L3Harris Technologies, Inc. provides mission-critical solutions for government and commercial customers worldwide. The company's Integrated Mission Systems segment provides intelligence, surveillance, and reconnaissance (ISR) systems, passive sensing and targeting, electronic attack, autonomy, power and communications, and networks and sensors, as well as advanced combat systems for air, land, and sea sectors. Its Space and Airborne Systems segment offers space payloads, sensors, and full-mission solutions; classified intelligence and cyber; mission avionics; electronic warfare systems; and mission networks systems for air traffic management operations. The company's Communication Systems segment provides broadband communications; tactical radios, software, satellite terminals, and end-to-end battlefield systems for the U.S. Department of Defense, international, federal, and state agency customers; integrated vision solutions, including helmet-mounted integrated night vision goggles with leading-edge image intensifier tubes and weapon-mounted sights, aiming lasers, and range finders; and public safety radios, and system applications and equipment. Its Aerojet Rocketdyne segment provides propulsion technologies and armament systems for strategic defense, missile defense, hypersonic, and tactical systems; and space propulsion and power systems for national security, and space and exploration missions. The company was formerly known as Harris Corporation and changed its name to L3Harris Technologies, Inc. in June 2019. L3Harris Technologies, Inc. was founded in 1895 and is based in Melbourne, Florida.

L3Harris appears to be a high-quality defense business, but the current valuation already reflects its strengths to a noticeable extent. On valuation multiples, the picture is rather expensive: P/E, P/S, P/B, and especially P/FCF are above the industry median, with P/FCF and P/S looking the most stretched. At the same time, the trend in multiples over recent periods has generally improved, indicating that overheating has eased as earnings and revenue have grown, but the absolute level still does not look cheap. Profitability is mixed: net margin and operating margin remain at acceptable levels and are showing slight improvement, but ROE, ROA, and ROI are notably below industry benchmarks, which limits the case for a higher multiple. Liquidity is weaker than desired: quick ratio and current ratio are below the median, and cash on hand is relatively modest, so the margin of safety in working capital does not look strong. Debt burden, by contrast, is moderate and even better than the industry median on debt/equity, while debt declined over the year, supporting the investment profile. From the standpoint of earnings and operating performance, the company shows resilience: revenue, net income, operating income, and EBITDA are at high absolute levels and generally maintain a positive trajectory. However, gross margin is below the industry level and does not show clear expansion, so the potential for further margin acceleration appears limited. Dividend yield has fallen to zero in the latest observation, removing one of the valuation support factors for income investors. Equity and assets are stable, which points to financial strength, but does not create a strong catalyst for re-rating. Overall, the fundamentals support a quality story, but one that is no longer cheap and has limited upside from current levels. For an investor, this means the base case should be toned down slightly: the business is reliable, but the combination of expensive multiples, weak liquidity, and moderate efficiency does not justify an aggressive target valuation.

L3Harris Technologies, Inc.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, незначительно упал. Рынок не поддерживает быков.

Strong index, slightly down. The market does not support the bulls.

Слабый индекс, незначительно упал

A high-quality defense business with sustainable profitability and moderate debt, but expensive valuation multiples, weak liquidity, and limited re-rating potential.

Key Points
Space stocks rocketed in the run-up to SpaceX's June IPO -- then plummeted afterward.
Stock prices have stabilized and begun climbing higher this month.
Government contracts support the sector, but space stocks as a whole remain richly valued today.
Space stocks are in shambles.
"Led" (in a bad way) by Space Exploration Technologies (NASDAQ: SPCX), the space titan built by Elon Musk and IPOed on June 12, shares of space stocks of all stripes have taken a beating over the past couple of months.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Take Rocket Lab (NASDAQ: RKLB) for example. The space company, often described as a mini-SpaceX, surged from below $5 in May 2024 to more than $140 in May 2026 -- a thirtyfold rise in just two years. Then it plunged more than 50% after the SpaceX IPO.
Or consider AST SpaceMobile (NASDAQ: ASTS), the satellite communications pioneer that proved the concept of cell phone-to-cell phone communications via satellite, with no towers in between. That one rose nearly twelvefold over the same two-year period -- then gave back 20% in the month following SpaceX's titanic IPO.
More targeted space plays such as Redwire Corporation (NYSE: RDW), which builds space infrastructure, and Intuitive Machines (NASDAQ: LUNR), focused on delivering cargo to the moon, gained fourfold in two years and nearly eightfold, respectively, before falling each falling roughly 70% in a month.
Can they bounce back?
SpaceX leads; others follow
Even SpaceX hasn't gone unscathed. After a first few frenzied days of trading that lifted Elon Musk's space empire past $211 a share, sellers arrived in force at SpaceX, driving the shares down nearly into the double digits.
The good news is that SpaceX appears to have found its footing again, closing at $140 Friday and once again above its IPO price. The better news is that many other space stocks are recovering, at least somewhat, alongside the leader.
The best news of all is that, with the U.S. government continuing to pour money into space exploration, there's reason to believe the momentum is sustainable.
NITE-STAR gazing
Case in point: Late last month, the U.S. Space Force announced a $981 million award to be shared among more than a dozen separate space stocks working on the "National Space Test and Training Complex Innovative Technology and Engineering Space Test and Range Capability Development" -- dubbed "NITE-STAR."
(Someone clearly worked overtime trying to make those words fit that acronym.)
Space Force named the following 15 space companies -- 13 of which are publicly traded -- as winners of NITE-STAR, clearing them to bid on future task orders under the umbrella contract, which will span 10 years:
It's not entirely clear what NITE-STAR will entail. The Space Force itself might not be 100% certain, describing the contract's goal vaguely as "advancement of the sophisticated systems and technologies required to keep [Space Force servicemen known as] Guardians ahead of the complexities of a contested space domain."
More importantly for investors, it's less than 100% certain anyone on the above list will book significant, needle-moving wins -- even on this nearly $1 billion contract.
What it means for space investors
Consider that $981 million, spread over 10 years, works out to just $98.1 million per year. And if contracts are evenly distributed, each of the 15 companies might, on average, expect to book as little as $6.5 million per year under the contract.
It goes without saying that $6.5 million won't move the needle for giant space companies such as Boeing, Lockheed, Northrop, or L3Harris. Smaller space-fry such as Firefly, Redwire, or York Space might notice the revenue influx more. But even at York, $6.5 million extra per year will only add about 1.5% to the company's $405 million-a-year revenue stream.
In short, big as this contract appears on the surface, it's not -- in and of itself -- going to be enough to turn things around and start a new bull market in space stocks. Many more contracts, and many much larger contracts, will be needed for that.
Meanwhile, a survey of 15 of the biggest space stocks that I follow shows an average price-to-sales ratio of 65.4. (Even throwing out triple-digit P/S outliers such as AST and Virgin Galactic (NYSE: SPCE) only brings the average P/S down to 19.8.) Valuations remain extreme in this sector.
Investors should be wary. Even after some pretty historic declines, space stocks as a whole aren't yet cheap enough to guarantee a bounce-back.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!*
Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 18, 2026.
Rich Smith has positions in Intuitive Machines and Rocket Lab. The Motley Fool has positions in and recommends AST SpaceMobile, Amentum, Boeing, Firefly Aerospace, Intuitive Machines, L3Harris Technologies, Rocket Lab, and York Space Systems. The Motley Fool recommends BAE Systems and Lockheed Martin. The Motley Fool has a disclosure policy.

