In the latest trading session, Harris (LHX) closed at $204.07, marking a +1.84% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.19%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 0.81%.
Prior to today's trading, shares of the technology and communications company had lost 5.75% over the past month. This has lagged the Aerospace sector's loss of 4.89% and the S&P 500's gain of 0.56% in that time.
Investors will be hoping for strength from LHX as it approaches its next earnings release, which is expected to be October 30, 2019. In that report, analysts expect LHX to post earnings of $2.39 per share. This would mark year-over-year growth of 34.27%. Meanwhile, our latest consensus estimate is calling for revenue of $4.45 billion, up 188.66% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for LHX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. LHX is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that LHX has a Forward P/E ratio of 20.71 right now. This represents a premium compared to its industry's average Forward P/E of 17.13.
It is also worth noting that LHX currently has a PEG ratio of 2.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Aerospace - Defense stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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L3Harris Technologies Inc (LHX) : Free Stock Analysis Report
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