Elbit Systems has demonstrated consistent and wide earnings outperformance across four consecutive quarters, averaging nearly 20% above consensus, with strong earnings growth—but the stock trades at a forward earnings multiple of 45.1x and converts only 16% of reported net income into free cash flow, two constraints that leave the current valuation highly dependent on sustained flawless execution.
Thesis pillars
- Exceptional Earnings Beat Streak↑Improving
- Premium Valuation Thin Asymmetry↑Improving
- Poor Free Cash Conversion→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026· older than 90 days
Elbit Systems Ltd. (ESLT) Stock Analysis
Catalyst-Driven edge
Industrials · Aerospace & Defense
Hold if already holding. Not a fresh buy at $756.62, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0).
Elbit Systems Ltd., together with its subsidiaries, develops and supplies defense and homeland security arenas products and services in Israel, North America, Europe, the Asia-Pacific, Latin America, and internationally. The company operates through five segments: Aerospace; C4I... Read more
Hold if already holding. Not a fresh buy at $756.62, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0). Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +1 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 5.3/10, moderate confidence.
Passes 6/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent developments
No fresh coverage since Aug 12, 2026
Recent Developments — Elbit Systems Ltd.
Latest news
- NEWS Elbit Systems: Record Backlog Makes The Pullback A Buy (NASDAQ:ESLT) - Seeking Alpha — Seeking Alpha Aug 12, 2026 positive
- NEWS Elbit Systems (TASE:ESLT) Stock Looks Cheap On Earnings But Pricey On Broader Value - Yahoo Finance — Yahoo Finance Aug 12, 2026 neutral
- NEWS Elbit Systems (TASE:ESLT) Stock Looks Cheap On Earnings But Pricey On Broader Value - finance.yahoo.com — finance.yahoo.com Aug 12, 2026 neutral
- NEWS Elbit Systems Ltd (ESLT) Shares Fall 8.3% -- GF Value Says Still Overvalued - GuruFocus — GuruFocus Aug 11, 2026 negative
- NEWS Elbit Systems Ltd Stock (ESLT) Moved Down by 9.32% on Aug 11: Drivers Behind the Movement - TradingKey — TradingKey Aug 11, 2026 negative
Latest item Aug 12, 2026 · Generated 2026-11-04T11:59:35Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
1 floor-breaker
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $756.62, but acceptable to hold if already in. Reasons: Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0). Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +1 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Analyst target $697.89 reached (−7.8%), stop $704.16 (−7.5%), A.R:R -0.6:1. Score 5.3/10, moderate confidence.
Analyst target $697.89 reached (−7.8% from $756.62); no take-profit level is published. Analyst target $697.89 reached (−7.8%), stop $704.16 (−7.5%), A.R:R -0.6:1. Stop-loss: $704.16.
Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.0); Sector modifier (Industrials): -0.7.
Elbit Systems Ltd. trades at a P/E of 56.9 (forward 40.7). TrendMatrix value score: 3.9/10. Verdict: Hold.
8 analysts rate ESLT, with a consensus score of 4.1/5. 6 analysts publish price targets averaging $802.
What does Elbit Systems Ltd. do?Elbit Systems Ltd., together with its subsidiaries, develops and supplies defense and homeland security arenas products...
Elbit Systems Ltd., together with its subsidiaries, develops and supplies defense and homeland security arenas products and services in Israel, North America, Europe, the Asia-Pacific, Latin America, and internationally. The company operates through five segments: Aerospace; C4I and Cyber; Intelligence, Surveillance, Target Acquisition and Reconnaissance and Electronic Warfare; Land; and Elbit Systems of America. It offers airborne platforms, unmanned aerial solutions, precision guided munition sensors, aerostructures, training and simulator systems, flight academy solutions, and commercial aviation systems; and command, control, communications, computer, intelligence, surveillance and reconnaissance systems, as well as data links and radio communication systems and equipment, cyber intelligence solutions, and autonomous and homeland security solutions. The company also provides various electro-optic laser solutions and countermeasure systems and products, naval combat management and sonar systems, and electronic warfare, signal Intelligence, and radar systems; indirect fire, turrets and weapons, ammunition and munition, and active protection systems; and products, system solutions, and support services to defense, homeland security, law enforcement, commercial aviation, and medical instrumentation markets. It serves various governments and companies. The company was incorporated in 1966 and is based in Haifa, Israel.