Can Space Stocks Bounce Back? This $1 Billion Air Force Contract Might Help.

The S&P 500 Index ($SPX) (SPY) closed down by -0.52% on Monday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.51%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -0.17%. E-mini S&P futures (ESU26) fell -0.48%, and September E-mini Nasdaq futures (NQU26) fell -0.17%.
Stock indices settled lower on Monday, with the Dow Jones Industrials falling to a 2-week low. The prospects for the US-Iran war to continue boosted crude oil prices to a 3-week high and weighed on market sentiment on Monday after President Trump said he’s not interested in extending the expiring 60-day truce with Iran. The jump in crude oil prices also boosted inflation expectations and bond yields, bearish factors for stocks. The 10-year T-note yield rose +3 bp to 4.72%.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks initially found support on Monday amid strength in technology stocks after stellar revenue growth at Anthropic PBC bolstered the view that spending on artificial intelligence will be sustained. Anthropic told prospective investors that its Q2 revenue jumped by at least 14-fold from the same period last year, according to a report today by Bloomberg. However, the weakness in software stocks is weighing on the Dow Jones Industrial Average.
Stocks also found support on some better-than-expected US economic news. The Aug Empire manufacturing survey general business conditions index unexpectedly rose +5.0 to a 4.5-year high of 20.6, stronger than expectations of a decline to 10.0. Also, the Aug NAHB housing market index unexpectedly rose +1 to 35, stronger than expectations of a decline to 33.
Signs of weakness in China’s economy undercut global growth prospects and were negative for stocks. China's July industrial production rose +4.5% y/y, weaker than expectations of +5.0% y/y. Also, China's July retail sales rose +0.6% y/y, weaker than expectations of +1.5% y/y. In addition, the China July survey jobless rate rose +0.2 to 5.2%, showing a weaker labor market than expectations of 5.1%. Finally, China's July new home prices fell -0.18% m/m, the thirty-eighth consecutive month home prices have declined.
Sep WTI crude oil prices (CLU26) rallied more than +2% on Monday to a 3-week high amid fresh Israeli attacks on Iran-backed Hezbollah in Lebanon, dampening the prospects of ending hostilities in the Middle East and a quick reopening of the Strait of Hormuz. Also, Israel has struck Iran-backed Hamas in Gaza, the Yemen- based Houthis have attacked ships in the Red Sea, and several vessels have been hit by projectiles in the Strait of Hormuz. President Trump said today that the US naval blockade on Iranian ports is putting pressure on the country, and he has no timeline for resolving the US-Iran conflict.
Crude prices raced to their high on Monday after US Energy Secretary Chris Wright said that the US is playing the long game with Iran, implying the US has no plans for de-escalation of the conflict, potentially limiting crude supplied from the Middle East.
Iran and Oman appear to be edging closer to a deal on how the Strait of Hormuz should be managed, agreeing on routes through the waterway. Iranian Foreign Ministry spokesman Baghaei said on Monday that finalizing a "shipping map" is part of a broader accord to govern traffic through the strait and constitutes an independent arrangement between the two states that will uphold their sovereignty and ensure the safe transit of vessels.
Treasury Secretary Bessent said last week that the administration will soon announce unprecedented economic measures against Iran that “have never been seen in the history of economic isolation of a country.” The economic measures would add to the current US naval blockade of Iranian ports.
There have been no signs of progress toward a US-Iran agreement to fully open the Strait of Hormuz. An Iranian military spokesperson said last Thursday that no ship can safely pass the Strait of Hormuz without Iran’s authorization and supervision and that President Trump’s claims of control over the Strait are “nothing more than lies.” The Iranian statement was in response to President Trump's comment last Tuesday that the US has “total control over the Hormuz Strait” and that “we own it.”
The outlook for strong Q2 earnings is a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 85% of the 456 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 36% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets settled mixed on Monday. The Euro Stoxx 50 closed down -0.14%. China's Shanghai Composite climbed to a 5-week high and closed up +1.41%. Japan's Nikkei-225 Stock Average closed up +0.74%.
Interest Rates
September 10-year T-notes (ZNU6) closed down -4 ticks on Monday. The 10-year T-note yield rose up +3.2 bp to 4.724%. T-notes came under pressure on Monday after WTI crude oil prices rose more than +2% to a 3-week high, which boosted inflation expectations. The 10-year breakeven inflation rate rose to a 3-week high of 2.296% on Monday. Also, Monday’s stronger-than-expected US economic news on the Aug Empire manufacturing index and Aug NAHB housing market index weighed on T-note prices.
European government bond yields moved higher on Monday. The 10-year German bund yield rose to a 15-year high of 3.223% and finished up +1.7 bp to 3.221%. The 10-year UK gilt yield climbed to a 3-week high of 5.063% and finished up +2.3 bp to 5.060%.
Markets are discounting a 94% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Software stocks retreated on Monday, pressuring the overall market. Thomson Reuters (TRI) closed down more than -4% to lead losers in the Nasdaq 100, and ServiceNow (NOW) closed down more than -4%. Also, Adobe Systems (ADBE), Datadog (DDOG), Workday (WDAY), and Microsoft (MSFT) closed down more than -3%. In addition, Atlassian Corp (TEAM), Autodesk (ADSK), Intuit (INTU), Oracle (ORCL), and Salesforce (CRM) closed down more than -2%.
Airlines and cruise line operators fell on Monday after WTI crude oil rose more than +2% to a 3-week high. Alaska Air Group (ALK) and Norwegian Cruise Line Holdings (NCLH) closed down more than -4%, and American Airlines Group (AAL), United Airlines Holdings (UAL), and Southwest Airlines (LUV) closed down more than -2%. Also, Delta Air Lines (DAL), Carnival (CCL), and Royal Caribbean Cruises (RCL) closed down more than -1%.
Chipmakers and AI-infrastructure stocks moved higher on Monday, a supportive factor for the broader market. The iShares Semiconductor ETF (SOXX) closed up more than +1%. Sandisk (SNDK) closed up more than +8% to lead gainers in the S&P 500 and Nasdaq 100, and Western Digital (WDC), Applied Materials (AMAT), and Marvell Technology (MRVL) closed up more than +5%. Also, Micron Technology (MU) closed up more than +4%, and Lam Research (LRCX) closed up more than +3%. In addition, Seagate Technology Holdings Plc (STX) and ASML Holding NV (ASML) closed up more than +2%, and Microchip Technology (MCHP), KLA Corp (KLAC), and Texas Instruments (TXN) closed up more than +1%.
Energy producers and service providers rose on Monday after WTI crude rallied more than +2% to a 3-week high. Devon Energy (DVN) closed up more than +3%, and APA Corp (APA) and Phillips 66 (PSX) closed up more than +2%. Also, Chevron (CVX), Diamondback Energy (FANG), Occidental Petroleum (OXY), and Valero Energy (VLO) closed up more than +1%.
EyePoint (EYPT) closed down more than -66% after saying its experimental treatment for an eye disease failed to meet its primary goal in a late-stage trial.
Constellation Brands (STZ) closed down more than -6% after Berkshire Hathaway announced that it liquidated its holdings in the company.
L3Haris Technologies (LHX) closed down more than -4% after saying that Christopher Kubasik stepped down as CEO and chairman of the board, effective immediately.
SentinelOne (S) and Netskope (NTSK) closed down more than -3% after Deutsche Bank downgraded the stocks from buy to hold.
Onto Innovation (ONTO) closed up more than +5% after Goldman Sachs initiated a buy rating on the stock and a price target of $400.
Pulse Biosciences (PLSE) closed up more than +5% after Needham & Co. initiated coverage on the stock with a buy recommendation and a $58 price target.
Earnings Reports (8/18/2026)
Amer Sports Inc (AS), Home Depot Inc/The (HD), Jack Henry & Associates Inc (JKHY), Keysight Technologies Inc (KEYS), Toll Brothers Inc (TOL).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Settle Lower on Rising Crude Prices and Higher Bond Yields

