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 Technologies, Inc.

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares U.S. Aerospace & Defense ETF (Symbol: ITA) where we have detected an approximate $118.6 million dollar outflow -- that's a 1.3% decrease week over week (from 46,950,000 to 46,350,000). Among the largest underlying components of ITA, in trading today Northrop Grumman Corp (Symbol: NOC) is off about 1.1%, General Dynamics Corp (Symbol: GD) is down about 0.6%, and L3Harris Technologies Inc (Symbol: LHX) is lower by about 1.7%. For a complete list of holdings, visit the ITA Holdings page » The chart below shows the one year price performance of ITA, versus its 200 day moving average:
Looking at the chart above, ITA's low point in its 52 week range is $129.14 per share, with $200.75 as the 52 week high point — that compares with a last trade of $195.52. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable ETF Outflow Detected - ITA, NOC, GD, LHX

The global space economy is moving ahead at a rapid pace, driven by expanding satellite constellations, national security requirements, lunar exploration, and emerging commercial space markets. Lockheed Martin Corp. (LMT), being a key player in space innovation, stands to benefit from this growth trend through its integrated space mission solutions that span missile warning, advanced communications, and human exploration.
A centerpiece of Lockheed’s space program is the Orion spacecraft, developed in partnership with NASA as part of the Artemis missions, which aim at exploring the Moon, including establishing humanity's first lunar space station and sending astronauts to explore the lunar South Pole region.
In a major development in this program, Lockheed completed and delivered the Orion spacecraft to NASA in May 2025 for the Artemis II mission, which is scheduled for launch in April 2026 and aims to send four astronauts on a crewed lunar flyby.
Beyond Orion, Lockheed is investing heavily in next-generation satellite technology. Its Next-Generation Overhead Persistent Infrared (“OPIR”) missile-warning satellite for the U.S. Space Force reached system-level testing in 2024, completed environmental testing last month, and remains poised for 2025 launch. This satellite will provide essential global defense capabilities from geostationary orbit, enabling the detection of ballistic and hypersonic threats.
Lockheed is also driving advances in satellite constellations, AI-driven mission autonomy, and nuclear space propulsion, facilitating faster and more efficient space travel. Its development of proliferated Low Earth Orbit satellite constellations and the Tactical Satellite (TacSat) project exemplify the company’s emphasis on connectivity and resilience across domains.
Together, these initiatives showcase how Lockheed is shaping the future of space exploration, defense, and communications in the rapidly evolving space economy.
Other Stocks Warranting a Look
LMT apart, stocks like Boeing (BA) and L3Harris Technologies (LHX), which are heavily involved in space programs, warrant a look from investors interested in the space industry.
Notably, Boeing is the prime contractor for the U.S. Space Launch System program’s core stage, upper stage, and avionics systems. In July 2025, the ninth and tenth Boeing-built O3b mPOWER satellites were successfully launched, aimed at providing high-performance connectivity services to global users of the space solutions company, SES.
On the other hand, L3Harris supported more than 2,100 space launches that have provided critical intelligence to the United States. In August 2025, LHX’s advanced Navigation Technology Satellite-3 (NTS-3) was successfully launched on a United Launch Alliance Vulcan rocket, with NTS-3 being the U.S. Department of Defense’s first experimental navigation satellite system in nearly 50 years.
The Zacks Rundown for LMT
Shares of Lockheed have risen 8.9% in the past month compared with the industry’s growth of 1.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, LMT is currently trading at a forward 12-month earnings multiple of 17.16, a discount when stacked up with the industry average of 27.94.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LMT’s near-term earnings has moved south over the past 60 days.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Expanding Horizons: Lockheed's Role in the Growing Space Economy

