Today we reveal to you a long term investment opportunity in the defense sector:
L3 HARRIS TECHNOLOGIES INC
While the valuations of lots of companies got beaten down for good reasons during this pandemic, this company and its sector in general are going to continue seeing incoming orders.
A pandemic may put the retail economy into lock down, but the balance of power on land, the sea and in the air must be kept.
Intelligence, surveillance, reconnaissance, air traffic management, space payloads, sensors and full-mission solutions are essential for any nation that seeks to project strength globally, such as the United States.
Historical annual growth rates of 19% on average make this a promising company to own. Moreover, its valuation seems justified by stable margins and a strong balance sheet.
A few words about the chart: we see a stable channel with continually confirmed upper and lower boundaries (red & green) with around 20% annual growth. During the last year, a strong resistance base has formed around 170$ (purple), which was confirmed multiple times since April 2018. The price bounced off to the upside on May 15th, which means we are now in a short term trend upwards, embedded within a macro upside trend in a yearly perspective - the best possible setup for a long term investment entry or swing trade.
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your DipDetector Team