Why Is L3Harris Stock Gaining Monday?

L3Harris Technologies Inc. (NYSE: LHX ) stock rose on Monday following the announcement of seven-year framework agreements to expand propulsion production for the THAAD and PAC-3 missile defense systems.

The stock outperformed the broader market, as the S&P 500 declined 0.30% and the industrials sector fell 0.70%.

THAAD Production Expansion Overview L3Harris signed the agreements with the Department of Defense and Lockheed Martin Corporation (NYSE: LMT ).

The parties expect to finalize both contracts later this year.

The THAAD agreement is expected to quadruple propulsion production and represents L3Harris’ largest THAAD propulsion award to date.

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

THAAD intercepts short-, medium-, and intermediate-range ballistic missile threats and has maintained a 100% success rate in intercept tests since production began.

PAC-3 Propulsion Expansion The PAC-3 Missile Segment Enhancement agreement is expected to nearly triple production of propulsion products supporting the interceptor.

L3Harris will produce two-pulse solid rocket motors, Attitude Control Motors, and Lethality Enhancers, which increase the interceptor’s kill radius.

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

Read Also: Trump’s Golden Dome Push Gets $1.75 Billion Boost, Space Force Orders 36 Missile-Tracking Satellites From Sierra Space and L3Harris Capacity Investments L3Harris is investing billions of dollars to construct 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 Improves L3Harris traded at $304.03, about 4.4% above its 20-day simple moving average and 1.5% above its 50-day moving average.

Those levels suggest short-term momentum remains positive.

However, the longer-term trend remains mixed.

The stock still trades below both its 100-day and 200-day moving averages, while the 50-day moving average remains below the 200-day moving average following a death cross in June.

The MACD indicator remains above its signal line, suggesting buying momentum continues to improve.

The next resistance level sits near $304.50.

Initial support is around $282.50.

Earnings And Analyst Outlook L3Harris is scheduled to report second-quarter results on Wednesday, July 29.

Wall Street expects earnings of $2.82 per share, up from $2.78 a year earlier, 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 forecast of $383.83.

Recent analyst actions include Bernstein lowering its price forecast to $405 while maintaining an Outperform rating, UBS lowering its price forecast to $330 while maintaining Neutral, and Citigroup reaffirming Buy while raising its price forecast to $418.

Price Action LHX Stock Price Activity: L3Harris Technologies shares were up 1.27% at $304.03 at the time of publication on Monday, according to Pro data.

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