Looking at the universe of stocks we cover at Dividend Channel, on 9/5/25, Mueller Industries Inc (Symbol: MLI), L3Harris Technologies Inc (Symbol: LHX), and Exponent Inc. (Symbol: EXPO) will all trade ex-dividend for their respective upcoming dividends. Mueller Industries Inc will pay its quarterly dividend of $0.25 on 9/19/25, L3Harris Technologies Inc will pay its quarterly dividend of $1.20 on 9/22/25, and Exponent Inc. will pay its quarterly dividend of $0.30 on 9/19/25. As a percentage of MLI's recent stock price of $95.63, this dividend works out to approximately 0.26%, so look for shares of Mueller Industries Inc to trade 0.26% lower — all else being equal — when MLI shares open for trading on 9/5/25. Similarly, investors should look for LHX to open 0.44% lower in price and for EXPO to open 0.42% lower, all else being equal.
Below are dividend history charts for MLI, LHX, and EXPO, showing historical dividends prior to the most recent ones declared.
Mueller Industries Inc (Symbol: MLI):
L3Harris Technologies Inc (Symbol: LHX):
Exponent Inc. (Symbol: EXPO):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.05% for Mueller Industries Inc, 1.74% for L3Harris Technologies Inc, and 1.67% for Exponent Inc..
In Wednesday trading, Mueller Industries Inc shares are currently down about 0.3%, L3Harris Technologies Inc shares are off about 0.8%, and Exponent Inc. shares are up about 0.8% on the day.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ex-Dividend Reminder: Mueller Industries, L3Harris Technologies and Exponent

As global defense spending rises amid geopolitical tensions, companies like Kratos Defense & Security Solutions, Inc. KTOS and L3Harris Technologies, Inc. LHX are gaining increased attention from investors. Growing investments in unmanned systems, satellite communications, cyber defense and advanced weapon systems position both firms to benefit from the defense industry’s ongoing expansion.
Kratos focuses on unmanned systems like tactical drones, space, propulsion, hypersonics and microwave electronics. On the other hand, L3Harris is a diversified defense contractor with a strong presence in communication systems, space, electronic warfare and tactical networks. With larger-scale operations, LHX plays a key role in delivering integrated solutions across multiple defense domains.
As countries enhance their defense capabilities with next-gen technologies, both KTOS and LHX are well-placed to benefit. Now, let’s take a closer look to determine which of these stocks presents a stronger investment case.
Key Takeaways for KTOS
Recent Achievements: Kratos ended the second quarter of 2025 with robust revenues. The company reported year-over-year revenue growth of 17.1%. It also increased its revenue guidance for 2025, from $1.26-$1.29 billion to $1.29-$1.31 billion.
Among more recent achievements, worth mentioning are Kratos’ partnership, signed in July 2025, with Champion Tire to debut driverless truck platooning at NASCAR, showcasing its defense-to-commercial autonomous technology for logistics and proving its scalability in high-speed real-world operations.
In June, Kratos announced plans to open a new advanced manufacturing facility in Bristow, OK, to produce its GEK turbojet engine family with an initial focus on the GEK800, strengthening its position in defense and aerospace propulsion.
Such enhanced revenue guidance, along with manufacturing facility expansion, reflects soaring demand for KTOS’ products.
Financial Stability: Kratos ended the second quarter of 2025 with cash and cash equivalents of $784 million, up from $329 million at the end of 2024. Its long-term debt stood at $233 million with no significant near-term maturities, suggesting this stock’s strong financial position. This could boost the company's ability to reliably fund its ongoing operations and future growth plans.
