LHX Forecast + Trading Strategies




Price Forecast:


Bearish<->Bullish




Bullish Case: High demand for defense systems amid geopolitical tensions, combined with new strategic partnerships, could bolster LHX earnings, especially given the forecast of increased defense budgets leading to significant contract wins.




Bearish Case: Persisting financial instability, highlighted by high debt levels and weakening earnings, alongside increasing competition in defense contracting sectors, may lead to further stock decline and erode investor confidence.




Potential Outcomes:

1) Increased defense contracts could provide a 45% chance of revenue growth.

2) Market volatility could pressure stock negatively (30% chance).

3) Continued financial distress could lead to a 25% chance of significant downturn.




Trading Oracle: Implement a bullish put credit spread by selling LHX 260 puts and buying LHX 240 puts. This utilizes current market conditions, capitalizing on expected stabilization in price with a significant expected return (20%) and high probability of profit (72%).



November 14, 2024


L3Harris Forecast

LHX        L3Harris











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