L3Harris (LHX) Poised to Benefit from Growing Investments

Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Fund”.  A copy of the letter can be downloaded here. The Fund seeks to invest in companies that possess franchise characteristics, with strong earnings trajectories, and are trading at a discount to the estimated private market value. US equities ended a record year with robust fourth-quarter gains. The Fund’s Investor Class, ARTMX, delivered -0.44%, the Advisor Class, APDMX, delivered -0.37%, and the Institutional Class, APHMX, delivered -0.35% in the fourth quarter compared to -3.70% for the Russell Midcap® Growth Index. Continued strength in information technology (IT) and health care contributed to the performance during the quarter. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks like L3Harris Technologies, Inc. (NYSE:LHX). Founded in 1895, L3Harris Technologies, Inc. (NYSE:LHX) is an aerospace and defense company. On February 20, 2026, L3Harris Technologies, Inc. (NYSE:LHX) stock closed at $356.14 per share. One-month return of L3Harris Technologies, Inc. (NYSE:LHX) was 0.55%, and its shares gained 78.20% over the past 52 weeks. L3Harris Technologies, Inc. (NYSE:LHX) has a market capitalization of $66.617 billion.

Artisan Mid Cap Fund stated the following regarding L3Harris Technologies, Inc. (NYSE:LHX) in its fourth quarter 2025 investor letter:

"During the quarter, we initiated new positions in L3Harris Technologies, Inc. (NYSE:LHX), Astera Labs and Carvana. L3Harris is a global aerospace and defense company. We believe it is well positioned to benefit from growing investment in next-generation missile defense and national security programs that require advanced propulsion, satellite systems and low-Earth orbit tracking capabilities. These efforts represent a large and expanding market opportunity that could support faster revenue growth over the coming years. In addition, as warfare increasingly involves low-cost drone threats, L3Harris’s strengths in sensing and counter-drone technologies position it well to address a critical and evolving defense need. We were able to initiate the new position during the quarter at an opportunistic entry point following recent share price weakness."

L3Harris Technologies, Inc. (NYSE:LHX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 48 hedge fund portfolios held L3Harris Technologies, Inc. (NYSE:LHX) at the end of the fourth quarter, compared to 59 in the previous quarter. 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 a list of best military technology stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.