10 Best Space Stocks To Buy According To Analysts

5. L3Harris Technologies, Inc. (NYSE:LHX)

Average Share Price Upside Potential as of January 16: 26.59%

Number of Hedge Fund Holders: 40

L3Harris Technologies, Inc. (NYSE:LHX) is an American defense company, known for its wireless and night vision equipment, command and control systems, avionics, and terrestrial and spaceborne antennas. It was formed in 2019 after a merger between Harris Corporation and L3 Technologies.

The company produces propulsion and power systems for rockets, spacecraft, missiles, missile defense systems, and other tactical systems. LXH has been at the forefront of several critical space and missile programs for the United States military, reflecting its significance in the sector.

On January 7, U.S. Space Force’s Space Systems Command awarded L3Harris Technologies, Inc. (NYSE:LHX) a contract to design concepts for the Resilient GPS program, which will involve the procurement of small satellites that will augment existing constellations to provide resilience to civil and military GPS users.

The company is also working on a contract to build 18 infrared space vehicles for the SDA’s Tranche 2 Tracking Layer program to provide missile warning and tracking. The contract, awarded in January 2024, is valued at $919 million. Later that year in May, L3Harris Technologies, Inc. (NYSE:LHX) received an order from the Millennium Space Systems to build Electro-Optical Infrared Payloads for the SDA’s FOO Fighter Program.

During its Q3 2024 earnings call on October 24, LXH reported a quarterly revenue of $5.3 billion, up 8% from last year. Operating margins increased by 70 basis points to 15.7%, driven by continuing program executions and strong operational performance, with significant contributions from LHX NeXt. Non-GAAP diluted EPS was $3.34, growing 5% year-over-year.

The company acknowledged budget pressures on the space side but is hopeful of seeing increased growth starting in 2026 as more customers transition from aerial missions to space. L3Harris Technologies, Inc. (NYSE:LHX) is one of the best space stocks to buy according to analysts, with an average share price upside potential of 26.59% as of January 16.