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Leidos Holdings Wins $55.7M FMS Deal for Logistics Support
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Leidos Holdings, Inc.’s (LDOS - Free Report) business subsidiary, Leidos Innovations, recently secured a $55.6-million modification contract under the foreign military sales program for providing logistics support services to the Afghan Air Force and Special Mission Wing aircraft fleets. The contract was awarded by the U.S. Army Contracting Command, Redstone Arsenal, AL.
Work related to the deal will be performed in Kabul, Afghanistan and is expected to get completed by May 31, 2020. Lockheed Martin will utilize fiscal 2018 operations and maintenance funds for completing the task.
What’s Favoring Leidos?
Increased contract wins for its cost-effective defense solutions from the Pentagon as well as other U.S. allies have been serving as a primary growth driver for Leidos Holdings. Such contract wins tend to bolster the company’s backlog. Evidently, on Jun 29, 2018, Leidos Holdings’ backlog for its defense business unit stood at $8.32 billion, reflecting an 8.5% increase from 2017 end. Such solid backlog trends indicate impressive revenue growth prospects for the company in quarters ahead.
In line with this we may expect the latest contract win to fuel Leidos Holdings’ top-line growth in the coming days.
Also, the fiscal 2019 defense budget worth $717 billion that was approved by the U.S. Senate this July reflect solid growth opportunities for defense primes like Leidos holdings.
Price Movement
Leidos Holdings’ stock improved about 26.6% in the last year compared with the industry’s rally of 22.7%. The outperformance may have been a result of the favorable budgetary revisions along with solid cash flow growth and strategic restructuring initiatives undertaken by the company.
Zacks Rank and Stocks to Consider
Leidos Holdings currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the same sector are Aerojet Rocketdyne Holdings , Engility Holdings and Huntington Ingalls Industries (HII - Free Report) .
Aerojet Rocketdyne came up with an average positive earnings surprise of 9.27% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by 30.9% to $1.27 in the past 90 days.
Engility Holdings delivered an average positive earnings surprise of 19% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by 18.9% to $2.02 in the past 90 days.
Huntington Ingalls Industries came up with an average positive earnings surprise of 9.48% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by 2.17% to $16.98 in the past 90 days.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Leidos Holdings Wins $55.7M FMS Deal for Logistics Support
Leidos Holdings, Inc.’s (LDOS - Free Report) business subsidiary, Leidos Innovations, recently secured a $55.6-million modification contract under the foreign military sales program for providing logistics support services to the Afghan Air Force and Special Mission Wing aircraft fleets. The contract was awarded by the U.S. Army Contracting Command, Redstone Arsenal, AL.
Work related to the deal will be performed in Kabul, Afghanistan and is expected to get completed by May 31, 2020. Lockheed Martin will utilize fiscal 2018 operations and maintenance funds for completing the task.
What’s Favoring Leidos?
Increased contract wins for its cost-effective defense solutions from the Pentagon as well as other U.S. allies have been serving as a primary growth driver for Leidos Holdings. Such contract wins tend to bolster the company’s backlog. Evidently, on Jun 29, 2018, Leidos Holdings’ backlog for its defense business unit stood at $8.32 billion, reflecting an 8.5% increase from 2017 end. Such solid backlog trends indicate impressive revenue growth prospects for the company in quarters ahead.
In line with this we may expect the latest contract win to fuel Leidos Holdings’ top-line growth in the coming days.
Also, the fiscal 2019 defense budget worth $717 billion that was approved by the U.S. Senate this July reflect solid growth opportunities for defense primes like Leidos holdings.
Price Movement
Leidos Holdings’ stock improved about 26.6% in the last year compared with the industry’s rally of 22.7%. The outperformance may have been a result of the favorable budgetary revisions along with solid cash flow growth and strategic restructuring initiatives undertaken by the company.
Zacks Rank and Stocks to Consider
Leidos Holdings currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the same sector are Aerojet Rocketdyne Holdings , Engility Holdings and Huntington Ingalls Industries (HII - Free Report) .
While Aerojet Rocketdyne Holdings sports a Zacks Rank #1 (Strong Buy), Engility Holdings and Huntington Ingalls carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aerojet Rocketdyne came up with an average positive earnings surprise of 9.27% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by 30.9% to $1.27 in the past 90 days.
Engility Holdings delivered an average positive earnings surprise of 19% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by 18.9% to $2.02 in the past 90 days.
Huntington Ingalls Industries came up with an average positive earnings surprise of 9.48% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings has risen by 2.17% to $16.98 in the past 90 days.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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