ESLT Should I Buy
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Elbit Systems Ltd (ESLT) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown strong financial performance and benefits from increased defense spending, the stock appears to be fairly valued or potentially overvalued after a 95% year-to-date increase. The technical indicators and lack of significant trading signals suggest no immediate entry opportunity.
The MACD histogram is negative and contracting (-10.647), indicating bearish momentum. RSI is neutral at 45.253, and moving averages are converging, showing no clear trend. The stock is trading below the pivot level of 684.797, with support at 655.482 and resistance at 714.111. Overall, the technical indicators suggest a neutral to slightly bearish outlook.
Strong Q3 2025 financial performance with revenue up 11.88% YoY, net income up 68.63% YoY, and EPS up 58.19% YoY. Increased defense spending in Israel, NATO countries, and the U.S. provides a favorable demand environment.
The stock has already risen 95% year-to-date, suggesting much of the growth potential may already be priced in. Analysts have mixed ratings, with some indicating the stock is fairly valued or overvalued. Technical indicators do not show a strong buy signal.
In Q3 2025, the company reported strong growth: Revenue increased by 11.88% YoY to $1.92 billion, Net Income rose by 68.63% YoY to $133.39 million, EPS grew by 58.19% YoY to 2.8, and Gross Margin improved to 24.89%, up 3.58% YoY.
Analysts have mixed views. JPMorgan raised the price target to $580 but maintained a Neutral rating, citing a nuanced defense outlook. Morgan Stanley initiated coverage with an Equal Weight rating and a $531 price target, noting the stock's significant year-to-date gains. BofA raised the price target to $550 and maintained a Buy rating, citing strong revenue growth and increased defense spending.
