As part of our Investing 2026 Forecast Series back at the start of the year, we introduced a brand-new storyline: The Space Economy. And we predicted 2026 would be the year this whole new market reached “critical mass.” I like L3Harris Technologies Inc. (LHX), says Bill Patalon, chief stock picker at Stock Picker’s Corner.
Two major stories in the last few days are proving we’re on the right track…
No. 1: Last Thursday, Elon Musk’s spaceflight venture SpaceX reportedly boosted the valuation of its looming IPO to $2 trillion. That’s right, we’re talking about “trillion” — with a “T” — and a record for an initial public offering. So, we’re looking at a newly public company that could be worth more than the economy of Australia.
No. 2: Last Wednesday, the four-person Artemis II crew lifted off from NASA’s Kennedy Space Center in Florida — the start of a 10-day journey around the moon and the first crewed mission outside of low-Earth orbit (LEO) since 1972.
L3Harris Technologies Inc. (LHX)
Other stories are simmering, too — developments I’m sure we’ll be talking more about here. But I have to ‘fess up: I’m stoked as can be about this — for a bunch of reasons.
As for LHX, I actually covered Harris Corp. in the 1990s. The company is selling its propulsion unit to a private-equity firm – a strategic move that will leave L3’s “RemainCo” better focused. It will be able to cash in on the ramped-up defense spending of the New Cold War, as well as the innovative investments of the new Space Race.
Those planned transactions — and the boost L3 will get as a result — prompted us to add it to our Special Situation Portfolio.
Recommended Action: Buy LHX.
