LHX

AIVL · Weight decrease · 3d

LHX presents with a PER of 30.33 and PBR of 2.9, coupled with negative revenue growth of -20.84% and an 8.87% ROE. For AIVL, which aims to identify genuine value within a US value-factor pool using fundamentals like margins and return on capital alongside valuation metrics, these figures warrant scrutiny. The detected pattern of consecutive weight decreases in AIVL's holding of LHX, specifically from 1.8774% on July 15 to 1.8329% by July 17, aligns with the stock's recent price action, including a -22.0% 90-day return. This divestment suggests AIVL's AI, tasked with distinguishing genuine value from value traps, has likely re-scored LHX downwards as its current price of $282.01, even at 75% of its 52-week high, reflects a lack of attractive fundamental momentum. The AI's model appears to be reacting to the deteriorating revenue growth and recent price declines, potentially flagging the stock as less aligned with its criteria for true value.

weight 1.902% → 1.833% (-0.069 pp)·stock down 9.2% in the 30 days before

Jul 17·entry $282.01·now $280.55

AIVL · Weight decrease · 2d

LHX’s current PER of 30.33, combined with negative revenue growth of -20.84% and an ROE of 8.87%, presents a complex picture for AIVL’s strategy. This P/E ratio, well above its P/B of 2.9, suggests a valuation that the WisdomTree AI, tasked with identifying genuine value within its US value-factor pool, might scrutinize heavily given the fundamental declines. The pattern of consecutive weight decreases in LHX by AIVL, observed from July 14th to 16th, coincides with the stock's recent price depreciation, including a -9.0% 30-day return and -22.0% 90-day return. Despite LHX trading at 75% of its 52-week high, the AI’s continuous re-evaluation of fundamentals and valuation metrics indicates that the current price level of $282.01, alongside the deteriorating revenue, still fails to meet its criteria for genuine value, prompting reduced allocation.

weight 1.902% → 1.836% (-0.066 pp)·stock down 6.5% in the 30 days before

Jul 16·entry $284.43·now $280.55

AIVL · Weight decrease · 2d

AIVL’s AI-driven methodology, focused on identifying genuine value within a US value pool by assessing fundamentals and valuation, likely flagged L3Harris Technologies (LHX) as less compelling. The AI's mandate to distinguish genuine value from value traps would be sensitive to indicators like LHX's negative 20.84% revenue growth, which suggests underlying business challenges rather than a temporary market undervaluation. Despite the stock trading at 78% of its 52-week high, the AI’s model may view the price-to-earnings ratio of 32.44 as unappealing given the fundamental decline, prompting a re-evaluation during the ETF's periodic rebalancing schedule. This reassessment would lead to a reduced conviction score for LHX, consequently decreasing its weight within the fund's approximately 100 US value stock holdings.

weight 1.983% → 1.924% (-0.060 pp)·stock down 4.6% in the 30 days before

Jul 7·entry $295.40·now $280.55

AIVL · Weight decrease · 2d

The weight of LHX in AIVL has undergone a series of stepped reductions, with the overall trend showing a persistent decrease from 2.1237% to 1.9057% over a two-week period, punctuated by minor adjustments. This pattern suggests AIVL’s AI, which scores stocks on fundamentals and valuation to avoid value traps, systematically re-assessed LHX's high P/E ratio of 31.05 and the substantial revenue decline of -20.84%. Despite the stock trading at $291.25, 77% off its 52-week high, and experiencing a recent -17.3% 90-day return, the AI likely perceived these declines as reflecting deteriorating conditions rather than creating a deeper value opportunity given the underlying high P/E and negative growth. The incremental nature of the weight changes further aligns with AIVL’s strategy of periodic rebalancing, allowing the AI to adjust exposure as its proprietary scores indicate a consistent divergence from its genuine value criteria.

weight 1.980% → 1.906% (-0.074 pp)·stock down 8.0% in the 30 days before

Jun 25·entry $288.52·now $280.55

AIVL · Weight decrease · 2d

The AI's purpose for AIVL is to discern genuine value from potential value traps within its portfolio of roughly 100 US value stocks. In the case of L3Harris Technologies, the consecutive weight decrease observed reflects a re-evaluation by the AI system during its periodic rebalancing. This shift likely stems from LHX's financial profile, notably its PER of 31.52 coupled with a significant -20.84% revenue growth. While the stock has seen a -16.0% return over 90 days, indicating a price decline, the AI's model probably views these fundamental weaknesses as justifying the price drop rather than presenting a compelling value opportunity, thus driving down its allocation to 1.9055%.

weight 2.074% → 1.905% (-0.168 pp)·stock down 7.5% in the 30 days before

Jun 22·entry $285.83·now $280.55

AIVL · Weight decrease · 4d

The AI ETF likely reduced LHX's weight due to its alarming -20.84% revenue growth, signaling deep fundamental weakness despite its earlier increased allocation. This indicates the AI's algorithm prioritizes sustained financial health, systematically divesting from underperforming assets. Retail investors should likewise critically evaluate companies exhibiting significant revenue contraction, as this often precedes further stock weakness and indicates fundamental business challenges.

weight 2.231% → 2.084% (-0.146 pp)·stock down 14.6% in the 30 days before

May 6·entry $302.20·now $280.55

AIVL · Weight decrease · 3d

The AI-managed ETF likely initiated a consecutive weight decrease for LHX due to its substantial -20.84% revenue contraction, which renders its P/E of 32.55 unsustainable in the algorithm's view. This consistent selling signals the AI is de-risking from a stock exhibiting deteriorating financial fundamentals. For retail investors, this action highlights the importance of scrutinizing revenue growth, especially for companies with high valuations, and suggests heeding sophisticated algorithms' signals about underlying corporate weaknesses.

weight 2.231% → 2.101% (-0.130 pp)·stock down 15.6% in the 30 days before

May 5·entry $302.65·now $280.55

AIVL · Weight decrease · 2d

The AI ETF likely initiated the consecutive weight decrease in LHX due to its weak fundamentals, specifically the significant negative revenue growth of -20.84% combined with a relatively high PER of 33.28. This suggests the AI identified a deteriorating financial outlook and potential overvaluation, prompting a reduction in exposure after an initial larger allocation. For retail investors, this pattern underscores the importance of scrutinizing core financial metrics like revenue growth and valuation multiples, as even AI algorithms quickly react to signs of underlying business weakness. Avoid simply chasing recent gains; instead, align investments with companies demonstrating solid fundamental health.

weight 2.231% → 2.162% (-0.069 pp)·stock down 13.3% in the 30 days before

May 4·entry $308.62·now $280.55

PQUS · Exit · 1d

The AI ETF likely removed LHX due to its alarming negative revenue growth of -20.84% combined with a high P/E ratio of 32.23, suggesting an overvalued stock with deteriorating fundamentals. A practical takeaway for retail investors is to be extremely wary of companies exhibiting significant revenue decline, especially when trading at high valuations, as this can signal a poor long-term investment.

weight 0.020% → 0 (exited)·stock down 16.3% in the 30 days before

May 10·entry $302.35·now $280.55