Key Points
The company has made several changes to its leadership team.
Management maintains its 2026 financial guidance.
Starting the week on an inauspicious note, L3Harris Technologies (NYSE: LHX) stock is shining brightly on bears' radars today. With the company announcing an unexpected shake-up in the management team, investors have found sufficient motivation to exit their positions in the defense contractor.
As of 2:43 p.m. ET, shares of L3Harris are down 4%.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Investors are unsettled as new leadership takes shape
L3Harris announced this morning that its board of directors has appointed Sam Mehta as president and chief executive officer and as a member of the board. Moreover, Lewis Hay III, the company's lead independent director, will step in as the board's new independent chairman. Before these new appointments, Christopher Kubasik had served as chairman and CEO as well as a board member.
According to the press release that L3Harris issued regarding the C-suite changes, the company "became aware of certain conduct by Kubasik that was not consistent with the values of the Company as outlined in its Code of Conduct." While L3Harris didn't specify the exact nature, the company commented that the conduct was unrelated to "financial reporting, controls, customer relationships or operational performance."
In addition, L3Harris reaffirmed several aspects of its 2026 forecast, including revenue of $23.2 billion to $23.7 billion and free cash flow of $3 billion.
What's an investor to do now?
Unsurprisingly, an abrupt change in the C-suite is motivating investors to exit their positions in L3Harris Technologies stock today. The market hates uncertainty, and it seems that, despite the company's insistence that Kubasik's conduct didn't involve malfeasance in the company's financial reporting -- or other important aspects of the company's business -- it's enough to raise doubts in investors' minds.
While it may be hasty for current shareholders to click the sell button, it would be wise for them to closely monitor upcoming financial reports to ensure that the company is on track to achieve 2026 guidance. Fortunately for those who are still unnerved by the recent developments, there are plenty of other defense stocks to consider for industry exposure.
Should you buy stock in L3Harris Technologies right now?
Before you buy stock in L3Harris Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and L3Harris Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!*
Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 17, 2026.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends L3Harris Technologies. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Why L3Harris Stock Is Falling Today

The S&P 500 Index ($SPX) (SPY) is down by -0.15% today, the Dow Jones Industrial Average ($DOWI) (DIA) is down by -0.44%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.28%. E-mini S&P futures (ESU26) are down -0.17%, and September E-mini Nasdaq futures (NQU26) are up +0.22%.
Stock indices are mixed today, with the Dow Jones Industrials falling to a 2-week low. The strength in technology stocks is lifting the broader market today after stellar revenue growth at Anthropic PBC bolstered the view that spending on artificial intelligence will be sustained. Anthropic told prospective investors that its Q2 revenue jumped by at least 14-fold from the same period last year, according to a report today by Bloomberg. However, the weakness in software stocks is weighing on the Dow Jones Industrial Average.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks also found support on some better-than-expected US economic news. The Aug Empire manufacturing survey general business conditions index unexpectedly rose +5.0 to a 4.5-year high of 20.6, stronger than expectations of a decline to 10.0. Also, the Aug NAHB housing market index unexpectedly rose +1 to 35, stronger than expectations of a decline to 33.
Signs of weakness in China’s economy undercut global growth prospects and were negative for stocks. China's July industrial production rose +4.5% y/y, weaker than expectations of +5.0% y/y. Also, China's July retail sales rose +0.6% y/y, weaker than expectations of +1.5% y/y. In addition, the China July survey jobless rate rose +0.2 to 5.2%, showing a weaker labor market than expectations of 5.1%. Finally, China's July new home prices fell -0.18% m/m, the thirty-eighth consecutive month home prices have declined.
Sep WTI crude oil prices (CLU26) are moving higher today amid fresh Israeli attacks on Iran-backed Hezbollah in Lebanon, dampening the prospects of ending hostilities in the Middle East and a quick reopening of the Strait of Hormuz. Also, Israel has struck Iran-backed Hamas in Gaza, the Yemen- based Houthis have attacked ships in the Red Sea, and several vessels have been hit by projectiles in the Strait of Hormuz. President Trump said today that the US naval blockade on Iranian ports is putting pressure on the country, and he has no timeline for resolving the US-Iran conflict.
