Entering text into the input field will update the search result below

With Significant Potential, L3Harris Remains My Favorite Deep Value Dividend Stock

Nov. 19, 2023 10:25 PM ETL3Harris Technologies, Inc. (LHX)22 Comments


  • I'm putting a heavy focus on aerospace, defense, and REITs, with a keen interest in key players like Lockheed Martin, Northrop Grumman, RTX Corp., and L3Harris Technologies.
  • Due to global tensions, defense stocks, including L3Harris, are holding strong. The company's solid performance, diverse segments, and smart moves in the space industry are contributing to its resilience.
  • L3Harris looks promising with robust financials, improving margins, a healthy order book, and a diverse business portfolio.
  • Strategic moves, like the Aerojet Rocketdyne merger, position it as a top-tier defense investment with solid long-term potential.
  • Looking for a helping hand in the market? Members of iREIT® on Alpha get exclusive ideas and guidance to navigate any climate. Learn More »

Atomrakete mit Rauch und Explosion, die auf das Ziel am Sternenhimmel zufliegt. Waffen, Raketen, Raketen und Krieg. Luftverteidigung, Konzept. Gefahr

Ales_Utovko/iStock via Getty Images


When it comes to long-term investing, I've clear favorites. Although I try to keep a balanced portfolio, I am significantly overweight three industries: aerospace & defense, freight & logistics (railroads), and REITs (self-storage).

Test Drive iREIT© on Alpha For FREE (for 2 Weeks)

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial.

And this offer includes a 2-Week FREE TRIAL plus Brad Thomas' FREE book.

This article was written by

Leo Nelissen profile picture

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT on Alpha.

As a member of the iREIT on Alpha team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of LHX, LMT, NOC, RTX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (22)

Yesterday, 5:20 AM
LHX is finally getting its act together.
Leo Nelissen profile picture
@Doggywag I know what you mean, but LHX always had its act together. It was investors who didn't recognize it.
Stock Hunter ADK profile picture
Finally, above my DCA! THANK YOU!
Leo Nelissen profile picture
@Stock Hunter ADK I'm up as well! Now, I'm a bit annoyed that it is rising too fast. I want to buy more! lol
Stock Hunter ADK profile picture
@Leo Nelissen $200 Winner! I have $8K to spend. RTX and LHX now up above. DCA. Is BA worth my $$$$? NOC?
Leo Nelissen profile picture
@Stock Hunter ADK Unfortunately, I cannot answer this question, as it would be personal financial advice.
Gradually adding. Thanks.
Leo Nelissen profile picture
@AndreP Gradually adding is the way to go. Thanks for stopping by, Andre!
AlexChilton profile picture

As always, great piece, great sector.

Agree w/your list of 4, long all, reinvesting dividends. NOC gets my monthly purchases. RTX seems the most popular in the small social group of folks who do the monthly thing.

The Aerojet Rocketdyne purchase hit the balance sheet, suppressed the price. Good time to add. Thanks again.

Leo Nelissen profile picture
@AlexChilton I think that sums it up perfectly.

Thanks, Alex!
BM Cashflow Detective profile picture
Two points appear to have dealt a blow to L3Harris stock.

Ultimately, the share price had to pay tribute to last year's poor free cash flow development and, on the other hand, the company's solvency position deteriorated due to the takeover of Aerojet Rocketdyne.

Debt is not well covered by operating cash flow at 15.4%.

Market participants are becoming increasingly frightened by rising levels of debt.

Long $LHX

But that makes the stock appear advantageously cheap again.

The share is then good value based on its risk-adjusted 3y P/FCF/GY ratio of 1.29.

Opportunities come and go.

But on the stock markets they mostly come.
ndardick profile picture
I agree wholeheartedly with your Strong Buy Rating on LHX.
RTX and LHX are the 5th and 12th largest holdings in our family's main portfolio of 27 stocks.
The Chicago Bears snatched defeat from the jaws of victory yesterday as they broke a 48-0 NFL record by blowing a 12 point lead with less than 3 minutes left in the game. Why is this relevant to the stock market? Because it proves once again that probability is not certainty in football or in the stock market.
Leo Nelissen profile picture
@ndardick Great example.

I think the Broncos are another good example of value hiding below a poor initial performance.

The Bears may be the best team among the worst if that makes sense.
@ndardick The Bears simply accepted the baton of end-of-game blown leads that the Lion's were crowned with for the last 60 years. Not for this group of Lions. First 8-2 record to start the season since 1961. Bout time.
Stock Hunter ADK profile picture
@tjb314159 My DET DEF didn't help my team at all yesterday!
salazie profile picture
I greatly appreciate your insights - hope they bring down their debt
Leo Nelissen profile picture
@salazie They will. Debt is their main focus.

Thank you for stopping by!
salazie profile picture
@Leo Nelissen thanks too - I will observe the development
@Leo Nelissen thank you so much for sharing your "defense" portfolio. I would appreciate your other stocks in I am significantly overweight three industries: aerospace & defense)Ignore as you have provided these

freight & logistics (railroads), and REITs (self-storage). Thank you as usual for the articles
Leo Nelissen profile picture





Thank you for stopping by! I very much appreciate your kind words.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About LHX

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on LHX

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.