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While equity markets have staged a strong rebound from the April bottom, earnings estimates look to have just begun forming a bottom as the Q2 2025 earnings season unfolds. Meanwhile, L3Harris Technologies Inc. (LHX) delivered a triple play (beat, beat, raise) this quarter, observes Nancy Tengler, CIO at Laffer Tengler Investments.

The question we ask ourselves every day is “What are we missing? Where is the puck going?” because that is where we want to be focused. Though we remain bullish on technology and the AI revolution, we are also always scanning the horizon for new opportunities.

In our previous bulletin, we highlighted the equity market price and fundamental resilience over the past 12 months amid significant structural changes, including shifts in monetary policy, political regimes, foreign trade policies, and a technological revolution.

Shifting our focus to the latter half of 2025 and where equity prices could go, a key question emerges as to the trajectory of fundamentals: Have the downward revisions in S&P 500 EPS estimates reached a bottom, signaling the onset of stabilization, or even an upward inflection?

L3Harris Technologies Inc. (LHX) Chart

At L3Harris Technologies, revenues were up 2% year-on-year (+6% organically), driven by higher volumes, new program ramps, and increased international demand. This looks to be the inflection point we’ve been waiting for.

The company is well ahead of its cost savings goals. There is strong demand across the portfolio. And management confirmed that negative Estimates At Completion (EACs) are through. Moreover, with increased international defense spending, the company is finding that it is replacing many indigenous players – a trend we expect will continue.

My recommended action would be to consider purchasing shares of L3Harris Technologies stock.

About the Author

Nancy Tengler is the chief executive officer and chief investment officer of Laffer Tengler Investments. She is responsible for active equity management research and portfolio management, as well as leading the firm. Ms. Tengler is a committed advocate of financial literacy for women as the leader of Laffer Tengler’s Women & Wealth initiative, which encourages and informs women on how to take charge of their own financial and investment planning. The second edition of her book, The Women’s Guide to Successful Investing, was published in September 2023.

As one of the most dynamic women in the investment management industry today, she is a sought-after TV and print financial commentator on local and national media outlets. Prior to joining Laffer Tengler, Ms. Tengler had a distinguished investment management career in several senior leadership roles. Most recently, she served as chief investment officer at Heartland Financial where she was also a director of Arizona Bank & Trust.

Ms. Tengler has also served as president, chief executive officer, and chief investment officer of Fremont Investment Advisors in San Francisco. Before that, she founded Global Alliance Value Investors. She also worked for UBS Asset Management as head of the Value Equities Group and with Spare, Tengler, Kaplan, and Bischel, Ltd., as president and senior portfolio manager. 

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