Look Under The Hood: FEX Has 15% Upside
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 03 2025
0mins
Source: NASDAQ.COM
ETF Analysis: The First Trust Large Cap Core AlphaDEX Fund ETF (FEX) has an implied analyst target price of $119.82 per unit, indicating a potential upside of 14.79% from its current trading price of $104.38.
Stock Performance Insights: Notable underlying holdings such as Tenet Healthcare Corp., L3Harris Technologies Inc., and Alnylam Pharmaceuticals Inc. show significant upside potential based on analysts' target prices, raising questions about the validity of these targets in light of recent market developments.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy LHX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on LHX
Wall Street analysts forecast LHX stock price to fall
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 310.450
Low
212.00
Averages
253.50
High
280.00
Current: 310.450
Low
212.00
Averages
253.50
High
280.00
About LHX
L3Harris Technologies, Inc. provides end-to-end technology solutions connecting the space, air, land, sea and cyber domains in the interest of national security. Its segments include Space & Airborne Systems (SAS), Integrated Mission Systems (IMS), Communication Systems (CS), and Aerojet Rocketdyne (AR). The SAS segment supplies full mission solutions as a prime and subsystem integrator in the space, airborne and cyber domains. The IMS segment delivers differentiated mission capabilities and prime systems integration to support intelligence, reconnaissance and surveillance (ISR), passive sensing and targeting, electronic attack, autonomy, power and communications, networks and sensors. CS enables warfighters across all domains with solutions critical to mission success even in the contested environments. The AR segment provides propulsion, power and armament products and systems to the U.S. Government, including the DoD, NASA and various aerospace and defense prime contractors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
L3Harris and Skydagger Sign MOU for Counter-Drone Collaboration
- MOU Signing: L3Harris and Skydagger have signed a memorandum of understanding to integrate Skydagger's drone interceptor technology with L3Harris' Vampire system, aiming to enhance counter-drone capabilities to meet increasing military demands.
- Technology Integration Exploration: The agreement will explore the development of drone-on-drone interception capabilities on the Vampire platform, with any new interceptor drones to be manufactured in the U.S. for allied military customers, thereby strengthening operational capabilities.
- Addressing Drone Threats: This collaboration is intended to accelerate the deployment of new technologies to support evolving counter-unmanned systems missions, as L3Harris' Vampire system can adapt to various operational requirements by incorporating both kinetic and non-kinetic counter-drone effectors.
- Growing Market Demand: As military forces seek lower-cost counter-drone solutions, integrating interceptor drones into existing systems will provide additional options for defeating unmanned threats, with L3Harris already ramping up production of the Vampire system in Huntsville, Alabama, to meet demand from the U.S. and allied nations.
See More
Driftwood Capital's Strategic Investments in Florida's Space Economy
- Positive Market Outlook: Carlos Rodriguez, executive chairman of Driftwood Capital, has invested in Brevard County, Florida, believing in the potential of the private space industry despite limited demand after the shuttle program's cancellation in 2011, indicating a bright future ahead.
- Major Investment Project: Driftwood is constructing the $420 million Westin Cocoa Beach Resort & Spa, set to open in 2025, which will control about 11% of hotel inventory and 62% of beachfront inventory in the region, significantly enhancing market share.
- Strategic Expansion: Alongside the Westin, Driftwood has also invested in the Element and Crowne Plaza hotels in Melbourne, further solidifying its hotel business in Florida to meet the growing demands of the space industry.
- Industry Trend Insights: Rodriguez sees new opportunities in real estate investment driven by the establishment of the U.S. Space Force and rapid developments in the space sector, particularly in catering to the needs of aerospace companies, highlighting significant future investment potential.
See More
L3Harris Plans Axyv IPO, Targeting $2 Billion
- IPO Announcement: L3Harris has selected JPMorgan Chase and Morgan Stanley to lead the initial public offering (IPO) of its missile systems business, Axyv, aiming to raise up to $2 billion as soon as next month, reflecting strong confidence in the capital markets.
- Defense Investment: This IPO follows a $1 billion investment from the U.S. Department of Defense, structured as convertible preferred securities that will convert into common stock post-IPO, further bolstering investor confidence in Axyv's prospects.
- Market Demand: The offering comes amid surging demand for solid rocket motors and related propulsion systems as the U.S. and allies replenish stockpiles and expand missile production, positioning Axyv as one of the largest defense IPOs in recent years and attracting significant investor interest.
- Strategic Control: L3Harris intends to retain a controlling stake in Axyv post-IPO, with proceeds expected to support the expansion and modernization of solid rocket motor manufacturing facilities, aligning with the Pentagon's strategic goal to enhance domestic missile production capacity.
