Latest news with #LDOS
Yahoo
2 days ago
- Business
- Yahoo
Is Leidos Holdings Stock Outperforming the Dow?
Valued at a market cap of $19.1 billion, Leidos Holdings, Inc. (LDOS) is a technology company serving government and commercial clients. The Reston, Virginia-based company provides solutions across defense, intelligence, civil, and health sectors, specializing in areas such as mission systems, cybersecurity, AI-powered analytics, cloud modernization, air traffic management, energy infrastructure, and biomedical research. Companies worth $10 billion or more are typically classified as 'large-cap stocks,' and LDOS fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the information technology services industry. The company's long-standing relationships with key U.S. federal agencies, including the Department of Defense, Homeland Security, and the FAA, provide strong revenue visibility through multi-year government contracts. Its specialty lies in delivering complex, integrated solutions that combine advanced technologies like AI, machine learning, cloud modernization, and data analytics with domain-specific expertise. 'It Has No Utility': Warren Buffett Doesn't Care How High Gold Goes, He Isn't a Buyer OpenAI CEO Sam Altman Says 'We Are Heading Towards a World Where AI Will Just Have Unbelievable Context on Your Life' Archer Aviation Is Betting Big on Its Fledgling Defense Business. Does That Make ACHR Stock a Buy Here? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. This tech company is currently trading 26.9% below its 52-week high of $202.90, reached on Nov. 12, 2024. LDOS has rallied 7% over the past three months, outpacing the Dow Jones Industrial Average's ($DOWI) 1.4% uptick during the same time frame. Moreover, on a YTD basis, shares of LDOS are up 3%, outperforming DOWI's marginal downtick. However, in the longer term, LDOS has gained 3.1% over the past 52 weeks, lagging behind DOWI's 8.6% rise over the same time frame. To confirm its recent bullish trend, LDOS has been trading above its 50-day moving average since early April, with slight fluctuations. However, it has remained below its 200-day moving average since mid-December, 2024, with some fluctuations. On May 6, Leidos Holdings' shares rose 4.6% following its better-than-expected Q1 earnings release. Due to increased demand across all customer segments, its revenue grew 6.8% year-over-year to $4.2 billion, exceeding Wall Street expectations by 4.2%. Moreover, solid margin expansion compared to the prior-year quarter led to a 29.7% growth in its adjusted EPS to $2.97. The bottom-line figure also surpassed the consensus estimates by a notable margin of 20.2%. The company's impressive performance was supported by higher volumes in managed health services programs, improved program execution, and effective cost management across operations. LDOS has lagged behind its rival, CACI International Inc (CACI), which gained 5.3% over the past 52 weeks and 12.5% on a YTD basis. Looking at LDOS' recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy' from the 15 analysts covering it, and the mean price target of $173.80 suggests a 17.2% premium to its current price levels. On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
4 days ago
- Business
- Business Insider
Leidos awarded $35M contract by DoD
Leidos (LDOS) will help accelerate decision making across the Department of Defense, or DoD, by modernizing the Defense Information Systems Agency, or DISA, tools that transfer critical data between classified and unclassified networks. Under a five-year, $35M award for the Cross-Domain Enterprise Services program, Leidos will integrate the design, engineering and operations of DISA's data-sharing platform to enable faster, more agile mission performance. The award is part of a Systems Engineering Technology and Innovation indefinite delivery/indefinite quantity contract. Confident Investing Starts Here:
Yahoo
5 days ago
- Business
- Yahoo
Is It Worth Investing in Leidos (LDOS) Based on Wall Street's Bullish Views?
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Let's take a look at what these Wall Street heavyweights have to say about Leidos (LDOS) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Leidos currently has an average brokerage recommendation (ABR) of 1.93, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 15 brokerage firms. An ABR of 1.93 approximates between Strong Buy and Buy. Of the 15 recommendations that derive the current ABR, eight are Strong Buy, representing 53.3% of all recommendations. Check price target & stock forecast for Leidos here>>> While the ABR calls for buying Leidos, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation. This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision. In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures. Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns. There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. Looking at the earnings estimate revisions for Leidos, the Zacks Consensus Estimate for the current year has increased 0.5% over the past month to $10.70. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Leidos. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for Leidos may serve as a useful guide for investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
11-06-2025
- Business
- Yahoo
Why Leidos (LDOS) is a Top Value Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics. Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks. Founded in 1969, Delaware-based Leidos Holdings, Inc. is a global science and technology leader that serves the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization; operations and logistics; sensors, collection and phenomenology; software development; and systems engineering. LDOS is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 13.6X for the current fiscal year compared to the Computers - IT Services industry's P/E of 19.6X. Additionally, LDOS has a PEG Ratio of 1.8 and a Price/Cash Flow ratio of 11.6X. Value investors should also note LDOS' Price/Sales ratio of 1.1X. Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.19 to $10.68 per share. LDOS has an average earnings surprise of 23.7%. With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding LDOS to their portfolios. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
02-06-2025
- Business
- Yahoo
Leidos Outperforms Market YTD: Is it the Right Time to Buy the Stock?