Challenges to Note: Alike other defense stocks, Kratos is also dealing with persistent supply-chain constraints, particularly limited access to raw materials. The company also faces labor shortages and rising inflationary costs, which may pressure margins and delay project execution. Moreover, potential changes in U.S. defense budgets or spending policies could restrict the pipeline of new contracts.
Key Takeaways for LHX
Recent Achievements: L3Harris ended second-quarter of 2025 on a solid note, with 15.8% year-over-year growth in earnings per share and 2.4% rise in revenues. The company also raised its revenue and earnings guidance for 2025.
More recently, L3Harris completed a $100 million expansion at its satellite integration and test facility in Palm Bay this month, enhancing Space Coast capabilities to support the Department of Defense’s Golden Dome program and ensuring the timely delivery of critical components.
In the same month, L3Harris launched the advanced Navigation Technology Satellite-3 (NTS-3) from Cape Canaveral on a ULA Vulcan rocket, marking the Department of Defense’s first experimental navigation satellite in nearly 50 years and the first fully reprogrammable PNT system designed to provide warfighters with flexible and resilient mission support.
These announcements are indicative of the soaring product demand that LHX is experiencing, which, in turn, is driving significant investment and successful deployment of advanced technology.
Financial Stability: L3Harris ended the second quarter of 2025 with cash and cash equivalents of $0.48 billion compared with $0.62 billion at the end of 2024. Its long-term debt stood at $10.98 billion, while its current debt was pinned at $1.13 billion. This indicates a relatively weak financial position, which could limit the company's ability to reliably fund its ongoing operations and future growth plans.
Challenges to Note: L3Harris continues to face labor shortages, a challenge faced by other players in the aerospace-defense sector, due to an aging workforce and higher-than-average attrition among younger employees. This shortage increases the risk of production delays and quality issues for LHX. With aircraft manufacturers raising production levels, these workforce constraints may make it harder for L3Harris to meet delivery timelines and impact its operating performance.
How do EPS Estimates Compare for KTOS & LHX?
The Zacks Consensus Estimate for KTOS’ 2025 earnings per share (EPS) is pegged at 51 cents, indicating year-over-year growth of 4.1%. The consensus estimate for revenues is pinned at $1.31 billion, implying growth of 15.2%. The company’s near-term EPS estimates reflect mixed movement over the past 60 days.
Image Source: Zacks Investment Research
For LHX, the Zacks Consensus Estimate for 2025 EPS is pegged at $10.50, indicating year-over-year decline of 19.9%. Its consensus estimate for revenues is pinned at $21.75 billion, showing growth of 2%. The company’s 2025 and 2026 EPS estimates have moved north over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: KTOS vs. LHX
KTOS has outperformed LHX over the past year. Shares of KTOS gained 195.4% compared with LHX’s 20.4% growth.
Image Source: Zacks Investment Research
LHX’s Valuation More Attractive Than KTOS
KTOS shares trade at a forward 12-month Price/Sales (P/S F12M) multiple of 7.73X compared with LHX’s P/S F12M of 2.28X, making LHX relatively more attractive from a valuation standpoint.
Image Source: Zacks Investment Research
Conclusion
Both Kratos and L3Harris are positioned to capture growth from rising defense budgets and modernization efforts. However, Kratos shows stronger momentum with earnings estimates implying year-over-year growth, strong financial position and better share price performance.
L3Harris, with its larger scale, diversified portfolio and favorable valuation, offers a more stable investment option for those seeking long-term reliability. Still, for investors looking at growth and momentum, Kratos currently appears more attractive.
Both KTOS and LHX carry a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

