L3Harris Technologies, Inc. (LHX): A Bull Case Theory

We came across a bullish thesis on L3Harris Technologies, Inc. on Arya’s Substack by Arya. In this article, we will summarize the bulls’ thesis on LHX. L3Harris Technologies, Inc.'s share was trading at $356.02 as of January 29th. LHX’s trailing and forward P/E were 38.78 and 28.99 respectively according to Yahoo Finance.

L3Harris Technologies, Inc. provides mission-critical solutions for government and commercial customers worldwide. L3Harris Technologies operates as the invisible nervous system underpinning a Golden Dome–style missile defense architecture, occupying the critical layers of communications, sensors, electronic warfare, and resilient data links that allow the entire defensive stack to function under extreme stress.

While its hardware rarely features in headlines, L3Harris provides the secure, jam-resistant connectivity that enables space assets, ground-based radars, command centers, and interceptor batteries to operate as a unified system. The company supplies advanced radios, waveforms, sensor fusion platforms, and electronic pathways that guide interceptors on where to go, when to launch, and how to adjust dynamically as threats maneuver, placing L3Harris squarely at the center of the kill chain even though its role is largely unseen.

In modern warfare, information latency, signal degradation, and electromagnetic disruption often prove more decisive than shortcomings in kinetic capability, as even the most advanced interceptor is ineffective if targeting data arrives too late or is compromised by jamming, spoofing, or cyber interference. L3Harris directly addresses this vulnerability by delivering space-to-ground communications, advanced tactical radios, multi-domain sensor fusion nodes, and electronic countermeasures designed to operate in highly contested electromagnetic environments.

As missile defense architectures become more distributed, layered, and software-driven, the complexity of maintaining reliable, secure data flows increases materially, driving expanding demand for precisely the capabilities L3Harris specializes in. This positioning makes the company a foundational enabler of next-generation defense systems rather than a peripheral supplier, with its technologies becoming more essential as geopolitical threats evolve.

Given this setup, L3Harris stands to see sustained demand growth as defense priorities shift toward resilience, connectivity, and real-time decision-making, making it an increasingly attractive candidate for long-term investors seeking exposure to structurally rising defense technology spending.

Previously we covered a bullish thesis on Lockheed Martin Corporation by Steve Wagner in April 2025, which highlighted strong execution, expanding margins, a robust backlog, and steady defense compounding. The company’s stock price has appreciated approximately by 33.35% since our coverage. This is because the thesis played out. The thesis still stands as backlog visibility remains strong. Arya shares a similar thesis but emphasizes information-centric defense systems over kinetic platforms.

L3Harris Technologies, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held LHX at the end of the third quarter which was 53 in the previous quarter. While we acknowledge the potential of 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.

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Disclosure: None.