L3HARRIS Technologies (NYSE: LHX) profits and shareholder returns have been down in the past three years, but the share increases by 3.9% last week

As an investor, it is worth ensuring that your overall portfolio exceeds the market average. However, it is practically certain that you sometimes buy stocks that leave the average market yield. We regret that we have to report this in the long term L3Harris Technologies, Inc. (NYSE: LHX) The shareholders have had this experience, with the share price has dropped by 20% in three years, compared to a market return of around 36%. In addition, it has dropped by 18% in about a quarter. This is not a lot of fun for the owners. We find that the company recently reported the results. And the market is hardly pleased. You can check the latest numbers in our company report.

Although last week the shareholders have been more calming, they have been in the Red in the past three years.

See our latest analysis for L3Harris Technologies

To paraphrase Benjamin Graham: In the short term, the market is an election machine, but in the long run it is a due. An incorrect but appropriate way to assess how the mood has changed in a company is to compare the result per share (EPS) with the share price.

In the three years in which the share price fell, the winning of L3Harris Technologies per share (EPS) fell by 4.6%each year. This reduction of the EPS is slower than the annual reduction of the share price by 7%. So it seems that the market has been too safe in the past.

You can see below how EPS has changed over time (discover the exact values ​​by clicking on the picture).

We consider it positive that insiders made considerable purchases last year. Nevertheless, most people consider profit and sales growth trends as a more sensible guide for business. It could be worth taking our attention to ours free Report on profits, income and cash flow from L3Harris Technologies.

Investors should not only measure the share return, but also take into account the entire shareholder return (TSR). The TSR contains the value of spin-offs or reduced capital increases as well as all dividends based on the assumption that the dividends are reinvested. It is fair to say that the TSR offers a more complete picture for stocks that pay a dividend. We find that the TSR for L3Harris technologies in the past 3 years -15%, which is better than the share course mentioned above. The dividends paid by the company have increased them in this way in total Shareholder return.

Investors in L3Harris technologies had a hard year with a total loss of 3.2% (including dividends) compared to a market profit of around 19%. Even the share prices for good stocks sometimes drop, but we want to recognize improvements in the basic metrics of a company before we are too interested. Long -term investors would not be so upset because they would have done 1.1%every year. If the basic data continues to indicate long -term sustainable growth, the current sale could be a chance that is worth considering. I find it very interesting to consider the share price in the long term as a proxy for business performance. But to really gain insights, we also have to take other information into account. For example, we discovered 2 warning signs for L3Harris technologies You should be aware of this before you invest here.

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