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Market analysis Score 35 Neutral

L3Harris Technologies Stock Trails Dow Jones Industrial Average Despite Defense Sector Exposure

Mar 10, 2026 16:56 UTC
LHX, DJIA, ^DJI
Short term

L3Harris Technologies (LHX) has underperformed the Dow Jones Industrial Average (DJIA) over the past 12 months, with a 7.3% gain compared to the DJIA’s 12.8% rise. The defense contractor’s stock has faced headwinds despite strong government contract activity.

  • L3Harris (LHX) gained 7.3% over the past 12 months, underperforming the DJIA’s 12.8% rise
  • The company secured over $12 billion in new defense contracts since January 2025
  • LHX’s P/E ratio is 17.2, below the defense sector average of 20.4
  • Lockheed Martin (LMT) and Raytheon (RTX) outperformed LHX with gains of 15% and 11%
  • Analysts have revised LHX’s growth outlook downward by 4% in the last quarter
  • LHX remains a component of the S&P 500 and key supplier to U.S. military programs

L3Harris Technologies (LHX) has recorded a 7.3% increase in share value over the past 12 months, falling short of the Dow Jones Industrial Average (DJIA), which rose 12.8% during the same period. This divergence highlights growing investor caution toward defense stocks, even amid sustained government spending. The company, a key provider of aerospace and defense systems, has maintained operating margins above 15% and secured over $12 billion in new contracts since January 2025. The broader defense sector has seen mixed sentiment, with Lockheed Martin (LMT) and Raytheon Technologies (RTX) outperforming the DJIA by 15% and 11%, respectively. LHX’s slower growth may reflect concerns over delayed delivery timelines on certain military platforms and elevated supply chain costs. Despite these challenges, L3Harris remains a component of the S&P 500 and a central player in U.S. defense modernization programs. Market analysts note that while LHX’s fundamentals remain solid, the stock’s relative underperformance suggests a preference for companies with more predictable revenue streams. The company’s price-to-earnings ratio of 17.2 is below the defense sector average of 20.4, indicating potential undervaluation, though growth expectations have been revised downward by 4% over the past quarter.

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