Jim Cramer - Mad Money L3Harris Technologies LHX-N DON'T BUY Oct 01, 2021

Is seeing an amazing decline. LHX makes exactly the high tech that the government wants all its military to adopt. At 15x PE, it's too cheap.

Cheap at 14x PE 2024. A good defence contractor.

Another Trump-tech trade. Defense technology provider. From tactical radios to applications to hardware. Also involved in space and aerospace, and you'll find that LHX is the leader in ETFs that cover that sector. 12-month price target of $273. Buy a third here around $240, add in the mid-$220s, and again at the $215 level. Reports next week. Yield is 1.9%.

It is mainly (probably) Trump related. His 'Department Of Government Efficiency' is deisgned to cut costs and unnecessary spending in the government. This includes military spending and the money allocated towards contractors such as LHX. Whether this will actually a meaningful is unclear. We think LHX looks good however, and analysts have been bullish on margin expansion in future years.
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The defence department is a natural place to cut back when there's a threat of a shutdown of the federal government. Hence, the current weakness in this stock.

Defence shouldn't be working, given the pullback from Ukraine, but maybe we are building up as tensions rise with China. LHX offers defence and communications.