KTOS or LHX: Which Stock Stands Stronger in Today's Defense Boom?

Howmet Aerospace Inc. HWM and L3Harris Technologies, Inc. LHX are two prominent names operating in the aerospace and defense industry. While Howmet is a leading manufacturer of components and systems for jet engines and airframes, L3Harris offers integrated technologies, including avionics, electronic systems, and command and control systems, in the United States and internationally.
Both companies have been enjoying significant growth opportunities in the aerospace and defense space on account of the improving air traffic trend and the expansionary U.S. budgetary policy. But which one is a better investment today? Let’s take a closer look at their fundamentals, growth prospects and challenges to make an informed choice.
The Case for Howmet
The strongest driver of Howmet’s business at the moment is the commercial aerospace market. The persistent strength in air travel has been driving demand for wide-body aircraft, in turn, supporting continued OEM spending. Pickup in air travel has been favorable for the company as the increased usage of aircraft spurs spending on parts and products that it provides.
Revenues from the commercial aerospace market increased 8% year over year in the second quarter of 2025, constituting 52% of its business. The sustained strength was attributed to new, more fuel-efficient aircraft with reduced carbon emissions and increased spare demand for engines. The Boeing Company BA is also anticipated to witness a gradual production recovery, particularly in the Boeing 737 MAX aircraft, which is likely to boost demand for Howmet’s products in the market.
Howmet is also benefiting from solid momentum in the defense business, cushioned by steady government support. HWM continues to witness robust orders for its engine spares for the F-35 program and other legacy fighters. Revenues from the defense aerospace market surged 21% year over year in the second quarter, constituting 17% of the company’s business.
It's worth noting that in July 2025, the House of Representatives passed the fiscal year 2026 Defense Appropriations Act, providing a total discretionary allocation of $831.5 billion. Such robust budgetary provisions set the stage for Howmet, which remains focused on its defense business to win more contracts, which is likely to boost its top line.
HWM’s commitment to rewarding its shareholders through dividend payouts and share buybacks is also encouraging. In the first half of 2025, it paid dividends worth $83 million and repurchased shares for $300 million. In January 2025, the company hiked its quarterly dividend by 25% to 10 cents per share.
Also, in July 2024, Howmet’s board approved an increase in the share repurchase program by $2 billion to $2.487 billion of its common stock. As of July 2025, HWM’s total share repurchase authorization available was $1.8 billion.
The company’s shareholder-friendly policies are supported by its healthy liquidity position. Exiting the second quarter, Howmet’s cash equivalents and receivables were $545 million, much higher than its short-term maturities of $5 million. In the first six months of the year, HWM generated net cash of $699 million from operating activities, while its free cash flow totaled $478 million.
The Case for L3Harris
L3Harris is well-positioned to benefit from solid U.S. budget funding provisions. The company claims that its Hypersonic and Ballistic Tracking Space Sensor satellite, known as HBTSS, launched in February 2024, is the only proven on-orbit system capable of tracking the new-range hypersonic missiles. This should provide it with a competitive edge in becoming the primary contractor for the Golden Dome program.
Notably, the company completed a $125 million expansion at its space manufacturing facility in Fort Wayne, IN, in April 2025, to support the Department of Defense’s urgent need for on-orbit technology to defend the homeland by building the “Golden Dome.”
While the company boasts a solid position in the U.S. defense space, its international presence also remains significant. Evidently, during the second quarter of 2025, the company’s international revenues accounted for approximately 20.7% of its total revenues. L3Harris continues to witness strong demand for its defensive solutions from Asia-Pacific, Latin America and South America, as well as the NATO allies of the United States.
During second-quarter 2025, L3Harris secured software-defined radio awards worth $181 million and $214 million, respectively, from the German and Czech armed forces. The company also signed a memorandum of understanding with Thales UK to develop an integrated short-range air defense (SHORAD) command and control capability.
However, the company’s highly leveraged balance sheet remains a major concern. Exiting second-quarter 2025, L3Harris’ cash and cash equivalents amounted to $0.48 billion. On the other hand, its long-term debt of $10.98 billion remained much above the cash balance. Its current debt of $1.13 billion also came in higher than its cash reserve.
Persistent shortage of labor in the aerospace-defense industry continues to pose a threat. Due to such labor shortages, manufacturing companies like L3Harris, which supply critical components for the aerospace and defense industry, might be unable to deliver the finished products within the stipulated timeline, which may impact their performance.
The Zacks Consensus Estimate for HWM & LHX
The Zacks Consensus Estimate for HWM’s 2025 sales and earnings per share (EPS) implies year-over-year growth of 9.4% and 32.7%, respectively. HWM’s EPS estimates for both 2025 and 2026 have increased over the past 60 days.
Image Source: Zacks Investment Research
While the Zacks Consensus Estimate for LHX’s 2025 sales indicates year-over-year growth of 2%, the EPS estimate implies a decline of 19.9%. LHX’s EPS estimates have been trending northward over the past 60 days for both 2025 and 2026.
Image Source: Zacks Investment Research
Price Performance and Valuation
In the past year, Howmet shares have soared 76.9%, while L3Harris stock has gained 20.4%.
Image Source: Zacks Investment Research
HWM is trading at a forward 12-month price-to-earnings ratio of 42.42X, above its median of 28.18X over the last three years. LHX’s forward earnings multiple sits at 23.61X, above its median of 16.34X over the same time frame.
Image Source: Zacks Investment Research
Final Take on HWM & LHX
L3Harris’ strength in the aerospace and defense markets has been dented by the continued supply-chain challenges and labor shortages. The company’s solid momentum in domestic and international markets adds to its strength. However, its high debt profile remains a major constraint.
In contrast, Howmet’s market leadership position and strength in both commercial and defense aerospace markets provide it with a competitive advantage to leverage the long-term demand prospects in the aerospace market. Despite its steeper valuation, HWM holds robust prospects due to strong estimates, stock price appreciation and better prospects for sales and profit growth.
Given these factors, HWM seems to be a better pick for investors than LHX currently. While HWM currently carries a Zacks Rank #2 (Buy), LHX has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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.

Howmet vs. L3Harris: Which Aerospace & Defense Stock Should You Bet On?

