Harris (LHX) closed at $206.21 in the latest trading session, marking a +1.45% move from the prior day. This move outpaced the S&P 500's daily gain of 0.8%. At the same time, the Dow added 0.47%, and the tech-heavy Nasdaq gained 1.12%.
Prior to today's trading, shares of the technology and communications company had lost 4.86% over the past month. This has lagged the Aerospace sector's loss of 1.95% and the S&P 500's loss of 1.07% 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 $2.40 per share. This would mark year-over-year growth of 34.83%. Our most recent consensus estimate is calling for quarterly revenue of $4.41 billion, up 186.02% from the year-ago period.
Any recent changes to analyst estimates for LHX should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. LHX is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, LHX currently has a Forward P/E ratio of 21. For comparison, its industry has an average Forward P/E of 17.67, which means LHX is trading at a premium to the group.
We can also see that LHX currently has a PEG ratio of 2.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Aerospace - Defense was holding an average PEG ratio of 2.01 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow LHX in the coming trading sessions, be sure to utilize Zacks.com.
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