Stability Looks Strong

• LHX Debt was $12 Bil at the end of the most recent quarter, while its current Market Cap is $52 Bil. This implies Debt-to-Equity Ratio of 23.3%
• LHX Cash (including cash equivalents) makes up $482 Mil of $41 Bil in total Assets. This yields a Cash-to-Assets Ratio of 1.2%

[5] Downturn Resilience Is Weak

LHX has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• LHX stock fell 40.4% from a high of $270.74 on 7 March 2022 to $161.28 on 5 October 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 24 July 2025
• Since then, the stock increased to a high of $306.76 on 8 October 2025 , and currently trades at $277.78

 
2020 Covid Pandemic

• LHX stock fell 34.7% from a high of $230.04 on 12 February 2020 to $150.22 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 3 August 2021

 
2008 Global Financial Crisis

• LHX stock fell 57.7% from a high of $62.39 on 30 May 2008 to $26.37 on 20 April 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 29 October 2013

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read LHX Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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