Shares of L3Harris Technologies Inc. (LHX) moved higher on Thursday. Here's what's driving the action.

Mercury Systems Lands a Key Deal

Mercury Systems Inc. (MRCY) said Thursday it won a contract from L3Harris to supply solid-state data recorders for the U.S. Space Development Agency's Tranche 3 Tracking Layer. This isn't a one-off; Mercury has supported all prior tranches of this program and recently finished deliveries for Tranche 2.

For this new batch, L3Harris is building 18 infrared satellites. The goal? To strengthen something called the Proliferated Warfighter Space Architecture, which is essentially a network aimed at tracking advanced missile threats—including the tricky-to-detect hypersonic weapons. Mercury will provide its highest-capacity solid-state data recorder for the job, designed for high performance and long-term data integrity.

Not Just Satellites: L3Harris and the Moon

Beyond this new contract, L3Harris has been busy in space closer to home. The company supported the recent Artemis II mission, which is set to be the first crewed journey to the moon in over 50 years.

Its contribution was substantial: the company delivered more than 100 components. This included RS-25 engines for the core stage of the massive Space Launch System rocket, the RL10 engine for the Interim Cryogenic Propulsion Stage, and the main engine for the Orion spacecraft. It also supplied in-space thrusters for course corrections, 40 advanced avionics units for navigation and monitoring, and even the audio system inside Orion for astronaut communications.

What the Charts Say About L3Harris Stock

Let's talk about the stock itself. At $360.23, L3Harris is trading 0.9% above its 20-day simple moving average and 1.7% above its 50-day average. That suggests a bullish short-term trend. The longer-term picture looks even stronger: the stock is trading 10.7% above its 100-day average and a hefty 19.8% above its 200-day average. That's a clear sign of strong momentum and sustained buyer interest.

The Relative Strength Index (RSI) is sitting right at 50.04, which is perfectly neutral—the stock isn't overbought or oversold here. However, the Moving Average Convergence Divergence (MACD) indicator is currently in bearish territory, which can signal some potential selling pressure.

• Key Resistance: $374.50 — a level where sellers might start to emerge.
• Key Support: $355.50 — a level where buyers could step back in.

The 12-month performance tells a strong story: a 70.00% return. The stock is also hovering near its 52-week high of $379.23, which points to solid demand and positive sentiment.

Earnings and What the Analysts Think

The company's next financial update is scheduled for April 30, 2026. Here's what the market is expecting:

• EPS Estimate: $2.58 (up from $2.41 previously)
• Revenue Estimate: $5.37 billion (up from $5.13 billion)
• Valuation: A P/E ratio of 41.5x, which indicates the stock carries a premium price tag.

The analyst consensus remains a Buy rating. The average price target sits at $309.15, but several firms have recently raised their sights much higher:

• Citigroup: Buy rating, raised target to $418.00 (Feb. 5)
• JP Morgan: Overweight rating, raised target to $395.00 (Feb. 5)
• Morgan Stanley: Overweight rating, raised target to $390.00 (Feb. 2)

A Snapshot of Strengths and Weaknesses

Looking at various financial metrics paints a clear picture of where L3Harris stands:

• Value: Score of 19.62 — Confirms the stock is trading at a steep premium compared to its peers.
• Growth: Score of 34.07 — Suggests moderate growth potential.
• Quality: Score of 78.36 — Points to a strong balance sheet and efficient operations.
• Momentum: Score of 88.09 — The stock is decisively outperforming the broader market.

The verdict from these scores? L3Harris has a strong momentum-driven story backed by solid fundamentals, but you're paying up for it.

ETF Exposure: Why Fund Flows Matter

L3Harris isn't just a stock; it's a key piece of several popular exchange-traded funds (ETFs). This means money moving in and out of these funds can automatically create buying or selling pressure on the stock.

• iShares U.S. Aerospace & Defense ETF (ITA): 4.77% Weight
• Global X Defense Tech ETF (SHLD): 4.67% Weight
• Invesco Aerospace & Defense ETF (PPA): 4.35% Weight

Thursday's Market Move

Wrapping up the session, L3Harris Technologies shares were up 1.89% at $360.60. Mercury Systems shares, beneficiary of the new contract, were up 0.67% at $75.25.