L3Harris (LHX) Soars 6.8%: Is Further Upside Left in the Stock?

Group 1: Company Overview - L3Harris (LHX) shares increased by 6.8% to close at $214.35, with trading volume significantly higher than usual, contrasting with a 5.5% loss over the past four weeks [1][2] - The recent rise in LHX's share price is linked to the U.S. President's announcement of a substantial increase in defense spending, with approximately $1 trillion allocated to defense in the upcoming fiscal 2026 budget [2] Group 2: Earnings Expectations - L3Harris is projected to report quarterly earnings of $2.55 per share, reflecting a year-over-year decline of 16.7%, while revenues are expected to reach $5.25 billion, a slight increase of 0.8% from the previous year [3] - The consensus EPS estimate for L3Harris has been revised down by 0.6% over the last 30 days, indicating a negative trend in earnings estimate revisions, which typically does not lead to price appreciation [4] Group 3: Industry Context - L3Harris is part of the Zacks Aerospace - Defense industry, where another company, Textron (TXT), saw a 9.6% increase in its stock price, closing at $66.78, despite a -17.3% return over the past month [4] - Textron's consensus EPS estimate remains unchanged at $1.23, representing a 2.5% increase from the previous year, and it also holds a Zacks Rank of 3 (Hold) [5]