Key Points
Joby Aviation continues to make progress toward commencing commercial operations.
Vertical Aerospace is an eVTOL company offers investors an interesting way to play the market, and it trades on a low market cap, suggesting a favorable risk/reward proposition.
The Ark Space Exploration & Innovation ETF continues to rocket higher.
Joby Aviation (NYSE: JOBY) was part of the boom in businesses that went public via a special purpose acquisition company (SPAC) in 2021. But unlike many of those names, the electric vertical take-off and landing (eVTOL) aircraft company has made investors money -- staging an epic recovery after a multiyear downswing. Joby is up a staggering 219.2% in the last year, at the time of this writing.
Investors who are interested in Joby Aviation may also want to consider Vertical Aerospace (NYSE: EVTL), as well as an exchange-traded fund (ETF) -- the Ark Space Exploration & Innovation ETF (NYSEMKT: ARKX). Here's why these two growth stocks and ETF could be worth a closer look now.
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Things have heated up this summer for Joby Aviation
Scott Levine (Joby Aviation): While Joby Aviation is still waiting for the final certifications from the FAA to start ferrying passengers back and forth with its electric air taxi service, it doesn't mean the company is sitting idle. Over the past couple of months, Joby has reported some notable news indicating that the company is working hard to hit the ground running when it receives the requisite FAA certification, making it an eVTOL stock that demands to be on the radar of any investor interested in gaining exposure to the nascent industry.
Most recently, Joby notched an aviation industry first when it completed an eVTOL flight between two U.S. public airports: Marina and Monterey, both of which are in California. Management lauded the accomplishment "a major step as part of Joby's commercial market readiness, highlighting key capabilities across safety, operations, air traffic control, and certification progress."
But there are even bigger developments that the upstart eVTOL company reported this summer. For one, Joby announced its plan to acquire the urban air mobility business of Blade Air Mobility. When the transaction closes (presumably in the next few weeks), Joby will gain immediate market access to infrastructure assets, as well as urban corridors in New York City and Southern Europe.
Diversifying beyond the civilian market, Joby announced a partnership with L3Harris to collaborate on developing hybrid eVTOL aircraft suited for defense applications. Should the partnership with L3Harris, a leading defense contractor, bring a defense aircraft to fruition, it will help Joby diversify its revenue base and mitigate the risk associated with the company's air taxi business.
For investors looking to land an eVTOL stock in their portfolios, Joby is a consideration they can't afford to ignore.
An interesting eVTOL stock you probably haven't heard of
Lee Samaha (Vertical Aerospace): As you can see in the chart, the British eVTOL company's market cap is a mere fraction of its U.S. peers' market cap.
Part of it comes down to Vertical Aerospace's short financial runway. According to CEO Stuart Simpson, "Our cash runway takes us into the middle of 2026 with our cash and cash equivalents as of today, approximately $139 million."
Another part of it is possibly the different regulatory path followed by Vertical Aerospace. The company is seeking certification for its aircraft with the U.K.'s Civil Aviation Authority and the European Union Aviation Safety Agency. After this, it will work on certification with the FAA and other regulators worldwide.
However, the good news is that the current capital position will enable the company to "begin the assembly of our next aircraft, our pre-production or certification aircraft, and continue to expand our certification aircraft supply chain." Vertical recently completed the first public-to-airport eVTOL flight by a commercially planned vehicle. It also has 1,500 preorders in place for its aircraft, including from American Airlines and Japan Airlines.
Vertical Aerospace will require capital to complete its aims, and there are no guarantees it will. Still, it offers an interesting option for investors looking to diversify eVTOL holdings, and potentially more upside due to its low valuation.
Shoot for the stars with this high-octane ETF
Daniel Foelber (Ark Space Exploration & Innovation ETF): The Ark Space Exploration & Innovation ETF has been on a tear -- up 36.2% year to date and 78% over the last year. According to Ark Invest's overview of the ETF: "The advisor defines 'Space Exploration' as leading, enabling, or benefiting from technologically enabled products and/or services that occur beyond the surface of the Earth, including autonomous mobility, intelligent devices, advanced battery technologies, 3D printing, reusable rockets, adaptive robotics, and neural networks."
The fund addresses the space theme across industries -- through growth-focused companies as well as legacy industrial companies like L3Harris, Deere, and Komatsu. And like other Ark funds, the ETF is not remotely market-cap-weighted -- meaning that the highest-weighted holdings will be the fund managers' top picks rather than the most valuable companies. The fund's largest holding -- Kratos Defense & Security -- only has a market cap of $11.5 billion compared to $420.3 billion for fifth-place Palantir Technologies.
Vertical take-off and landing plays into the "space theme," with Archer Aviation, Joby Aviation, and Blade Air Mobility combining for 11.2% of the ETF. The ETF has many recognizable names, but also some companies you may have never heard of -- like unmanned aircraft system maker Aerovironment and satellite giant Iridium Communications -- the third- and fourth-largest holdings by weighting. Again, since the fund isn't market-cap weighted, it can put more conviction in these companies and still have small pieces of megacap growth companies. The fund holds Nvidia and Alphabet, but they only make up 2.7% and 1.7% of the fund, respectively.
The Ark Space Exploration & Innovation ETF sports a relatively high expense ratio at 0.75% -- which is far higher than the expense ratios investors may be used to from passive funds. The key difference is that the Ark Space Exploration & Innovation ETF is actively managed and very nuanced. The higher expense ratio is the fee for the active management, but it has certainly been worth it, given the fund's epic gains.
All told, the Ark Space Exploration & Innovation ETF could be a good pick for investors who are interested in "space" outside just eVTOL.
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Daniel Foelber has positions in Nvidia. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AeroVironment, Alphabet, Deere & Company , L3Harris Technologies, Nvidia, and Palantir 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.

