Sell: L3Harris Technologies, Inc. (LHX)
From Dow Theory Forecasts
Updated from Wall Street’s Best Investments 827, March 19, 2020
For the June quarter, defense contractor L3Harris Technologies reported adjusted earnings per share of $2.83, up 13% and $0.25 above the consensus. We see few catalysts in the coming months to turn around a stock 13% lower for the year. The company’s heavy reliance on the U.S. government is helping stabilize operations during the pandemic but may offer limited upside, given that rising U.S. debt levels from combating the coronavirus could constrain future growth in military spending. L3Harris is now rated B (average) on the Monitored List and should be sold.
Richard Moroney, CFA, Dow Theory Forecasts, dowtheory.com, 800-233-5922, August 10, 2020