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L3Harris (LHX) Stock Sinks As Market Gains: What You Should Know

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L3Harris (LHX - Free Report) closed the most recent trading day at $219.91, moving -0.25% from the previous trading session. This change lagged the S&P 500's 0.03% gain on the day. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.14%.

Prior to today's trading, shares of the technology and communications company had gained 9.56% over the past month. This has outpaced the Aerospace sector's gain of 2.82% and the S&P 500's gain of 3.23% in that time.

Wall Street will be looking for positivity from LHX as it approaches its next earnings report date. This is expected to be February 4, 2020. The company is expected to report EPS of $2.75, up 40.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.81 billion, up 188.67% from the year-ago period.

It is also important to note the recent changes to analyst estimates for LHX. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.39% higher. LHX currently has a Zacks Rank of #2 (Buy).

Investors should also note LHX's current valuation metrics, including its Forward P/E ratio of 19.35. This represents a premium compared to its industry's average Forward P/E of 18.56.

Also, we should mention that LHX has a PEG ratio of 2.42. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. LHX's industry had an average PEG ratio of 2.28 as of yesterday's close.

The Aerospace - Defense industry is part of the Aerospace sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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