Like Joby Aviation? Then You'll Love This eVTOL Growth Stock and ETF.

On Aug. 13, U.S. President Donald Trump signed a new executive order, aimed at dramatically accelerating the U.S. commercial space industry by reducing environmental review timelines, streamlining launch and spaceport permits, and expediting approvals for novel missions to enhance national and economic security. This regulatory push should act as a major growth catalyst for defense titan, Lockheed Martin Corp. (LMT), which has been at the forefront of the space industry for more than half a century now.
Notably, Lockheed is a prime contractor for NASA's deep-space Orion spacecraft and builds key satellites for national security. LMT’s most direct benefit comes through its joint venture with Boeing, United Launch Alliance (“ULA”), which is a major player in launching crucial government payloads.
In particular, the order's mandate to expedite environmental reviews at launch sites and the push to reform safety rules for vehicles with advanced flight termination systems can be projected to expedite ULA's Vulcan Centaur rocket launch with less delay and cost.
As this executive order slashes regulatory delays and costs, Lockheed's strategy to commercialize Orion through reusability and flexible missions should prove beneficial. By streamlining launch cadence and approvals, the order directly supports Lockheed's push to improve cost-effectiveness and meet NASA's evolving space exploration needs more competitively.
Other Stocks to Benefit
LMT apart, stocks like Boeing (BA) and L3Harris Technologies (LHX) that are deeply involved in space missions should also benefit from the aforementioned executive order, which pushes to substantially increase commercial space launch cadence.
Notably, Boeing is part of NASA’s Space Launch System (“SLS”), the only proven deep-space optimized, super-heavy lift rocket built to carry astronauts and cargo farther and faster than any rocket in history. BA is the prime contractor for the SLS program’s core stage, upper stage and avionics systems.
On the other hand, L3Harris is involved in the Artemis II mission through its Aerojet Rocketdyne business unit, which provides the RS-25 engines that power the SLS core stage. The company supported more than 2,100 space launches that provided critical intelligence to the United States.
The Zacks Rundown for LMT
Shares of LMT have lost 9% in the year-to-date period against the industry’s 26.9% growth.
Image Source: Zacks Investment Research
The company’s shares are trading at a discount on a relative basis, with its forward 12-month Price/Earnings being 16.26X compared with its industry’s average of 27.54X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for LMT’s near-term earnings has moved south in the past 60 days.
Image Source: Zacks Investment Research
LMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will Trump's New Executive Order Fast-Track Lockheed's Space Ambitions?