Crude oil prices fell from their best level today on signs that Iran and Oman appear to be edging closer to a deal on how the Strait of Hormuz should be managed, agreeing on routes through the waterway. Iranian Foreign Ministry spokesman Baghaei said finalizing a "shipping map" is part of a broader accord to govern traffic through the strait and constitutes an independent arrangement between the two states that will uphold their sovereignty and ensure the safe transit of vessels.
Treasury Secretary Bessent said last week that the administration will soon announce unprecedented economic measures against Iran that “have never been seen in the history of economic isolation of a country.” The economic measures would add to the current US naval blockade of Iranian ports.
There have been no signs of progress toward a US-Iran agreement to fully open the Strait of Hormuz. An Iranian military spokesperson said last Thursday that no ship can safely pass the Strait of Hormuz without Iran’s authorization and supervision and that President Trump’s claims of control over the Strait are “nothing more than lies.” The Iranian statement was in response to President Trump's comment last Tuesday that the US has “total control over the Hormuz Strait” and that “we own it.”
The outlook for strong Q2 earnings is a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 85% of the 456 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 31% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are higher today. The Euro Stoxx 50 is up +0.03%. China's Shanghai Composite climbed to a 5-week high and closed up +1.41%. Japan's Nikkei-225 Stock Average closed up +0.74%.
Interest Rates
September 10-year T-notes (ZNU6) today are down -1.5 ticks. The 10-year T-note yield is up +0.8 bp to 4.700%. Higher WTI crude oil prices today are boosting inflation expectations and weighing on T-notes. The 10-year breakeven inflation rate rose to a 3-week high of 2.296% today. Also, today’s stronger-than-expected US economic news on the Aug Empire manufacturing index and Aug NAHB housing market index weighed on T-note prices.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 3-week high of 3.214% and is up +0.3 bp to 3.207%. The 10-year UK gilt yield is up +0.1 bp to 5.038%.
Markets are discounting a 92% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks are edging higher today, a supportive factor for the broader market. The iShares Semiconductor ETF (SOXX) is up more than +1%. Sandisk (SNDK) is up more than +10% to lead gainers in the S&P 500 and Nasdaq 100, and Western Digital (WDC) and Marvell Technology (MRVL) are up more than +7%. Also, Micron Technology (MU) and Applied Materials (AMAT) are up more than +5%, and Seagate Technology Holdings Plc (STX) is up more than +3%. In addition, Microchip Technology (MCHP), Lam Research (LRCX), Intel (INTC), and Texas Instruments (TXN) are up more than +2%, and Analog Devices (ADI), ASML Holding NV (ASML), and Broadcom (AVGO) are up more than +1%.
Software stocks are under pressure today, limiting gains in the overall market. Datadog (DDOG) is down more than -3% to lead losers in the Nasdaq 100, and Adobe Systems (ADBE) and ServiceNow (NOW) are down more than -3%. Also, Salesforce (CRM), Workday (WDAY), Atlassian Corp (TEAM), Autodesk (ADSK), Intuit (INTU), Oracle (ORCL), and Microsoft (MSFT) are down more than -2%.
EyePoint (EYPT) is down more than -71% after saying its experimental treatment for an eye disease failed to meet its primary goal in a late-stage trial.
Constellation Brands (STZ) is down more than -5% to lead losers in the S&P 500 after Berkshire Hathaway announced that it liquidated its holdings in the company.
SentinelOne (S) and Netskope (NTSK) are down more than 4% after Deutsche Bank downgraded the stocks from buy to hold.
L3Haris Technologies (LHX) is down more than -3% after saying that Christopher Kubasik stepped down as CEO and chairman of the board, effective immediately.
Onto Innovation (ONTO) is up more than +4% after Goldman Sachs initiated a buy rating on the stock and a price target of $400.
Pulse Biosciences (PLSE) is up more than +3% after Needham & Co. initiated coverage on the stock with a buy recommendation and a $58 price target.
Astera Labs (ALAB) is up more than +2% after Northland Securities upgraded the stock to outperform from market perform with a price target of $350.
Earnings Reports (8/17/2026)
Fabrinet (FN), XP Inc (XP).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stock Indices Waver on Strength in Chipmakers vs Weakness in Software Companies

