Latest news with #LeidosHoldings
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a day ago
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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
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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
Yahoo
08-05-2025
- Business
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Leidos price target raised to $175 from $155 at Truist
Truist raised the firm's price target on Leidos (LDOS) to $175 from $155 and keeps a Buy rating on the shares after its Q1 earnings beat. DOGE pressures are beginning to abate as most companies report a minimal amount of lost revenue, the analyst tells investors in a research note. Leidos has also disclosed a 'very low in the 1% range' impact from the government efficiency initiatives to date, and the company's pending cyber acquisition is seen 'favorably', the firm adds. Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on LDOS: Disclaimer & DisclosureReport an Issue Leidos price target raised to $168 from $149 at UBS Leidos price target raised to $160 from $150 at RBC Capital Leidos Holdings Reports Strong Q1 2025 Earnings Leidos Q1 2025 Earnings Call Highlights Strategic Growth Leidos Holdings Stockholders Approve Key Amendments 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
Yahoo
08-05-2025
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Why Leidos Holdings Stock Is Up Today
Key Points Leidos beat top- and bottom-line estimates, helping to put fears about government cutbacks to rest. The second quarter looks slower than the first, which could create near-term turbulence, but the long-term bull thesis remains intact. 10 stocks we like better than Leidos › Leidos Holdings (NYSE: LDOS) reported better-than-expected quarterly results this morning, helping ease concerns that efforts by the task forced called the Department of Government Efficiency (DOGE) would eat into earnings. Investors cheered the results, sending Leidos shares up 4% around 2 p.m. ET. Image source: Getty Images. Strong results across the board Leidos is the largest pure-play "Beltway Bandit," a term given to the group of defense contractors focused on providing IT (information technology) and other services to defense and civil government agencies. The company earned $2.97 per share in the reported quarter on $4.25 billion in revenue, topping Wall Street's $2.50 per share on sales of $4.1 billion consensus estimate. The company posted 7% year-over-year revenue gains thanks to strength in all segments, fueled by higher demand for veteran medical exams, international military sales, and space sensors. The higher-than-expected medical business also led to more than a 100-basis-point beat on operating margin. "Our robust first-quarter results build on the momentum from 2024, demonstrating the team's ability to execute in a dynamic environment that demands agility and innovation," Leidos CEO Tom Bell said in a statement. The company also bought back about $500 million in shares in the quarter. Is Leidos a buy? The company's book-to-bill was a disappointment, with new awards coming in about half of the rate of sales in the quarter. But some of that is timing, and backing out to look at the data for the last 12 months shows a healthier 1.3x number. Leidos reiterated its guidance for the year, implying modest year-over-year revenue growth in 2025. The near-term outlook could be choppy, and Leidos could still fall victim to contracts deemed unessential and cut by DOGE, but the long-term outlook is unchanged. For investors looking for a slow and steady grower tied to the U.S. defense budget, Leidos deserves a spot on the radar. Should you invest $1,000 in Leidos right now? Before you buy stock in Leidos, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Leidos wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Yahoo
06-05-2025
- Business
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Leidos Holdings (NYSE:LDOS) Secures $205 Million Contract And Reaffirms 2025 Earnings Guidance
Leidos Holdings recently announced strong Q1 earnings, with sales and net income significantly higher than the previous year. Alongside reaffirming its revenue guidance for 2025, the company secured a substantial $205 million contract with the Defense Threat Reduction Agency to enhance IT systems, potentially strengthening its market position in the defense sector. These developments, coupled with the declaration of a $0.40 per share dividend, are key elements that could have influenced the company's 11% price increase over the past month. This upward momentum aligns with broader market trends, where earnings optimism has buoyed stock prices. We've spotted 1 possible red flag for Leidos Holdings you should be aware of. NYSE:LDOS Revenue & Expenses Breakdown as at May 2025 This technology could replace computers: discover the 22 stocks are working to make quantum computing a reality. The recent developments for Leidos Holdings, such as the secured $205 million Defense Threat Reduction Agency contract and reaffirmed revenue guidance, have reinforced the company's position in the defense sector. These factors, along with the declaration of a $0.40 per share dividend, likely contributed to the recent 11% increase in the stock's price. Over a five-year period ending now in May 2025, Leidos achieved a total return of 55.24%, indicating robust long-term performance. However, over the past year, the company underperformed the US Professional Services industry, which returned 6.9%. Leidos' strategic emphasis on IT modernization and increased privatization through its NorthStar 2030 initiative is projected to bolster future revenue and earnings growth. The new contracts and a strong backlog create a solid foundation for continued financial performance. Analysts forecast revenue growth of 3.2% per year and a rise in profit margins from 7.5% to 8.1% by 2028. This growth trajectory is supported by share repurchases, which enhance earnings per share and leverage the company's financial structure. The analyst consensus price target of US$167.47 represents an 11.9% increase from the current share price of approximately US$147.56, aligning with forward-looking earnings growth and margin improvements. Explore historical data to track Leidos Holdings' performance over time in our past results report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