Key Points
For the first two decades of the 21st century, defense stocks sold for an average of 1.4x sales.
Today, these same defense stocks cost twice as much.
The defense sector is booming, yes. But the risk is also rising.
For more than a year now, I've been warning investors that defense stocks cost too much. At first, that warning seemed prescient, when shares of almost all of America's leading publicly traded defense companies declined within months of my sounding the alarm. Fast forward nearly a year, and things have gotten both better... and worse.
The better: Defense stock prices bounced back (which should make current shareholders happy).
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The worse: As of today, almost all defense stocks look more overpriced than ever before. For anyone looking to buy new shares of defense stocks, this is bad news.
What history says about defense stocks
How do I come to these conclusions? By looking at the data.
Over the 10-year period running from 2004 to 2013, over the 10 years running from 2014 to 2023, and over the 20-year period running from 2004 to 2023, I've calculated the average enterprise value-to-sales ratios (EV/S) for each of 10 major U.S. defense companies, using data from S&P Global Market Intelligence.
(As a reminder, EV/S ratios are similar to price-to-sales ratios, except that EV/S adjusts market capitalizations to factor in net cash on the balance sheet -- or, more commonly, net debt).
As you'll see below, these data show that defense companies early in the 21st century cost about 1x their annual sales, but that prices have been climbing steadily for the past decade. Averaging out the numbers, for the past 20 years defense stocks have cost about 40% more than their annual sales -- and this is the number I'm tentatively assuming to be the new "fair value" for defense stocks.
Average enterprise value-to-sales ratio (EV/S) from:
2004-2013
2014-2023
2003-2023
Average
1.06
1.89
1.40
Data source: S&P Global Market Intelligence. * Huntington Ingalls data begins in 2011, the year when Northrop Grumman spun off Huntington Ingalls as a separate company. ** Leidos data begins in 2006, the year of its IPO. Data on its average enterprise value-to-sales ratio for 2014 is missing because the company changed its fiscal year in 2015, skewing the data somewhat.
Now we compare these 20-year-average numbers to what the stocks cost today. (To make it easier for readers to quality-check my numbers, I provide both EV/S, and more commonly available P/S ratios).
EV/S today
Price-to-sales ratio today
Boeing
2.74
2.21
General Dynamics
1.86
1.71
Huntington Ingalls
1.13
0.91
Kratos Defense & Security Solutions
9.20
8.87
Leidos Holdings
1.62
1.38
L3Harris Technologies
2.91
2.40
Lockheed Martin
1.69
1.42
Northrop Grumman
2.43
2.08
RTX Corp
2.95
2.51
Textron
1.16
1.03
Average
2.77
2.45
What this means for defense stock investors
So what has changed since the last time we checked in on the defense stocks, three months ago?
Basically, every single one of these stocks, with the sole exception of Lockheed Martin, has gotten more expensive. Lockheed, if you recall, suffered a steep sell-off after reporting "a significant profit miss" last month caused by a near-$1 billion charge on "a classified aerospace project," and it still hasn't fully recovered from that misstep. But all the others have.
Again, this probably sounds like good news for investors who own defense stocks. But these stretched valuations bring with them a significant risk of future steep declines, for both existing and new buyers. The average EV/S ratio of this group, 2.77, means that defense stocks as a whole currently cost nearly twice what has historically been their fair value.
Will this decline happen tomorrow? Probably not. In fact, with military tensions continuing to rise in the South China Sea and elsewhere, active conflict persisting in the Middle East, and Europe still embroiled in its biggest land conflict since World War II, investors may keep betting on military stocks for quite some time.
But with valuations as extreme as what we see today, I simply don't see much reason to expect defense stocks to move higher. On the contrary, if I were to bet on it, my hunch is that over the next decade, defense stocks will underperform the S&P 500 by a significant margin.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends L3Harris Technologies. The Motley Fool recommends Lockheed Martin, RTX, and Textron. 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.

