L3 stock: buy or sell?
May 21st, 2019
L3 Technologies, Inc. provides aerospace systems, communication, electronic, and sensor systems used on military, homeland security, and commercial platforms in the United States and internationally.
Should I buy L3 stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
Currently, 2 buy setups are elegible for L3 stock now:
|New all-time high||Yes|
|New 52 week high||Yes|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is L3 Technologies stock a buy?
Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we collected 5 ratings published for LLL stock in the last month. The general sentiment of these ratings is bullish for LLL stock, with 5 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-5-2||Credit Suisse Group||n/a||Outperform|
L3 stock analysis
L3 jumped 2.50% today to $242.88 after topping to all time highs today.
L3 jumped 2.50% today and set a new all time high at $243.09. Since last May/13 when SMA100d and SMA200d crossed up, LLL price gained $8.57 per share (3.66%). Since price and SMA200d lines crossed up on January, LLL climbed $60.23 (32.98%). From a daily perspective, LLL is in a short term uptrend after plotting its last bottom ($225.69, on May 6th) higher than the previous bottom, and its last top ($240.08, on Friday) also over the previous top. Now trading in between its last bottom and last top LLL might consolidate in a plain range, waiting to break out over $240.08 or down under $225.69.
L3 shares topped new all time highs back again this week, marking to $243.09. Shares ended at $242.88 and gained 2.29% during the week. This week was the fifth green week in a row. Late April LLL climbed an astounding 6.38% in just one week.
L3 Technologies is in a glaring downtrend, marking consecutive declining tops and bottoms. Now is trading in between the - range. There is an opportunity to rebound and reverse this situation if price can hold above the level. Early May, SMA20w and SMA40w crossed up triggering a rise of 5.94%. Since price and SMA40w lines crossed up late January, LLL climbed $59.80 (32.66%).
L3 stock price history
L3 IPO was on May 19th, 1998 at $9.20 per share1. Since then, LLL stock grew a 2,540.00%, with a yearly average of 121.00%. If you had invested $1,000 in L3 stock in 1998, it would worth $25,400.00 today.
1: Adjusted price after possible price splits or reverse-splits.
L3 stock historical price chart
LLL stock reached all-time highs today with a price of $243.09.
L3 stock price target is $249.60Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we found 5 price predictions for L3 stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-5-2||Credit Suisse Group||Reiterates||$232.00||$258.00||11.2%|
Financials and fundamental analysis
Earnings date and Earnings per ShareSince Apr 29th, when L3 Technologies published its last earnings report, it rose a phenomenal 13.16%. As soon as we get its actual EPS from the earnings report, we will extend this report.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, L3 Technologies annual revenues escalated a pretty good 7.01% to $10,244.00 M USD from $9,573.00 marked in 2017. When comparing 2018 vs 2017, likewise, profit margin (that is, the net income divided by revenues) appreciated a 2.74% to 9.81%. L3 presents anual results in December, and to compare its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, L3 TTM sales up to March 2019 were $10,573.00 and earnings $1,019.00 million USD. When comparing this TTM figures with the last reported annuality, we can esteem L3 Technologies business evolution since December 2018: Annual revenues up to March, compared to lastest yearly report, inched a beatiful 3.21%. By contrast, profit margin (net income/revenues) remained constant at 9.81%.
|2013||$12,630 M||-||$778 M6.2%||-|
|2014||$12,124 M||-4.01%||$664 M5.5%||-14.65%|
|2015||$10,466 M||-13.68%||$-240.00 M-2.3%||-136.14%|
|2016||$10,511 M||0.43%||$710 M6.8%||-395.83%|
|2017||$9,573 M||-8.92%||$677 M7.1%||-4.65%|
|2018||$10,244 M||7.01%||$1,005 M9.8%||48.45%|
|TTM||$10,573 M||3.21%||$1,019 M9.6%||1.39%|
Quarterly financial resultsL3 reported $2,700.00 million in revenues for 2019-Q1, a -2.56% decline compared to previous quarter. Reported quarter income marked $217.00 M with a profit margin of 8.04%. Profit margin remained steady a -0.08% compared to previous quarter when profit margin was 8.12%. When comparing turnover to same quarter last year, L3 Technologies sales marked an outstanding growth and boosted a 13.88%.
|2017-Q2||$2,730 M||-||$202 M7.4%||-|
|2017-Q3||$2,650 M||-2.93%||$23 M0.9%||-88.61%|
|2017-Q4||$2,574 M||-2.87%||$289 M11.2%||1,156.52%|
|2018-Q1||$2,371 M||-7.89%||$203 M8.6%||-29.76%|
|2018-Q2||$2,583 M||8.94%||$375 M14.5%||84.73%|
|2018-Q3||$2,519 M||-2.48%||$202 M8.0%||-46.13%|
|2018-Q4||$2,771 M||10.00%||$225 M8.1%||11.39%|
|2019-Q1||$2,700 M||-2.56%||$217 M8.0%||-3.56%|
L3 ownershipWhen you are planning to buy a company, it's worth to review its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For L3 Technologies, 0.59% of all outstanding shares are owned by its staff.
Bearish positions for LLL stock account 0.00%, no big difference from last month.
For a better understanding, the following table shows ownership data compared to other related companies:
|Market cap||$19.3 B||$1.9 B||$59.4 M||$6.7 B||$123.4 B|
|Total shares||79.5 M||31.2 M||2.4 M||135.4 M||727.7 M|
|Float shares||79.0 M||29.0 M||1.7 M||134.3 M||696.3 M|
|- Institutional holdings (%)||83.2%||97.2%||17.3%||96.7%||77.1%|
|- Insider holdings (%)||0.6%||0.5%||21.3%||0.7%||0.4%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Tuesday, May 21st, 2019|
|Day range||$238.51 - $243.09|
|Average true range||$4.51|
|50d mov avg||$217.21|
|100d mov avg||$204.90|
|200d mov avg||$201.74|
L3 performanceTo measure stock performance is always good to benchmark with competitors or related stocks. We compared L3 Technologies against Cubic, Espey Mfg. & Electronics, FLIR Systems, Honeywell International, Harris, ITT, Kratos Defense & Security Solutions, Northrop Grumman and Raytheon in the following table:
|ESPEspey Mfg. & Elec...||-3.51%||-8.16%||-3.81%|
|KTOSKratos Defense & ...||17.41%||51.65%||86.45%|
L3 competitorsOne check before investing in any stock is to review a list of its competitors, in this case for L3 Technologies. We chose 9 companies as L3 Technologies competitors as they are in the same industry or have similar market objectives.
- Cubic (CUB)
- Espey Mfg. & Electronics (ESP)
- FLIR Systems (FLIR)
- Honeywell International (HON)
- Harris (HRS)
- ITT (ITT)
- Kratos Defense & Security Solutions (KTOS)
- Northrop Grumman (NOC)
- Raytheon (RTN)
Latest L3 stock news
- Seeking AlphaShareholders Approve The Merger Of Harris And L3May 15, 2019
- InvestorPlaceDefense Stocks: L3 Technologies Stock Skyrockets on Harris MergerOctober 15, 2018
- Seeking AlphaL3: Business Restructuring Provides OpportunityAugust 27, 2018