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gurufocus.comSEP 232 min read$LHX

LHX Looks 10.5% Undervalued on GF Value™ as Dividend Remains Att

L3Harris Technologies (LHX) secured an $876.4M contract modification for defense projects. The company offers a 2.05% dividend yield, a 47% payout ratio, and 2.3% annual dividend growth. GuruFocus values LHX at $267.29, suggesting a 10.5% undervaluation. LHX has a GF Score of 84, with strong profitability and growth but moderate financial strength. Insiders sold $9.7M in shares, while 18 gurus hold positions, with mixed activity.

Original reporting
gurufocus.com
Published Sep 23, 2026, 10:35 PM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Sep 23, 2026, 11:55 PM UTC. Informational, not investment advice.
How this was made
AlphAI summarizes source reporting and applies a structured AI analysis for relevance, timing, sentiment and ticker impact. Always verify material claims with the original publisher.
About AlphAI AI DeskScoring methodologyReport an issue
AlphAI market briefMarket movers
Primary signal
$LHX
Bullish
high confidence
Mentioned
$LHX
Relevance
8/10
AlphAI data visualization · based on gurufocus.com
Decision brief

The 30-second read

$LHXBullishMed
01

Why it matters

The contract modification adds significant revenue and may improve LHX's financial strength over time, supporting its undervalued status.

02

Market read

New $876 M contract likely lifts LHX stock and benefits the broader defense sector.

03

What to watch

Financial strength rating is only 5/10; a low Altman Z‑Score could signal balance‑sheet risk.

Relevance 8/10Novelty 8/10Timing: reported on Sep 23 2026 (same‑day release)

Background

GuruFocus analysis highlights LHX's valuation, dividend profile, and GF Score while noting mixed insider activity.

Company-level read

Ticker impact

$LHXBullishHigh confidence
Context

L3Harris announced an $876.4 million contract modification expanding its Next Generation Jammer Low Band system for the U.S. Navy and the Royal Australian Air Force.

Expected impact

Potential upside of 3‑5% over the next week as investors price in higher defense backlog.

Evidence & confidence

Large government contract, cost‑plus‑incentive‑fee structure, and recent dividend attractiveness create a compelling buy signal.

Market effects

Sector

Strengthens outlook for aerospace & defense stocks, especially firms with U.S. Navy contracts.

Regional

Positive for U.S. defense equities and Australian defense suppliers.

Global

Reinforces demand for electronic warfare systems worldwide.

Counterpoint

What could challenge this read

The modest dividend yield and moderate payout ratio may limit upside if earnings growth stalls.

Key entities

  • company
    L3Harris Technologies Inc

    Defense contractor receiving the contract modification.

  • government
    U.S. Navy

    Primary end‑user of the Next Generation Jammer system.

  • government
    Royal Australian Air Force

    Co‑recipient of the defense system.

Read at source← All news

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