Defense Stocks Just Got Even More Expensive

Key Points
One of Cathie Wood's largest positions in the Ark portfolio is Palantir Technologies, which dominates the military intelligence pocket of the artificial intelligence (AI) realm.
More recently, she has been building a stake in one of Palantir's key partners.
As AI becomes a higher priority for military operations, traditional defense contractors could be positioned for long-term gains.
CEO and chief investment officer of Ark Invest Cathie Wood earned a reputation for making high-conviction bets on disruptive, speculative opportunities aimed at toppling legacy incumbents in markets such as financial services, technology, and pharmaceuticals. When it comes to artificial intelligence (AI) stocks, it's no surprise that Wood has taken a liking to data analytics powerhouse Palantir Technologies, the third-largest holding across Ark's exchange-traded funds (ETFs).
Every now and then, however, Wood quietly complements Ark's high-growth positions with a select group of blue-chip counterparts. In Palantir's case, the company is often linked with an emerging corner of the AI realm, using its analytics platforms to bolster the capabilities of the U.S. Department of Defense (DOD).
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While Palantir will likely remain a core Ark position, recent buying activity hints that Wood may be broadening her exposure within the national security arena, scouting for under-the-radar opportunities even as Palantir remains her flagship pick at the intersection of AI and military operations.
Throughout the summer, Wood has been accumulating shares of L3Harris Technologies (NYSE: LHX) in both the ARK Space Exploration & Innovation and ARK Autonomous Technology & Robotics funds.
Let's explore what may have prompted this move and assess if defense tech investors should consider looking beyond familiar names like Palantir.
Understanding how AI fits into the defense equation
While AI has become the dominant megatrend driving the technology sector, most conversations still center on chips, data centers, cloud infrastructure, or workplace productivity tools. Behind the scenes, however, AI is rapidly emerging as a transformative tailwind reshaping modern military strategy.
AI's applications in national security range from satellite imagery analysis and equipment maintenance to cybersecurity threat detection and autonomous navigation for unmanned systems like drones.
Among established defense contractors, the usual names include Northrop Grumman, General Dynamics, Lockheed Martin, Boeing, RTX, Kratos Defense & Security Solutions, and L3Harris.
Palantir stands apart from these incumbents thanks to its versatile AI platforms, including Foundry and Gotham. This integrated ecosystem has positioned Palantir as the operating system supporting a wide range of military operations, securing billion-dollar contracts with the Army and Navy, and extending its reach overseas through collaborations with U.S. allies in NATO.
Why might Cathie Wood like L3Harris stock?
Like many of its peers mentioned above, L3Harris manufactures mission-critical systems poised to benefit from deeper integration of AI-enhanced capabilities. This makes it plausible that Wood is targeting stealth opportunities to complement Ark's more pure play AI holdings, such as Palantir.
That same logic helps explain why several defense-adjacent companies such as electric vertical take-off and landing aircraft (eVTOL) Archer Aviation and Joby Aviation, Kratos, AeroVironment, and Lockheed found a place in Ark's portfolio. When it comes to L3Harris however, I think there is a more specific catalyst behind Wood's recent buying.
While Palantir often commands the spotlight in the DOD's high-profile technology awards, many other contractors secure portions of these deals. L3Harris is one of them, partnering with Palantir to develop the Army's next-generation ground transportation systems under the Titan program.
During the company's second-quarterearnings call L3Harris CEO Christopher Kubasik even highlighted the collaboration, noting, "our ongoing partnership with Palantir on the U.S. Army's Titan program continues to mature".
Is L3 Harris stock a buy?
The comparable company analysis benchmarks L3Harris against a peer set of leading defense contractors on an enterprise value-to-EBITDA (EV/EBITDA) basis.
From a valuation standpoint, L3Harris trades at an EV/EBITDA multiple of 16.4 -- a discount to historical peaks but still on the higher end of this cohort. Despite this relative premium, analysts largely view L3Harris through the lens of a conventional defense contractor, valuing the company based on its current contracts and pipeline.
I think that the upside from AI integration is not yet fully reflected in L3Harris's share price. As AI-enabled services become a greater priority at the Pentagon, the narrative around traditional contractors could shift especially as they form deeper ties with leading technology platforms like Palantir -- as L3Harris is already doing.
For this reason, I see L3Harris as well positioned for long-term valuation expansion and consider it a savvy buy at current levels.
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Adam Spatacco has positions in Palantir Technologies. The Motley Fool has positions in and recommends AeroVironment, L3Harris Technologies, and Palantir Technologies. The Motley Fool recommends Lockheed Martin and RTX. 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.

Cathie Wood Just Loaded Up on This Defense Stock (Hint: It's Not Palantir)

(RTTNews) - L3Harris Technologies' (LHX) advanced Navigation Technology Satellite-3 - NTS-3 successfully launched aboard a United Launch Alliance Vulcan rocket from Cape Canaveral Space Force Station.
The Department of Defense's first experimental navigation satellite in nearly five decades, NTS-3, is the first fully reprogrammable Positioning, Navigation and Timing (PNT) satellite, designed to give U.S. warfighters a resilient and flexible capability in GPS-denied environments. L3Harris leadership noted the system's role in modernizing outdated navigation technology to counter evolving security threats.
Built three times faster and at lower cost than comparable programs, NTS-3 is smaller, lighter, and capable of higher-altitude operations. Once on orbit, it will conduct experiments to guide future PNT advancements, leveraging modular payload technology that supports affordability and rapid mission timelines.
L3Harris propulsion and avionics also powered the Vulcan rocket, including RL10 engines delivering nearly 48,000 pounds of thrust, 12 MR-107 thrusters for steering, and critical flight controllers, transmitters, and data systems that ensured precise orbital delivery.
LHX currently trades at $269.03 or 0.44% lower on the NYSE.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.