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Here's Why You Should Add L3 Technologies (LLL) Stock Now

Zacks Equity Research

Earnings estimates for L3 Technologies Inc. LLL for 2019 and 2020 have moved up 9.58% and 12.04% on a year-over-year basis to $11.78 and $13.20, respectively. Revenue estimates for 2019 and 2020 rose 6.86% and 5.85% on a year-over-year basis to $10.95 billion and $11.59 billion, respectively.

Let’s focus on the factors that make the stock an appropriate pick at the moment.

Zacks Rank &Surprise History

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company has an average four-quarter positive earnings surprise of 9.65%.

Price Performance & Long-Term Growth

In the past 12 months, L3 Technologies’ shares have rallied 33.2% compared with the industry’s rise of 22.5%.

The company’s long-term (3 to 5 years) earnings growth is pegged at 13.50%.

Debt/Capital &Current Ratio

L3 Technologies is consistently striving to preserve balance-sheet strength. Currently, the company has a current ratio of 2.02. Its financial strength will enable the company to meet near-term debt obligation. Its long-term debt-to-capital ratio is 35.19%, which is lower than the Zacks S&P 500 composite’s level of 43.11%.

Solid Backlog

The company raised 2019 guidance on expectations of 6.5% growth year over year. The upside was backed by high-funded backlog of $10.40 billion as of Mar 29, 2019, up 7% from $9.70 billion as of Dec 31, 2018. An increase in backlog indicates toward the quality of products supplied by the company and willingness of the customers to wait for the same.

Other Key Picks

Some other top-ranked stocks from the same sector are Aerojet Rocketdyne Holdings, Inc AJRD, Astronics Corporation ATRO and HEICO Corporation HEI. All the three stocks sport a Zacks Rank of 1.

Aerojet Rocketdyne pulled off an average positive earnings surprise of 36.67% in the last four quarters. The company’s long-term earnings growth is pegged at 5.50%

Astronics came up with an average positive earnings surprise of 22.55% in the last four quarters. The company’s long-term earnings growth is pegged at 10%

HEICO pulled off an average positive earnings surprise of 9.47% in the last four quarters. The company’s long-term earnings growth is pegged at 13.50%

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