L3Harris Technologies (LHX) Rallied Following the Demand Surge

Diamond Hill Capital, an investment management company, released its “Large Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their YTD rally in the third quarter of 2025, with the Russell 3000 Index gaining 8%, bringing the calendar-year returns to over 14%. The portfolio declined and underperformed the Russell 1000 Value Index in the quarter.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2025.

In its third-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted stocks such as L3Harris Technologies, Inc. (NYSE:LHX). L3Harris Technologies, Inc. (NYSE:LHX) is a global provider of mission-critical solutions for government and commercial customers. The one-month return of L3Harris Technologies, Inc. (NYSE:LHX) was -3.86%, and its shares gained 12.52% of their value over the last 52 weeks. On November 5, 2025, L3Harris Technologies, Inc. (NYSE:LHX) stock closed at $287.11 per share, with a market capitalization of $53.716 billion.

Diamond Hill Large Cap Fund stated the following regarding L3Harris Technologies, Inc. (NYSE:LHX) in its third quarter 2025 investor letter:

"Other top Q3 contributors included L3Harris Technologies, Inc. (NYSE:LHX), Caterpillar and Sysco Corporation. Leading defense electronics supplier L3Harris is capitalizing on strong demand from the US government and its allies in its key areas of expertise — including small satellites, secure communications and rocket motors — to drive higher earnings growth. Further, the company’s cost-cutting efforts are bearing fruit, as evidenced by improved execution at Aerojet Rocketdyne, which L3Harris acquired two years ago. We continue to believe the share price does not yet reflect the company’s opportunity amid the US Department of Defense’s preparations for potential threats."

L3Harris Technologies, Inc. (NYSE:LHX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 53 hedge fund portfolios held L3Harris Technologies, Inc. (NYSE:LHX) at the end of the second quarter, up from 42 in the previous quarter. In the third quarter of 2025, L3Harris Technologies, Inc. (NYSE:LHX) reported a revenue of $5.7 billion, reflecting a strong organic growth of 10%. While we acknowledge the potential of L3Harris Technologies, Inc. (NYSE:LHX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered L3Harris Technologies, Inc. (NYSE:LHX) and shared the list of top defense stocks from ChatGPT stock advice. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.