L3Harris (LHX) shares soared 6.8% in the last trading session to close at $214.35. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.5% loss over the past four weeks.
The latest uptick in LHX’s share price can be attributed to the recent announcement made by the U.S. President indicating a big boost in defense spending as part of the upcoming U.S. fiscal 2026 budget. Notably, U.S. President Donald Trump said yesterday (9th April) that the government has "essentially approved a budget" that would allocate about $1 trillion to defense.
This technology and communications company is expected to post quarterly earnings of $2.55 per share in its upcoming report, which represents a year-over-year change of -16.7%. Revenues are expected to be $5.25 billion, up 0.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For L3Harris, the consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LHX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
L3Harris is a member of the Zacks Aerospace - Defense industry. One other stock in the same industry, Textron (TXT), finished the last trading session 9.6% higher at $66.78. TXT has returned -17.3% over the past month.
For Textron , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.23. This represents a change of +2.5% from what the company reported a year ago. Textron currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
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