L3Harris Technologies, Inc. LHX
L3Harris remains a compelling way to play the defense rearmament cycle, with a record $42B backlog, Q2 2026 book-to-bill of 1.2x, revenue up 8% to $5.9B, and EPS up 28% to $3.13—prompting raised full-year guidance. The stock trades at an EV/EBITDA of 17.2, a 21.5% discount to the peer median of 21.9, while FCF has grown to $2.68B (FY2025) and total debt has been reduced from $13.95B (FY2023) to $11.25B (FY2025).
With MACD histogram turning positive and RSI neutral at 51.7 after recovering from oversold levels, technicals no longer work against the fundamental case.
What could go wrong
- Insider net selling. Over 24 months, insiders net sold 50,661 shares worth $67.2M; recent acquisitions are mostly RSU grants (code A), not open-market purchases, and no cluster buy was detected.
- PE premium to peers. LHX trades at 29.3x earnings vs. peer median of 27.8x—a 5.3% premium—despite the EV/EBITDA discount, which could limit multiple expansion.
- Smart money conviction low. Smart money score is only 0.0259 as of March 2026, well below peak levels, though fund count has risen to 57 from 35 a year earlier.
- Stock below key moving averages. Price of $291.82 sits below both the 50-day ($293.36) and 200-day ($315.95) MAs, indicating the prior downtrend has not fully reversed.
What would change my mind
Where this comes from: Business Wire Q2 2026 earnings release · FMP annual fundamentals · FMP annual fundamentals · peer_relative comparison. Orin's read on LHX; not advice.
Twelve months actual closes to 2026-09-23 · actual filings
50-day average 200-day average · volume below
On file
All LHX filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| Vanguard Capital Management | $3.5B | 0.1% of fund |
| Vanguard Portfolio Management | $2.8B | 0.1% of fund |
| State Street | $2.6B | 0.1% of fund |
| Capital World Investors | $1.9B | 0.2% of fund |
| Geode Capital Management | $1.5B | 0.1% of fund |
| Wellington Management Group Llp | $1.4B | 0.2% of fund |
111 filers · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 125 Form 4 filings, net −$64.1M. Of the 50 on hand, 0 were open-market purchases and 4 sales— the rest are grants, option exercises and tax withholding.
Ask Orin about LHX
Orin answers questions about LHX from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →Where it trades
| Metric | Now | Own median | Sector |
|---|---|---|---|
| P/E | 24.0× | 32.5× | 44.5× |
| EV/EBITDA | 14.6× | 17.7× | — |
| P/S | 1.94× | 2.34× | — |
| P/B | 2.1× | 2.2× | — |
Its P/E sits 20th percentile of its own last 5 years (−1.31σ from its own mean).
5.2%
free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $2.7B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.
What Wall Street published
$340
$315 – $365 · +42% against today's price
- 24 buy or overweight
- 7 hold
- 2 underweight or sell
The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.
Against the companies it is compared to
| Company | Market cap | P/E | EV/EBITDA | Gross | Net | ROE |
|---|---|---|---|---|---|---|
| LHXL3Harris Technologies, Inc. | $45B | 24.0× | 14.6× | 25.5% | 8.2% | 9% |
| AMEAMETEK, Inc. | $56B | 35.9× | 24.1× | 36.6% | 20.0% | 15% |
| AXONAxon Enterprise, Inc. | $36B | 181.5× | 85.3× | 59.4% | 6.2% | 6% |
| CARRCarrier Global Corporation | $45B | 37.9× | 20.6× | 24.3% | 5.5% | 9% |
| NOCNorthrop Grumman Corporation | $73B | 16.3× | 11.7× | 20.1% | 10.5% | 27% |
| PCARPACCAR Inc | $59B | 23.5× | 19.1× | 14.9% | 9.2% | 13% |
| ROPRoper Technologies, Inc. | $37B | 15.2× | 10.7× | 69.5% | 30.2% | 13% |
| URIUnited Rentals, Inc. | $64B | 24.9× | 11.8× | 37.1% | 15.7% | 29% |
The median is of the 7 peers listed above and nothing else — check it against the column. This company trades 3.5% below it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.
What it has traded at
What its sector has traded at
Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.
Discounted cash flow
| Model | Fair value | Against | Computed |
|---|---|---|---|
| Standard DCF | $298 | $305.94 · −3% | 2026-06-10 |
| Levered DCF | $233 | $305.94 · −24% | 2026-06-10 |
The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.
Every estimate on one scale
The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.