L3Harris Technologies recently experienced a share price increase of about 6% over the past month, coinciding with significant developments that may have impacted market sentiment. The company introduced the eSR-19, an advanced rocket motor designed for missile defense applications, which was successfully tested, potentially boosting investor confidence. Furthermore, a dividend increase approved by the Board might have appealed to income-focused investors. While market conditions were generally flat with broad economic uncertainties due to tariff news, L3Harris' advancements in defense technology and shareholder-friendly policies appear to have positively influenced its stock performance amidst these conditions.

We've identified 2 risks for L3Harris Technologies that you should be aware of.

This technology could replace computers: discover the 21 stocks are working to make quantum computing a reality.

Over five years, L3Harris Technologies achieved a total shareholder return of 32.41%. This performance can be attributed to several key developments. Strategic partnerships with companies such as Palantir and AI start-ups facilitated significant market differentiation and innovation. Furthermore, the company's involvement in major defense contracts like the Next-Gen Jammer and Glide Phase Interceptor secured a foundation for long-term growth in the aerospace and defense sectors. This period also saw an increase in international demand for L3Harris' defense products driven by geopolitical tensions, which bolstered revenue streams.

Financial initiatives played a crucial role in supporting shareholder returns. The LHX NeXt initiative successfully enhanced operational efficiencies, leading to improved cost savings and net margins. A substantial share buyback program, with over $5.6 billion worth repurchased since January 2021, resulted in elevated earnings per share. Compared to the past year, L3Harris underperformed the US Aerospace & Defense industry, which returned 18%, highlighting room for future improvement in performance relative to peers.

Navigate through the intricacies of L3Harris Technologies with our comprehensive balance sheet health report here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:LHX.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com