The S&P 500 Index ($SPX) (SPY) is up by +0.17% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.20%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.13%. E-mini S&P futures (ESU26) are up +0.05%, and September E-mini Nasdaq futures (NQU26) are up +0.34%.
Stock indices are mixed today, with the Dow Jones Industrials falling to a 2-week low. The strength in technology stocks is lifting the broader market today after stellar revenue growth at Anthropic PBC bolstered the view that spending on artificial intelligence will be sustained. Anthropic told prospective investors that its Q2 revenue jumped by at least 14-fold from the same period last year, according to a report today by Bloomberg. However, the weakness in software stocks is weighing on the Dow Jones Industrial Average.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Stocks also found support on some better-than-expected US economic news. The Aug Empire manufacturing survey general business conditions index unexpectedly rose +5.0 to a 4.5-year high of 20.6, stronger than expectations of a decline to 10.0.
Signs of weakness in China’s economy undercut global growth prospects and were negative for stocks. China's July industrial production rose +4.5% y/y, weaker than expectations of +5.0% y/y. Also, China's July retail sales rose +0.6% y/y, weaker than expectations of +1.5% y/y. In addition, the China July survey jobless rate rose +0.2 to 5.2%, showing a weaker labor market than expectations of 5.1%. Finally, China's July new home prices fell -0.18% m/m, the thirty-eighth consecutive month home prices have declined.
Sep WTI crude oil prices (CLU26) are moving higher today amid fresh Israeli attacks on Iran-backed Hezbollah in Lebanon, dampening the prospects of ending hostilities in the Middle East and a quick reopening of the Strait of Hormuz. Also, Israel has struck Iran-backed Hamas in Gaza, the Yemen- based Houthis have attacked ships in the Red Sea, and several vessels have been hit by projectiles in the Strait of Hormuz.
Crude oil prices fell from their best level today on signs that Iran and Oman appear to be edging closer to a deal on how the Strait of Hormuz should be managed, agreeing on routes through the waterway. Iranian Foreign Ministry spokesman Baghaei said finalizing a "shipping map" is part of a broader accord to govern traffic through the strait and constitutes an independent arrangement between the two states that will uphold their sovereignty and ensure the safe transit of vessels.
Treasury Secretary Bessent said last week that the administration will soon announce unprecedented economic measures against Iran that “have never been seen in the history of economic isolation of a country.” The economic measures would add to the current US naval blockade of Iranian ports.
There have been no signs of progress toward a US-Iran agreement to fully open the Strait of Hormuz. An Iranian military spokesperson said last Thursday that no ship can safely pass the Strait of Hormuz without Iran’s authorization and supervision and that President Trump’s claims of control over the Strait are “nothing more than lies.” The Iranian statement was in response to President Trump's comment last Tuesday that the US has “total control over the Hormuz Strait” and that “we own it.”
The outlook for strong Q2 earnings is a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 85% of the 456 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 32% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are mixed today. The Euro Stoxx 50 is down -0.05%. China's Shanghai Composite climbed to a 5-week high and closed up +1.41%. Japan's Nikkei-225 Stock Average closed up +0.74%.
Interest Rates
September 10-year T-notes (ZNU6) today are down -3 ticks. The 10-year T-note yield is up +1.2 bp to 4.704%. Higher WTI crude oil prices today are boosting inflation expectations and weighing on T-notes. The 10-year breakeven inflation rate rose to a 3-week high of 2.296% today. Also, today’s news that the Aug Empire manufacturing index unexpectedly rose to a 4.5-year high weighed on T-note prices.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 3-week high of 3.214% and is up +0.7 bp to 3.211%. The 10-year UK gilt yield is up +0.2 bp to 5.039%.
Markets are discounting a 92% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks are edging higher today, a supportive factor for the broader market. The iShares Semiconductor ETF (SOXX) is up more than +1%. Marvell Technology (MRVL) is up more than +5% to lead gainers in the S&P 500, and Sandisk (SNDK) is up more than +5%. Also, Western Digital (WDC) and Micron Technology (MU) are up more than +4%, and Applied Materials (AMAT) is up more than +3%. In addition, Seagate Technology Holdings Plc (STX) is up more than +2%, and KLA Corp (KLAC), ASML Holding NV (ASML), and Texas Instruments (TXN) are up more than +1%.
Software stocks are under pressure today, limiting gains in the overall market. Datadog (DDOG) is down more than -3% to lead losers in the Nasdaq 100, and Salesforce (CRM) is down more than -2% to lead losers in the Dow Jones Industrials. Also, Adobe Systems (ADBE), ServiceNow (NOW), Workday (WDAY), Atlassian Corp (TEAM), Autodesk (ADSK), Intuit (INTU), and Oracle (ORCL) are down more than -2%. In addition, Microsoft (MSFT) and Palantir Technologies (PLTR) are down more than -1%.
Astera Labs (ALAB) is up more than +6% to lead gainers in the Nasdaq 100 after Northland Securities upgraded the stock to outperform from market perform with a price target of $350.
Onto Innovation (ONTO) is up more than +4% after Goldman Sachs initiated a buy rating on the stock and a price target of $400.
Target Hospitality (TH) is up more than +2% after Morgan Stanley initiated coverage on the stock with an overweight recommendation and a $22 price target.
EyePoint (EYPT) is down more than -71% after saying its experimental treatment for an eye disease failed to meet its primary goal in a late-stage trial.
Constellation Brands (STZ) is down more than -4% to lead losers in the S&P 500 after Berkshire Hathaway announced that it liquidated its holdings in the company.
SentinelOne (S) and Netskope (NTSK) are down more than 4% after Deutsche Bank downgraded the stocks from buy to hold.
L3Haris Technologies (LHX) is down more than -3% after saying that Christopher Kubasik stepped down as CEO and chairman of the board, effective immediately.
Earnings Reports (8/17/2026)
Fabrinet (FN), XP Inc (XP).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Stocks Mixed on Strength in Chipmakers vs Weakness in Software Companies

