Elbit Systems Ltd. (ESLT) - Stock Analysis
Last updated: Mar 15, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Elbit has reported record Q4/FY results and a $28.1B backlog with multiple new defense contracts worth hundreds of millions of dollars, driving a ~36% share surge over 21 days and a breakout to new highs. Defenseâsector tailwinds plus strong contract momentum make this a highâpotential shortâterm momentum trade despite rich valuation.
Loading chart data...
AI Analyst Overview
Loading chart data...
Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Stable margins ⢠High leverage ⢠Rich valuation ESLT delivers durable profitability and meaningful cash generation with strong tangible equity and steady dividends, but high leverage, large deferred revenue/working-capital burdens, declining cash and rich valuation multiples materially temper the investment case.
Price Behavior
Key Price Behavior Insights: ⢠Strong uptrend ⢠Elevated volatility ⢠Price above average Support Level: $700â$798.50 Resistance Level: $885â$936 Stock is in a strong shortâterm uptrend (â28% gain over the last month) trading about 9% above the lastâmonth average, but elevated volatility and the rapid rally raise the risk of sharp meanâreversion if key support near the lastâmonth average and prior consolidation breaks.
Sentiment & News
Key News Insights: ⢠Analyst upgrades ⢠Major contract wins ⢠Defense demand surge Elbit Systems sees upgraded Buy ratings and raised 2026 sales forecasts after sizeable February contract awards and conflict-driven defense demand, making the March earnings release a likely near-term catalyst.
AI Summary
Elbit has moved from a backlogâanchored defense stalwart to a momentumâpriced growth storyârecent large, shortâcycle wins and a bigger Israeli defense budget justify upside but the stock now prices nearâterm execution and cashâconversion perfection. Monitor quarterly revenue conversion from recent awards, margin sustainment from ERP/automation, and stabilizing cash/debt metrics closely because any slip will likely trigger sharp reversion given the >70â80x implied multiple.
Description
Elbit Systems Ltd. is an Israeli defense contractor that develops and supplies a broad range of airborne, land and naval platforms, sensors, weapons, communications and cyber systems for military, homeland security and commercial aviation customers. The company serves governments and industrial partners as both prime contractor and subcontractor and also provides training, support and integration services. Founded in 1966 and headquartered in Haifa, Elbit operates across the United States, Europe, Latin America, the AsiaâPacific region and other international markets.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Mar 18 | Mar 25 | ESLT | Elbit Systems Ltd. | Elbit has reported record Q4/FY results and a $28.1B backlog with multiple new defense contracts worth hundreds of millions of dollars, driving a ~36% share surge over 21 days and a breakout to new highs. Defenseâsector tailwinds plus strong contract momentum make this a highâpotential shortâterm momentum trade despite rich valuation. | Active | +0.0% |