Leidos Holdings Inc. LDOS shares have rallied an impressive 3.1% in the year-to-date period, outperforming the S&P 500's return of 0.1%. The company, however, underperformed the Zacks Aerospace-Defense industry's growth of 17.5% and the broader Zacks Aerospace sector's appreciation of 18.6%. Image Source: Zacks Investment Research Other industry players, such as RTX Corp. RTX and Northrop Grumman Corp. NOC, also performed impressively, with their shares rising 17.9% and 3.3%, respectively, year to date. With Leidos Holdings riding high, individuals may rush to add the stock to their portfolio. However, before making any hasty decision, it would be prudent to take a look at the reasons behind the gain, the stock's growth prospects, as well as risks (if any) to investing in the same. This will help investors make a more insightful decision. Being a prominent aerospace-defense stock, with a diverse product portfolio ranging from cybersecurity technologies to health data analytics, Leidos Holdings enjoys steady order flows from varied sources. These orders culminate in a solid backlog count, which is indicative of the solid demand that LDOS' products enjoy across diverse industries. Notably, LDOS ended the first quarter of 2025 with a backlog of $46.30 billion, reflecting an improvement over the prior quarter's level of $43.55 billion. Such improved backlog count bolsters the company's future revenue generation prospects and, in turn, must have boosted investors' confidence in this stock's profitability, which was reflected in the form of the share price rise as mentioned above. The company's sturdy financial health is likely to have also compelled investors to stay invested in this stock. Leidos Holdings' cash and cash equivalents totaled $0.84 billion at the end of the first quarter of 2025, while its current debt totaled $0.12 billion. By doing a comparative analysis of these figures, we may safely conclude that the company holds a strong solvency position in the near term. Moreover, its current ratio of 1.54 as of April 4, 2025, being more than one, indicates that the company boasts sufficient capital to pay off its short-term debt obligations. The current macroeconomic and geopolitical environment is enhancing growth prospects for Leidos Holdings, supported by heightened global tensions and the U.S. administration's strong commitment to increased defense spending. In May 2025, a White House report confirmed President Trump's proposal to raise the defense budget by 13% to $1.01 trillion for fiscal 2026. A key feature of this proposal is substantial investment in the "Golden Dome"—a next-generation missile defense shield aimed at protecting the U.S. from adversarial threats. To this end, Leidos Holdings believes that it is well-positioned to play a critical role in the Golden Dome initiative, given its advanced air and missile defense capabilities, including its ongoing contribution to the defense of Guam. With a focus on cutting-edge defense solutions, LDOS is thus well-positioned for sustained long-term growth amid the aforementioned background. The Zacks Consensus Estimate for LDOS' long-term (three-to-five-year) earnings growth is pegged at 7.4%. A sneak peek at its near-term earnings and sales estimates mirrors a similar picture. The Zacks Consensus Estimate for 2025 and 2026 sales suggests an improvement of 2.7% and 3.2%, respectively, year over year. A similar improvement is suggested by the annual estimates for earnings as well. The Zacks Consensus Estimate for LDOS' 2025 and 2026 earnings per share has moved north 1.8% and 1%, respectively, over the past 60 days. The upward revision in earnings estimates indicates analysts' increasing confidence in the stock's earnings growth capabilities. Image Source: Zacks Investment Research Image Source: Zacks Investment Research Despite strong growth prospects, Leidos Holdings faces some challenges that one should consider before investing in the stock. A major concern is the ongoing labor shortage in the aerospace-defense sector. According to the 2024 Aerospace Industries Association (AIA)-PwC Workforce Study, industry attrition remains high at 13%, well above the U.S. average of 3.8%, driven by retirements and turnover. This talent gap may lead to production delays and quality issues, affecting Leidos Holdings' ability to meet delivery timelines. Other industry players like NOC and RTX are facing this labor shortage crisis. Furthermore, the imposition of U.S. tariffs on major trading partners raises input costs and supply chain uncertainties. If such trade restrictions intensify, Leidos Holdings could face increased production expenses and material shortages, ultimately impacting its operational efficiency and profitability. In terms of valuation, LDOS' forward 12-month price-to-earnings (P/E) is 13.49X, a discount to its industry's average of 26.42X. This suggests that investors will be paying a lower price than the company's expected earnings growth compared to that of its industry. Image Source: Zacks Investment Research Its industry peers are also trading at a discount to the industry average. RTX is trading at a forward 12-month P/E of 21.71X, while Northrop is trading at 18.11X. To conclude, investors interested in LDOS may add this stock to their portfolio, considering its discounted valuation, long-term growth prospects, as well as upward revision in its earnings estimates. LDOS currently has a VGM Score of A, which is also a favorable indicator of strong performance. The company's Zacks Rank #2 (Buy) further supports our thesis. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