L3Harris Technologies, Inc. LHX is expanding its maritime capabilities with a new production facility in Providence, RI, supporting growing demand for undersea training and readiness. On Aug. 12, 2026, the company announced the opening of a 50,000-square-foot facility at ProvPort following a $6 million investment. The site will design, produce and deliver advanced undersea training systems for the U.S. Navy and allied forces.
The new facility is expected to strengthen L3Harris' ability to integrate and test undersea training ranges for U.S. and partner-nation fleets. Its location also provides access to maritime infrastructure and a skilled workforce, supporting the company's ability to execute specialized naval programs. The investment expands L3Harris' physical presence in Rhode Island, where it has operated since 1991 through its Ashaway facility, which provides undersea sensor systems and military sonar for the U.S. Navy.
The ProvPort expansion also broadens L3Harris' role across the undersea defense ecosystem. The facility will support local partnerships, port operations and specialized maritime services while creating additional capacity for undersea training activities. This complements the company's existing capabilities in undersea warfare, sensors and maritime solutions.
Growing emphasis on naval readiness and undersea capabilities could support demand for specialized training systems and related technologies. L3Harris' investment in dedicated production infrastructure positions the company to support U.S. and allied fleets while strengthening its presence in the maritime defense market.
Companies Expanding Undersea Defense Capabilities
The growing focus on naval readiness is encouraging defense companies to expand technologies supporting undersea operations. Companies like RTX Corporation RTX and Northrop Grumman Corporation NOC are also developing capabilities for U.S. and allied naval missions.
RTX provides sonar, sensing and other maritime technologies that support naval platforms and undersea operations.
Northrop Grumman develops undersea systems and technologies that facilitate naval missions, including capabilities for submarine and undersea warfare applications.
Earnings Estimates for LHX
The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 9.04% and 15.81%, respectively.
LHX Stock Is Trading at a Discount
LHX is trading at a discount relative to the industry, with a forward 12-month price-to-sales of 2.21X compared with the industry average of 2.69X.
LHX Stock Price Performance
Over the past year, LHX shares have rallied 7.3% compared with the industry’s 6.6% growth.
Image Source: Zacks Investment Research
LHX’s Zacks Rank
LHX currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Can L3Harris' New Rhode Island Facility Strengthen Undersea Growth?

