Strength Seen in L3Harris (LHX): Can Its 3.9% Jump Turn into More Strength?
L3Harris (LHX) shares soared 3.9% in the last trading session to close at $208.08. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 6.8% gain over the past four weeks.
The recent uptick in the share price of L3Harris Technologies can be attributed to the detailed financial objectives that the company showcased at its latest Investor Day. LHX has announced its aim to drive operational improvements for enhancing productivity, reduce expenses, drive margin expansion and generate strong cash flow.
This technology and communications company is expected to post quarterly earnings of $3.30 per share in its upcoming report, which represents a year-over-year change of +0.9%. Revenues are expected to be $5.19 billion, up 13.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For L3Harris, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LHX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
L3Harris is part of the Zacks Aerospace - Defense industry. Northrop Grumman (NOC), another stock in the same industry, closed the last trading session 1.2% higher at $485.01. NOC has returned 2.7% in the past month.
Northrop Grumman's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $5.77. Compared to the company's year-ago EPS, this represents a change of -23.1%. Northrop Grumman currently boasts a Zacks Rank of #3 (Hold).
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L3Harris Technologies Inc (LHX) : Free Stock Analysis Report
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