NYSE:LHX) which saw its share price drive 145% higher over five years. We note the stock price is up 1.4% in the last seven days.” data-reactid=”28″ type=”text”>When you buy a stock there is always a possibility that it could drop 100%. But when you pick a company that is really flourishing, you can make more than 100%. One great example is L3Harris Technologies, Inc. (NYSE:LHX) which saw its share price drive 145% higher over five years. We note the stock price is up 1.4% in the last seven days.
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During five years of share price growth, L3Harris Technologies achieved compound earnings per share (EPS) growth of 17% per year. This EPS growth is reasonably close to the 20% average annual increase in the share price. This indicates that investor sentiment towards the company has not changed a great deal. Indeed, it would appear the share price is reacting to the EPS.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
report on L3Harris Technologies’ earnings, revenue and cash flow.” data-reactid=”49″ type=”text”>We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. It might be well worthwhile taking a look at our free report on L3Harris Technologies’ earnings, revenue and cash flow.
What About Dividends?
A Different Perspective
L3Harris Technologies is showing 3 warning signs in our investment analysis , you should know about…” data-reactid=”53″ type=”text”>L3Harris Technologies shareholders are down 13% for the year (even including dividends), but the market itself is up 23%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn’t be so upset, since they would have made 22%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that L3Harris Technologies is showing 3 warning signs in our investment analysis , you should know about…
list of growing companies with recent insider purchasing, could be just the ticket.” data-reactid=”54″ type=”text”>L3Harris Technologies is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.