On Monday, aerospace/defense giant L3Harris Technologies got an upgrade to its stock Relative Strength (RS) Rating, from 67 to 73. A separate rating that measures how big money investors are buying shows they are keenly interested in the stock. L3Harris stock climbed in Monday afternoon trading.
The upwardly revised RS Rating shows that L3 Harris stock is outperforming 73% of stocks, regardless of industry sector. It's a good but not yet great rating. Market research shows that the best stocks often have an RS Rating north of 80 as they begin their biggest price moves. See if L3Harris Technologies can continue to rebound and hit that benchmark.
As the U.S. continues to purchase military gear to ship to Ukraine, the ongoing war there could lift sales and profits for L3Harris. It supplies a wide variety of gear ranging from handheld radios to Sky Warden, a small, fixed wing strike plane for use against terrorists, up to Viper Shield, its all-digital, electronic warfare suite used on the F-16 fighter jet.
See How IBD Helps You Make More Money In Stocks
Other Ratings Even Higher
Among its other major ratings, L3Harris stock has a strong 83 EPS Rating, of a best-possible 99. It also has an 81 Composite Rating. This means its fundamental and technical measures rank in the top 19% of all stocks. Its relative strength line, in blue on all IBD charts, is at the highest point since late June. Additionally, it carries a strong B+ Accumulation/Distribution Rating. That means institutional buyers like insurance funds and mutual funds are fairly aggressively buying its shares, a bullish indicator.
L3Harris stock traded about 1.8% higher, around 228 Monday afternoon. It's risen rapidly, up from a 206.89 intraday low on Sept. 30. It hasn't formed a definite base yet though. See if L3Harris stock goes on to form a sound pattern that could launch a new move.
One yellow flag is its shrinking profit growth. L3Harris reported a 2% decline in earnings on a year-over-year basis, to a still decent $3.23 per share. Sales for that quarter dipped 11% to $4.14 billion. Look for the next report on or around Oct. 29.
Top-Ranked Peers In Aerospace/Defense Group
L3 Harris stock earns the No. 9 rank among its peers in the Aerospace/Defense industry group. Heico and Northrop Grumman are among the group's highest-rated stocks.
When you're researching the best stocks to buy and watch, One sharp tool to use is relative price strength.
IBD's unique Relative Strength Rating tracks technical performance by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
Please follow James DeTar on Twitter @JimDeTar
