Why L3Harris Stock Inched Higher on Wednesday

Defense stock L3Harris Technologies (NYSE: LHX) is getting some positive attention on Wall Street today, after President Trump announced plans yesterday to spend $175 billion to build a Golden Dome missile shield over the United States.

Shares of the defense contractor surged nearly 5% at the open, and remain up 1.3% as of 10:15 a.m. ET.

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What is the Golden Dome?

"Once fully constructed, the Golden Dome will be capable of intercepting missiles even if they are launched from other sides of the world," promised the president, while predicting the missile defense system will be operational within three years, and within his current term of office.

"We have officially selected an architecture for this state-of-the-art system," added the president, and allocated $25 billion to begin construction within the new "Big, Beautiful Bill" -- the president's budget proposal for fiscal year 2026.

Why Golden Dome could be good news for L3Harris stock

Commenting on Trump's announcement, J.P. Morgan analyst Seth Seifman observed that "LHX got a shout-out" at the press conference, although "many [other] contractors [will also] participate" in it. Northrop Grumman, Lockheed Martin, Palantir, and RTX Corp were all named as potential beneficiaries of Golden Dome, along with private space and defense companies SpaceX and Anduril.

The analyst noted that L3Harris recently completed a $125 million expansion of its satellite manufacturing facility in Fort Wayne, Indiana, and has been a repeat winner of contracts to build tracking layer satellites for the Space Force's Proliferated Warfighter Space Architecture missile detection and tracking system, which is presumed to be part of Golden Dome.

"Another avenue for LHX to participate is with rocket motors for interceptors," added J.P., giving L3Harris yet another route to profit under Trump's Golden Dome.

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends L3Harris Technologies and Palantir Technologies. The Motley Fool recommends Lockheed Martin and RTX. The Motley Fool has a disclosure policy.