Shares of L3Harris Technologies (LHX) are nudging higher on Wednesday. The reason? The defense contractor is making a billion-dollar bet on going faster—specifically, on making more solid rocket motors.
The company announced a major expansion of its production capacity, with plans to invest more than $1 billion to create what it's calling the Virginia Advanced Propulsion Facilities. This isn't just a minor upgrade; the project is expected to double the manufacturing space at its Orange County, Virginia site and create over 350 new jobs there. The move is being done in collaboration with Virginia Governor Abigail Spanberger and the Orange County Board of Supervisors.
Think of it as the company building a bigger factory to make more of the things that make missiles and rockets go. "L3Harris' continued investments in solid rocket motor facilities are bolstering manufacturing capacity for key national defense programs," said Ken Bedingfield, president of Missile Solutions at L3Harris.
And Virginia isn't the only place getting an upgrade. L3Harris said it's also modernizing and expanding production at its sites in Camden, Arkansas, and Huntsville, Alabama. The company claims these combined investments "will enable it to double, triple and quadruple solid rocket motor production rates for a range of key programs." That's a lot of multiplying.
What the Charts Are Saying
So, the company is spending big to make more stuff. What does the market think of the stock itself?
Technically, L3Harris is in a strong upward trend. It's currently trading 16.5% above its 200-day simple moving average, which is a good sign of long-term momentum. It's also 7.5% above its 100-day average, pointing to positive shorter-term trends.
The Relative Strength Index (RSI) is sitting at 50.33, which is about as neutral as it gets—neither overbought nor oversold. The MACD indicator is in a bullish configuration, suggesting potential for the upward move to continue.
For traders watching levels, $374.50 is seen as a key resistance point the stock needs to break through, while $355.50 is viewed as important support to hold.
Earnings on the Horizon and What the Analysts Think
The company is scheduled to report its next batch of financial results on April 30, 2026. The expectations are for growth: analysts are estimating earnings per share of $2.58, up from $2.41, and revenue of $5.41 billion, up from $5.13 billion.
It's not a cheap stock, trading at a price-to-earnings ratio of 41.7x, which indicates a premium valuation. But the analyst community seems to think it's worth it. The consensus rating is a Buy, with an average price target of $383.40.
Several big banks have recently raised their targets:
- Citigroup: Maintained a Buy rating and raised its target to $418.00 on February 5.
- JP Morgan: Maintained an Overweight rating and raised its target to $395.00 on February 5.
- Morgan Stanley: Maintained an Overweight rating and raised its target to $390.00 on February 2.
A Snapshot of Strengths and Weaknesses
Looking at the company's profile compared to the broader market reveals a mixed picture. Its Value score is weak, at 20.85, reflecting that premium valuation. Its Growth score is neutral at 33.44. But it shines in two areas: Quality, with a strong score of 75.84, and Momentum, with a bullish score of 79.86. The takeaway? It's a high-quality company that's currently outperforming, but you're paying up for it.
ETF Exposure: Why Fund Flows Matter
L3Harris isn't just a standalone stock; it's a meaningful piece of several popular exchange-traded funds. This means when money moves into or out of these ETFs, it can force automatic buying or selling of LHX shares.
Key ETF holdings include:
Price Check
Putting it all together, L3Harris Technologies shares were up 0.27%, trading at $356.53 on Wednesday.