See More
L3Harris to Launch Augmented Reality Upgrade for Night Vision Goggles
- Augmented Reality Upgrade: L3Harris is set to introduce an augmented reality upgrade for its BNVD-Fused night vision goggles, enabling soldiers to receive battlefield data, drone video feeds, and navigation information directly through their eyewear, thereby enhancing battlefield information acquisition efficiency.
- Technology Integration: This upgrade will add full-color digital overlays to existing systems without requiring users to replace their current battery packs, which is expected to enhance soldiers' operational capabilities in complex environments and aligns with modern military demands for integrated devices.
- Growing Market Demand: Since the introduction of its first binocular fused goggle in 2008, L3Harris has delivered over 30,000 fused night vision systems, demonstrating its production capacity and market position in meeting allied military needs.
- Strategic Transformation Opportunities: This new capability not only expands hardware sales into software upgrades, networking modules, and long-term sustainment contracts but also reflects the military's increasing pursuit of digitally connected soldier programs, potentially generating new revenue streams for the company.
See More
Qualcomm Targets AI Market with Tenstorrent Acquisition
- Acquisition Plans: Qualcomm is in talks to acquire AI chip startup Tenstorrent for an estimated $8 billion to $10 billion, aiming to reduce dependence on the cyclical handset market and expand into emerging sectors like data center processors and autonomous vehicle chips.
- Technological Innovation: CEO Cristiano Amon revealed that the company is working on over 40 new AI device designs, expressing particular optimism about the growth potential of smart glasses, which could significantly enhance Qualcomm's market share in the rapidly evolving AI landscape.
- Market Reaction: Following the acquisition news, Qualcomm's stock rose approximately 4% in pre-market trading, indicating a positive investor response to the company's strategic shift and reflecting confidence in its future growth potential.
- Industry Trends: As AI applications continue to expand, Qualcomm's acquisition strategy aligns with industry trends and could provide long-term revenue growth opportunities, further solidifying its leadership position in the semiconductor sector.
See More
SpaceX IPO Sparks Focus on Defense-Space Convergence
- Successful SpaceX IPO: SpaceX completed its IPO at $135 per share, raising $75 billion and achieving a market cap of nearly $1.8 trillion, marking a significant breakthrough in space technology and drawing investor attention to the convergence of aerospace and defense.
- Defense-Space Convergence: Modern military systems increasingly rely on low-Earth orbit satellite constellations and advanced RF components, driving innovation in missile defense, reconnaissance, and battlefield communications, showcasing deep integration between the defense industry and aerospace technology, creating new investment opportunities.
- Rising Demand for RF Semiconductors: Sivers Semiconductors received an $8.2 million production order, indicating accelerating demand for multi-orbit satellite communications, particularly as defense users increasingly require always-on connectivity, further propelling technological advancements in the industry.
- Expansion by Major Defense Contractors: L3Harris Technologies is expanding missile systems manufacturing capacity, with factory modernization closely tied to homeland defense interceptor production speed objectives, demonstrating the defense industry's flexibility and adaptability in addressing new challenges.
See More
L3Harris and Skydagger Sign MOU for Counter-Drone Collaboration
- MOU Signing: L3Harris and Skydagger have signed a memorandum of understanding to integrate Skydagger's drone interceptor technology with L3Harris' Vampire system, aiming to enhance counter-drone capabilities to meet increasing military demands.
- Technology Integration Exploration: The agreement will explore the development of drone-on-drone interception capabilities on the Vampire platform, with any new interceptor drones to be manufactured in the U.S. for allied military customers, thereby strengthening operational capabilities.
- Addressing Drone Threats: This collaboration is intended to accelerate the deployment of new technologies to support evolving counter-unmanned systems missions, as L3Harris' Vampire system can adapt to various operational requirements by incorporating both kinetic and non-kinetic counter-drone effectors.
- Growing Market Demand: As military forces seek lower-cost counter-drone solutions, integrating interceptor drones into existing systems will provide additional options for defeating unmanned threats, with L3Harris already ramping up production of the Vampire system in Huntsville, Alabama, to meet demand from the U.S. and allied nations.
See More
Driftwood Capital's Strategic Investments in Florida's Space Economy
- Positive Market Outlook: Carlos Rodriguez, executive chairman of Driftwood Capital, has invested in Brevard County, Florida, believing in the potential of the private space industry despite limited demand after the shuttle program's cancellation in 2011, indicating a bright future ahead.
- Major Investment Project: Driftwood is constructing the $420 million Westin Cocoa Beach Resort & Spa, set to open in 2025, which will control about 11% of hotel inventory and 62% of beachfront inventory in the region, significantly enhancing market share.
