L3Harris Technologies (LHX) Shares Soar 0.95% On Contract Wins

L3Harris Technologies (LHX) shares surged 0.95% today, reaching their highest level since November 2024, with an intraday gain of 1.13%.

The strategy of buying LHX shares after they reached a recent high and holding for one week resulted in a 14.22% return over the past five years. However, this was significantly underperformed the benchmark, which delivered a 58.03% return. The strategy also underperformed in terms of volatility and maximum drawdown, with a Sharpe ratio of 0.27 and a maximum drawdown of 0%. These results suggest that this strategy, while generating some returns, came with considerable risk and did not keep pace with the broader market.

L3Harris Technologies has recently secured several significant contracts, which are expected to positively impact its financial performance. One of the notable contracts is for supporting the P-8A Poseidon aircraft, a critical asset for maritime patrol and reconnaissance. Additionally, the company has won a $487.3 million contract for the modernization of enterprise terminals, depot, and engineering. These contracts are likely to enhance L3Harris's revenue streams and operational capabilities, thereby boosting investor confidence.

Analysts have also shown optimism towards L3Harris. Bernstein has maintained a Buy rating for the company with a price target of $286.00. This rating reflects the analysts' confidence in L3Harris's future performance and growth prospects. Such positive analyst sentiment can influence investor decisions, potentially driving up the stock price.