Stock Price & Analysis

ESLT stock has shown strong momentum recently, rising 14.80% last week, but its high RSI suggests overbought conditions. Consider holding or selling as the stock may be due for a pullback.

ESLT stock is predicted to reach $367 in 2025, driven by strong defense sector momentum and positive technical indicators. The stock shows bullish MACD signals but may face resistance near current levels.

The S1 support level for ESLT Stock is $334.21 ,The R1 resistant level for ESLT Stock is $365.98.

As of the end of day on 2025-03-17, the price of ESLT Stock was $359.13.

The market cap of ESLT is $16.4B.

Analysis and Insights

To determine whether Elbit Systems Ltd (ESLT) is overvalued, we analyze its valuation metrics, financial performance, and market sentiment.

Valuation Metrics:

ESLT's current valuation metrics suggest it may be overvalued compared to industry averages:

• P/E Ratio: ESLT's price-to-earnings ratio is approximately 34.07, significantly higher than the industry average of 20-25.
• EV/EBITDA: The enterprise value-to-EBITDA ratio is 17.11, indicating a premium valuation.
• P/S Ratio: The price-to-sales ratio is 3.11, above the industry average of 2-3.
• P/B Ratio: The price-to-book ratio is 7.84, significantly higher than the industry average of 3-5.

Financial Performance:

ESLT has shown consistent revenue growth, with Q3 2024 revenue reaching $1,717.47 million, up from $1,556.95 million in Q1 2024. Net income has also grown steadily, with Q3 2024 net income of $79.06 million, up from $73.67 million in Q1 2024. The company maintains a healthy gross margin of 24.03% and an ROE of 8.83%.

Market Sentiment and Analyst Ratings:

Recent news indicates ESLT's stock rose 14.8% last week, driven by positive sentiment in the defense sector. However, the stock has experienced volatility, with a pre-market drop of 2.33% and a regular market drop of 2.57%. Analyst sentiment is mixed, with some upgrades and downgrades, and the average target price is around $355, close to its current price.

Conclusion:

Based on the high valuation metrics, recent price surge, and mixed analyst sentiment, ESLT appears overvalued. Investors should exercise caution and consider waiting for a price correction or clearer growth signals before investing.

Elbit Systems Ltd. is an international technology company engaged in a range of programs across the world. The Company develops and supplies a portfolio of airborne, land and naval systems and products for defense, homeland security and commercial aviation applications. Its systems and products are installed on new platforms, and it also performs platform modernization programs. In addition, it provides a range of support services. The Company's activities include military aircraft and helicopter systems; helmet mounted systems; commercial aviation systems and aerostructures; unmanned aircraft and unmanned surface vessels; land vehicle systems; command, control, communications, computer and intelligence (C4I) systems; intelligence and cyber systems; electro-optic and countermeasures systems; electronic warfare and signal intelligence systems, and various commercial activities. It operates primarily in the defense and homeland security arenas.

ESLT stock is predicted to reach $500 by 2030, driven by strong demand in the defense sector and geopolitical tensions. The stock has shown resilience with an 8.7% gain recently, indicating positive momentum. Analysts expect continued growth in defense spending to support ESLT's long-term price appreciation.

ESLT has a total of 18984 employees.