Here's Why L3Harris Stock Looks Promising for Your Portfolio Now

L3Harris Technologies LHX benefits from its strong position in the U.S. defense market and global reach. The company's planned acquisitions contributed substantially to its overall growth. Given its significant growth, LHX is a good investment opportunity in the Zacks Aerospace-Defense industry.Let us focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.LHX’s Growth Outlook & Surprise HistoryThe Zacks Consensus Estimate for LHX’s 2025 earnings per share (EPS) has increased 0.1% to $10.48 per share over the past 60 days.The Zacks Consensus Estimate for LHX’s 2025 revenues stands at $21.53 billion, which indicates growth of 1%.The company’s long-term (three to five years) earnings growth rate is 12%. LHX surpassed expectations in the last four reported quarters and delivered an average earnings surprise of 2.27%.LHX’s Return to ShareholdersLHX has been increasing its shareholders’ value through regular dividend payments. Currently, the company’s quarterly dividend is $1.20 per share, resulting in an annualized dividend of $4.80. The company’s current dividend yield is 1.85%, better than the industry's average of 1.16%.L3Harris’ Global Reach & Key AcquisitionsL3Harris maintains a strong foothold in the U.S. defense space, while its global presence continues to be impactful. In the first quarter of 2025, the company’s international revenues contributed around 22.5% to its total revenues. The demand for L3Harris’ defense solutions remains solid across regions like Asia-Pacific, Latin America, and South America and among NATO allies of the United States. This is reflected in the multi-million-dollar contracts the company regularly wins from overseas markets.L3Harris continues to drive inorganic growth through impactful acquisitions. In 2024, the company completed the integration of the Aerojet Rocketdyne and Tactical Data Links acquisitions. These strategic acquisitions are expected to generate positive synergies, enhancing both L3Harris’ economies of scale and breadth of its product offerings.LHX’s Return on EquityReturn on equity (ROE) indicates how efficiently a company utilizes shareholders’ funds to generate higher returns. Currently, L3Harris’ ROE is 12.38%, higher than the industry average of 10.73%. This indicates that the company has been utilizing funds more constructively than its peers in the aerospace-defense industry.Overview of LHX’s Debt StructureCurrently, L3Harris’ total debt to capital is 37.98%, much better than the industry’s average of 52.08%.LHX’s times interest earned ratio (TIE) at the end of the first quarter of 2025 was 3.7. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.LHX Stock Price PerformanceIn the past month, L3Harris stock has rallied 3.9% compared with the industry’s growth of 3.6%.Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same sector are GE Aerospace GE, Woodward, Inc. WWD and Curtiss-Wright Corp. CW, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.GE’s long-term earnings growth rate is 15%. The Zacks Consensus Estimate for 2025 EPS is pegged at $5.51, which implies an improvement of 19.8%.Woodward’s long-term earnings growth rate is 13.7%. The Zacks Consensus Estimate for WWD’s fiscal 2025 sales is pegged at $3.45 billion, which calls for an improvement of 3.7%.CW’s long-term earnings growth rate is 12%. The Zacks Consensus Estimate for 2025 revenues stands at $3.39 billion, which indicates growth of 8.7%.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GE Aerospace (GE): Free Stock Analysis Report Curtiss-Wright Corporation (CW): Free Stock Analysis Report Woodward, Inc. (WWD): Free Stock Analysis Report L3Harris Technologies Inc (LHX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks