L3Harris (LHX) Shares Soar 2.64% on Defense Contracts

L3Harris (LHX) shares surged 2.64% today, marking three consecutive days of gains and rising 4.98% over the past three days. The stock price reached its highest level since November 2024, with an intraday gain of 2.96%.

The strategy of buying LHX shares after they reached a recent high and holding for 1 week showed underperformance. The annualized return was -1.2% over the past 5 years, significantly lower than the market return of 11.2%. This indicates that relying on recent highs to time purchases can be risky, as the stock often failed to recover, resulting in negative returns.

L3Harris Technologies has seen significant advancements in its business operations, particularly with its entry into production with IEE for the 3ATI Electric Warfare system. This development is expected to drive substantial revenue growth and has contributed to the company's recent stock price surge.

Additionally, L3Harris has secured a notable international contract with Belgium's Defense to supply 14 medium-sized T4™ explosive ordnance disposal (EOD) robots. This deal not only highlights the company's expanding global presence but also boosts investor confidence in its defense capabilities.

The defense sector has shown strong market performance, with L3Harris shares surging 1.52% on recent defense news. This upward trend indicates a positive outlook for the company's future prospects in the defense industry.