L3Harris Technologies Inc (LHX, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $231.31, L3Harris Technologies Inc has witnessed a daily gain of 0.15%, marked against a three-month change of 17.92%. A thorough analysis, underlined by the GF Score, suggests that L3Harris Technologies Inc is well-positioned for substantial growth in the near future.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 5/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 9/10
- Momentum rank: 7/10
Each one of these components is ranked and the ranks also have a positive correlation with the long-term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. GuruFocus assigned L3Harris Technologies Inc the GF Score of 92 out of 100, which signals the highest outperformance potential.
Understanding L3Harris Technologies Inc Business
L3Harris Technologies Inc, with a market cap of $43.24 billion, is a prominent player in the command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) market. The company provides a wide range of products, including uncrewed aerial vehicles, sensors, and avionics. Additionally, it offers military and commercial training services and maintains the US Federal Aviation Administration's communications infrastructure. In July 2023, L3Harris Technologies Inc acquired Aerojet Rocketdyne, a key supplier of rocket motors used in the space industry and to propel munitions. The company's sales stand at $21.25 billion, with an operating margin of 10.63%.
Profitability Rank Breakdown
The Profitability Rank shows L3Harris Technologies Inc's impressive standing among its peers in generating profit. The Piotroski F-Score confirms L3Harris Technologies Inc's solid financial situation based on Joseph Piotroski's nine-point scale, which measures a company's profitability, funding, and operating efficiency. L3Harris Technologies Inc's strong Predictability Rank of 4.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, L3Harris Technologies Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 8.5%, which outperforms worse than 52.23% of 291 companies in the Aerospace & Defense industry. Moreover, L3Harris Technologies Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 2.6, and the rate over the past five years is 6.9. This trend accentuates the company's continued capability to drive growth.
Conclusion: A Promising Future for L3Harris Technologies Inc
With its strong financial strength, profitability, and growth metrics, L3Harris Technologies Inc's GF Score highlights the firm's unparalleled position for potential outperformance. The company's strategic acquisitions and consistent operational performance further bolster its market position. As the aerospace and defense industry continues to evolve, L3Harris Technologies Inc is well-equipped to capitalize on emerging opportunities. For investors seeking companies with strong GF Scores, GuruFocus Premium members can explore more options using the following screener link: GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
