L3Harris Technologies Inc. (L3Harris (LHX)) shares climbed Monday after the company announced seven-year framework agreements to dramatically expand production of propulsion systems for two critical missile defense programs: THAAD and PAC-3.

The stock rose 1.27% to $304.03, easily outpacing the broader market. The S&P 500 was down 0.30% on the day, and the industrials sector fell 0.70%.

THAAD Production Gets a Massive Boost

L3Harris signed the agreements with the Department of Defense and Lockheed Martin Corporation (Lockheed Martin (LMT)). Both contracts are expected to be finalized later this year.

The THAAD agreement is a big deal — literally. It's expected to quadruple propulsion production and represents L3Harris' largest THAAD propulsion award to date. THAAD, which stands for Terminal High Altitude Area Defense, intercepts short-, medium-, and intermediate-range ballistic missile threats. The system has a perfect track record: a 100% success rate in intercept tests since production began.

L3Harris manufactures THAAD Solid Rocket Boost Motors in Alabama and Arkansas, and the Liquid Divert and Attitude Control Systems in Los Angeles.

PAC-3: Nearly Tripling Output

The PAC-3 Missile Segment Enhancement agreement is expected to nearly triple production of propulsion products for the interceptor. L3Harris will produce two-pulse solid rocket motors, Attitude Control Motors, and Lethality Enhancers — the latter increase the interceptor's kill radius.

The company manufactures PAC-3 motors in Camden, Arkansas, where upgraded processing and inspection systems have already increased throughput.

Billions in Capacity Investments

To support all this, L3Harris is investing billions of dollars to build approximately 60 facilities and add or upgrade nearly 1 million square feet across sites in Alabama, Virginia, and Arkansas.

"This framework agreement reaffirms L3Harris' proven capability to quickly deliver critical defense systems at the rate the Department of War demands," said Ken Bedingfield, president of Missile Solutions at L3Harris.

Technical Picture: Short-Term Good, Longer-Term Mixed

At $304.03, L3Harris shares are about 4.4% above their 20-day simple moving average and 1.5% above the 50-day moving average. That suggests short-term momentum is positive.

But the longer-term trend is more complicated. The stock still trades below both its 100-day and 200-day moving averages. And the 50-day moving average remains below the 200-day moving average after a death cross in June — a bearish signal.

On the plus side, the MACD indicator is above its signal line, indicating buying momentum is still improving. The next resistance level is around $304.50, with initial support near $282.50.

Earnings on Deck

L3Harris reports second-quarter results on Wednesday, July 29. Wall Street expects earnings of $2.82 per share, up from $2.78 a year ago, on revenue of $5.80 billion, compared with $5.43 billion last year.

The stock trades at about 32.6 times earnings. Analysts maintain a Buy consensus with an average price target of $383.83. Recent analyst moves include Bernstein lowering its target to $405 (Outperform), UBS cutting to $330 (Neutral), and Citigroup raising to $418 (Buy).

So L3Harris has a lot going for it: big government contracts, a clear growth path, and earnings just around the corner. The market seems to like what it sees.