- Strategic Expansion: Alongside the Westin, Driftwood has also invested in the Element and Crowne Plaza hotels in Melbourne, further solidifying its hotel business in Florida to meet the growing demands of the space industry.
- Industry Trend Insights: Rodriguez sees new opportunities in real estate investment driven by the establishment of the U.S. Space Force and rapid developments in the space sector, particularly in catering to the needs of aerospace companies, highlighting significant future investment potential.
See More
L3Harris Plans Axyv IPO, Targeting $2 Billion
- IPO Announcement: L3Harris has selected JPMorgan Chase and Morgan Stanley to lead the initial public offering (IPO) of its missile systems business, Axyv, aiming to raise up to $2 billion as soon as next month, reflecting strong confidence in the capital markets.
- Defense Investment: This IPO follows a $1 billion investment from the U.S. Department of Defense, structured as convertible preferred securities that will convert into common stock post-IPO, further bolstering investor confidence in Axyv's prospects.
- Market Demand: The offering comes amid surging demand for solid rocket motors and related propulsion systems as the U.S. and allies replenish stockpiles and expand missile production, positioning Axyv as one of the largest defense IPOs in recent years and attracting significant investor interest.
- Strategic Control: L3Harris intends to retain a controlling stake in Axyv post-IPO, with proceeds expected to support the expansion and modernization of solid rocket motor manufacturing facilities, aligning with the Pentagon's strategic goal to enhance domestic missile production capacity.
See More
L3Harris to Launch Augmented Reality Upgrade for Night Vision Goggles
- Augmented Reality Upgrade: L3Harris is set to introduce an augmented reality upgrade for its BNVD-Fused night vision goggles, enabling soldiers to receive battlefield data, drone video feeds, and navigation information directly through their eyewear, thereby enhancing battlefield information acquisition efficiency.
- Technology Integration: This upgrade will add full-color digital overlays to existing systems without requiring users to replace their current battery packs, which is expected to enhance soldiers' operational capabilities in complex environments and aligns with modern military demands for integrated devices.
- Growing Market Demand: Since the introduction of its first binocular fused goggle in 2008, L3Harris has delivered over 30,000 fused night vision systems, demonstrating its production capacity and market position in meeting allied military needs.
- Strategic Transformation Opportunities: This new capability not only expands hardware sales into software upgrades, networking modules, and long-term sustainment contracts but also reflects the military's increasing pursuit of digitally connected soldier programs, potentially generating new revenue streams for the company.
See More
Qualcomm Targets AI Market with Tenstorrent Acquisition
- Acquisition Plans: Qualcomm is in talks to acquire AI chip startup Tenstorrent for an estimated $8 billion to $10 billion, aiming to reduce dependence on the cyclical handset market and expand into emerging sectors like data center processors and autonomous vehicle chips.
- Technological Innovation: CEO Cristiano Amon revealed that the company is working on over 40 new AI device designs, expressing particular optimism about the growth potential of smart glasses, which could significantly enhance Qualcomm's market share in the rapidly evolving AI landscape.
- Market Reaction: Following the acquisition news, Qualcomm's stock rose approximately 4% in pre-market trading, indicating a positive investor response to the company's strategic shift and reflecting confidence in its future growth potential.
- Industry Trends: As AI applications continue to expand, Qualcomm's acquisition strategy aligns with industry trends and could provide long-term revenue growth opportunities, further solidifying its leadership position in the semiconductor sector.
See More
SpaceX IPO Sparks Focus on Defense-Space Convergence
- Successful SpaceX IPO: SpaceX completed its IPO at $135 per share, raising $75 billion and achieving a market cap of nearly $1.8 trillion, marking a significant breakthrough in space technology and drawing investor attention to the convergence of aerospace and defense.
- Defense-Space Convergence: Modern military systems increasingly rely on low-Earth orbit satellite constellations and advanced RF components, driving innovation in missile defense, reconnaissance, and battlefield communications, showcasing deep integration between the defense industry and aerospace technology, creating new investment opportunities.
- Rising Demand for RF Semiconductors: Sivers Semiconductors received an $8.2 million production order, indicating accelerating demand for multi-orbit satellite communications, particularly as defense users increasingly require always-on connectivity, further propelling technological advancements in the industry.
- Expansion by Major Defense Contractors: L3Harris Technologies is expanding missile systems manufacturing capacity, with factory modernization closely tied to homeland defense interceptor production speed objectives, demonstrating the defense industry's flexibility and adaptability in addressing new challenges.
See More