(RTTNews) - Monday, L3Harris Technologies, Inc. (LHX) announced that Christopher Kubasik has stepped down as Chairman and Chief Executive Officer and as a member of the Board, effective immediately.
The decision comes as the company became aware of certain conduct by Kubasik that was not consistent with the values as outlined in its Code of Conduct.
Following this, the Board has appointed Sam Mehta as President and CEO and a member of the Board, effective immediately. Mehta joined L3Harris in 2023 and is a member of the L3Harris executive team.
Prior to joining L3Harris, he was President, Advanced Structures for Collins Aerospace, a business unit of RTX Corporation.
In addition to Mehta, Lewis Hay III, the company's Lead Independent Director, was named Independent Chairman of the Board.
Also, Lauren Barnes, President of Spectrum Superiority, was appointed President of Space & Mission Systems and Christopher Aebli, President of Mission Critical Communications, was appointed President of Communications & Spectrum Dominance.
Concurrently, L3Harris reaffirmed its 2026 consolidated revenue, organic growth, segment operating margin, GAAP earnings per share and free cash flow.
L3Harris also assured that it remains committed to its previously announced $3 billion capital buildout to increase solid rocket motor production and strengthen its supply chain to address the nation's urgent and critical needs.
In pre-market hours, LHX is falling 3.16 percent, to $282.64 on the New York Stock Exchange.

L3Harris Technologies Appoints Sam Mehta As CEO, Replacing Christopher Kubasik; Stock Down

At Holdings Channel, we have reviewed the latest batch of the 55 most recent 13F filings for the 06/30/2026 reporting period, and noticed that L3Harris Technologies Inc (Symbol: LHX) was held by 13 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in LHX positions, for this latest batch of 13F filers:
In terms of shares owned, we count 5 of the above funds having increased existing LHX positions from 03/31/2026 to 06/30/2026, with 3 having decreased their positions and 1 new position. Worth noting is that Castle Hook Partners LP, and Westchester Capital Management LLC, included in this recent batch of 13F filers, exited LHX common stock as of 06/30/2026.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the LHX share count in the aggregate among all of the funds which held LHX at the 06/30/2026 reporting period (out of the 6,891 we looked at in total). We then compared that number to the sum total of LHX shares those same funds held back at the 03/31/2026 period, to see how the aggregate share count held by hedge funds has moved for LHX. We found that between these two periods, funds reduced their holdings by 54,709,978 shares in the aggregate, from 123,915,959 down to 69,205,981 for a share count decline of approximately -44.15%. The overall top three funds holding LHX on 06/30/2026 were:
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like L3Harris Technologies Inc (Symbol: LHX).
Further LHX Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

See Which Recent 13F Filers Hold LHX But Castle Hook Partners and Westchester Capital Management Exited

Key Points
Modern wars are exposing old supply shortages, and defense suppliers stand to benefit.
AeroVironment and L3Harris are positioned where demand is growing fastest: drones, missiles, and battlefield networks.
Strong backlogs create opportunity, but execution, politics, and defense budgets remain key risks.
When shipping lanes around Iran become combat zones, the world is reminded that modern militaries still run on some very old fundamentals: munitions, sensors, and logistics. Recent attacks and closures in the Strait of Hormuz and Red Sea have underscored how thin global defense supply has become, especially for drones, precision weapons, and artillery shells.
That stress does not just move oil prices. It can reshape the outlook for a handful of defense contractors that have been quietly scaling up for exactly this kind of environment.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
1. AeroVironment: Filling the small‑drone gap
If you watch footage from contested regions, you see many small, lethal drones. AeroVironment (NASDAQ: AVAV) is one of the companies behind that reality. In February 2026, the company announced a $186 million U.S. Army order for its Switchblade 600 Block 2 and Switchblade 300 Block 20 loitering munitions, under a five‑year contract with a $990 million ceiling, first awarded in 2024. These systems are designed to let small units destroy armored vehicles and key targets without calling in larger missiles or aircraft.
For investors, that tells you two things. First, the U.S. is not treating loitering munitions as a niche experiment. The Army is rolling them into its core toolkit with multiyear funding and export support to allies. Second, AeroVironment is now on the hook to deliver at scale, which can deepen customer relationships but also test its own supply chain and manufacturing. The upside is clear in an era when U.S. Central Command talks about nightly drone and missile strikes around Hormuz and the Red Sea. The risk is that any production stumble or integration delay could sour confidence at a time when demand is hot, and alternatives are emerging.
2. L3Harris: Sensors, communications, and missile capacity
Where AeroVironment focuses on the trigger, L3Harris Technologies (NYSE: LHX) helps militaries see, talk, and coordinate. Its latest results show a company already busy trying to close some of the supply gaps that current tensions have exposed. In the first quarter of 2026, L3Harris reported orders of $7.8 billion and a book‑to‑bill ratio of 1.4, pushing backlog to a record $40.7 billion. By the second quarter, backlog had climbed again to $42 billion on $7.3 billion of new orders and an 8% revenue increase to $5.9 billion.
Behind those numbers is a lot of hardware. In its annual report, L3Harris outlined roughly $2 billion in commitments to expand missile production capacity, including facilities, equipment, and supply chain upgrades. That is not just about more weapons. It is about hardening the industrial base so that when corners of the world flare, commanders are not told the shelves are empty. I see that as a quiet but important response to what we are watching in the Gulf: sustained operations draining inventories faster than factories can refill them.
The downside here is similar to other defense primes. Large backlogs can tempt management into overpromising, and missile programs are politically sensitive. Budget cycles, elections, and shifting threat perceptions can all slow or reroute planned spending even when the underlying need looks obvious.
What this means for investors
To me, these two companies sit at key choke points in the defense supply chain that current tensions with Iran have brought into relief: AeroVironment in small precision-strike systems and L3Harris in communications and missile capabilities. Neither of them is a pure bet on a single conflict. Their contracts and backlogs stretch across multiple theaters and customers.
That is the good news. The harder part is sizing any investment. These stocks can benefit from heightened tensions, but they also ride political cycles, budget arguments, and long procurement timelines. If you are looking to express a view that defense supply gaps exposed in Hormuz and the Red Sea will finally push governments to pay up for munitions, sensors, and shells, these names belong on the watch list. Just make sure they sit within a broader portfolio, not as your only bet on a world that feels less stable by the week.
Should you buy stock in AeroVironment right now?
Before you buy stock in AeroVironment, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AeroVironment wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 10, 2026.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AeroVironment and L3Harris Technologies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Iran Tensions Highlight Defense Supply Gaps Poised to Lift 2 Stocks

