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L3Harris (LHX) Gains But Lags Market: What You Should Know

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In the latest trading session, L3Harris (LHX - Free Report) closed at $212.29, marking a +0.47% move from the previous day. The stock lagged the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 0.81%.

Heading into today, shares of the technology and communications company had gained 6.45% over the past month, outpacing the Aerospace sector's loss of 0.13% and the S&P 500's gain of 3.55% in that time.

Investors will be hoping for strength from LHX as it approaches its next earnings release, which is expected to be February 4, 2020. On that day, LHX is projected to report earnings of $2.80 per share, which would represent year-over-year growth of 42.86%. Our most recent consensus estimate is calling for quarterly revenue of $4.81 billion, up 188.67% from the year-ago period.

Any recent changes to analyst estimates for LHX should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 has moved 0.62% higher. LHX currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that LHX has a Forward P/E ratio of 18.54 right now. This represents a premium compared to its industry's average Forward P/E of 18.09.

Meanwhile, LHX's PEG ratio is currently 2.32. 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. Aerospace - Defense stocks are, on average, holding a PEG ratio of 2.35 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 21, which puts it in the top 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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