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Are Investors Undervaluing Leidos (LDOS) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Leidos (LDOS - Free Report) is a stock many investors are watching right now. LDOS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.36, while its industry has an average P/E of 21.58. Over the past year, LDOS's Forward P/E has been as high as 16.49 and as low as 11.30, with a median of 13.58.
LDOS is also sporting a PEG ratio of 1.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LDOS's PEG compares to its industry's average PEG of 1.84. Over the past 52 weeks, LDOS's PEG has been as high as 2.67 and as low as 1.43, with a median of 1.72.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LDOS has a P/S ratio of 0.96. This compares to its industry's average P/S of 1.38.
Finally, our model also underscores that LDOS has a P/CF ratio of 13.34. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.44. LDOS's P/CF has been as high as 14.93 and as low as 10.51, with a median of 12.60, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Leidos is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LDOS feels like a great value stock at the moment.
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Are Investors Undervaluing Leidos (LDOS) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Leidos (LDOS - Free Report) is a stock many investors are watching right now. LDOS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.36, while its industry has an average P/E of 21.58. Over the past year, LDOS's Forward P/E has been as high as 16.49 and as low as 11.30, with a median of 13.58.
LDOS is also sporting a PEG ratio of 1.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LDOS's PEG compares to its industry's average PEG of 1.84. Over the past 52 weeks, LDOS's PEG has been as high as 2.67 and as low as 1.43, with a median of 1.72.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LDOS has a P/S ratio of 0.96. This compares to its industry's average P/S of 1.38.
Finally, our model also underscores that LDOS has a P/CF ratio of 13.34. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 21.44. LDOS's P/CF has been as high as 14.93 and as low as 10.51, with a median of 12.60, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Leidos is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LDOS feels like a great value stock at the moment.