L3Harris Technologies (LHX)

The market is missing the classified work story - 28% of revenue, sole-source $600M contract with billions in follow-on potential, and pure margin expansion opportunity. Everyone's focused on the missile IPO theatrics, but the real money is in the boring classified programs. The obvious headline is 15% organic growth, but strip out the working day benefit and you're at 13%, which is still solid but sets up a tough Q2 comp. The binding constraint is that the $25 billion MAC 'orders' everyone thinks they have are still being negotiated with contracts not expected until year-end. As Kubasik said, 'We are in negotiations...targeting the end of the calendar year.' My view changes if they sign those framework agreements ahead of schedule or if the classified business starts throwing off measurably higher margins.