Motorola Solutions, Inc. MSI combines double-digit revenue growth, record backlog and another increase in its 2026 outlook with a valuation above its five-year median. The stock’s earnings momentum supports the growth case, but the premium multiple leaves less room for execution missteps.
Investors weighing whether to buy, hold or wait must balance improving operating results against leverage, acquisition-related costs and supply-chain pressures. The Zacks Rank remains favorable, while the Zacks Style Scores point to weaker value and momentum characteristics.
MSI’s Earnings Growth Strengthens the Case
Motorola reported second-quarter sales of $3.13 billion, up 13% year over year, while non-GAAP earnings increased 24% to $4.41 per share. Products and Systems Integration sales rose 15%, and Software and Services sales increased 10%. Growth extended across Mission Critical Networks, Video and Command Center.
Image Source: Zacks Investment Research
Management raised its full-year 2026 outlook again, now expecting revenues of approximately $12.98 billion and non-GAAP earnings of $17.62-$17.72 per share. The prior outlook called for $12.8 billion in revenues and $16.87-$16.99 in earnings per share. The company expects third-quarter revenue to increase approximately 8% year over year.
Motorola’s Backlog Supports Future Growth
Record second-quarter orders lifted backlog to $15.6 billion, up 11% from a year ago. Software and Services backlog increased $1.2 billion, while Products and Systems Integration backlog rose $329 million. The backlog provides visibility into future sales, although the pace of conversion will depend on customer deployment timing.
Motorola also generated $469 million in operating cash flow and $414 million in free cash flow during the quarter. Higher earnings drove the improvement, partly offset by increased investment in inventory.
Image Source: Zacks Investment Research
MSI Trades at a Premium to the S&P 500
Motorola trades at 23.74X trailing 12-month EV/EBITDA, compared with 17.82X for the S&P 500. The stock’s current multiple is also above its five-year median of 20.89X, although it remains below the 26.5X five-year high. The valuation indicates that continued earnings and cash-flow execution are important to supporting the current share price.
For context, Axon Enterprise, Inc. AXON and L3Harris Technologies, Inc. LHX are two other public-safety and communications companies investors may consider when assessing MSI’s competitive positioning. AXON provides connected public-safety technology, while LHX has exposure to mission-critical communications and government customers. Their inclusion provides additional industry context without changing the article’s focus on MSI.
Zacks Research also has a $545 price target, with the report indicating that the target reflects 20.53X forward 12-month earnings. The valuation framework therefore leaves potential upside tied to both earnings growth and the market’s willingness to maintain a premium multiple.
Image Source: Zacks Investment Research
Motorola’s Balance Sheet Raises the Stakes
As of July 4, Motorola had $710 million in cash and cash equivalents, $8.42 billion in long-term debt and $615 million in short-term borrowings. Net debt was $8.32 billion, equal to 2 times trailing-12-month adjusted EBITDA. Second-quarter interest expense rose to $103 million from $86 million a year earlier.
The balance sheet could face additional financing demands as Motorola moves forward with acquisitions. The company agreed to acquire D-Fend Solutions for $1.5 billion and expects to close the Bell Canada LMR networks services transaction in late fourth-quarter 2026. Acquisition benefits could broaden the company’s technology portfolio, but financing, integration and amortization costs may affect earnings growth.
MSI’s Zacks Rank Supports the Growth Case
Motorola Solutions currently carries a Zacks Rank #2 (Buy), reflecting favorable trends in earnings estimate revisions. The Zacks Rank is designed for a one- to three-month horizon, while the company’s Zacks Recommendation is Outperform for a six- to 12-month horizon. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Style Scores provide a more mixed signal. MSI has a Value Score of D, Growth Score of C, Momentum Score of D and VGM Score of D. Zacks Style Scores complement the Zacks Rank by measuring value, growth and momentum characteristics. The Style Score framework favors stocks with A or B grades, particularly when paired with a Zacks Rank #1 or #2.
For MSI, the setup is therefore split. Earnings growth, backlog and higher guidance support the fundamental case, while the premium valuation, leverage and weaker Style Scores argue for a more selective approach. Sustained earnings execution will be important if the stock is to justify its current multiple.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

L3Harris Technologies, Inc.

Sign up and unlock all the capabilities of the AI-screener