Weekly Recap: 2026 guidance reaffirmed and Mehta named CEO; promotions

XPeng (XPEV), On Holding (ONON), and L3Harris (LHX) stocks hit 52-week lows due to sector-specific concerns. XPeng reported strong revenue but wider losses, leading to price target cuts. On Holding fell on demand concerns, while L3Harris declined due to high spending and leadership changes.

L3Harris Technologies (LHX) stock rose 1% to $264.50 after Jefferies initiated coverage with a Hold rating and $315 price target, citing uncertainty over leadership changes and the IPO of its Missile Solutions unit. The stock has fallen 25% over six months but has a $42B backlog and raised 2026 revenue guidance to $23-23.5B. Defense peers had no major news.

Xpeng (XPEV), On Holding (ONON), and L3Harris (LHX) hit 52-week lows. XPEV's Q2 revenue rose 49.7% to $2.91B, but net loss widened to RMB 1.34B. Analysts cut XPEV's price targets. ONON fell on weak footwear demand. LHX declined amid spending concerns and leadership changes.

L3Harris Technologies (LHX) reported Q2 FY2026 revenue of $5.88B, up 8.4%, and EPS of $3.13, up 28.3%. Despite growth, shares fell 2.5% post-earnings. Analysts project 10.7% EPS growth for FY2026. The stock has underperformed the S&P 500 and ITA ETF over the past year. Deutsche Bank lowered its price target to $268, maintaining a 'Hold' rating. The mean price target is $366.78, implying 37.5% upside.

RTX and L3Harris (LHX) are benefiting from rising defense budgets and demand for advanced military tech. RTX has a diversified portfolio, including commercial aerospace and defense, and recently secured significant contracts. L3Harris focuses on defense electronics and space tech, with recent wins in electronic warfare and undersea systems. RTX's 2026 sales and EPS are expected to grow 8.4% and 14.8%, respectively, while LHX's are projected to rise 8.2% and 9.4%. RTX's stock has outperformed LHX

Andrew Sather, co-host of The Investing for Beginners Podcast, avoids SpaceX's IPO due to uncertainty and potential insider selling. He prefers profitable space companies: Northrop Grumman (NOC), Lockheed Martin (LMT), and L3Harris (LHX). NOC reported Q2 2026 Space Systems revenue of $2.753B, up 4% YOY. LMT reported Q2 Space revenue of $3.496B, up 6% YOY. LHX reported Space & Mission Systems revenue of $3B, up 7% YOY.