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Is Leidos (LDOS) a Great Value Stock 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

One company to watch right now is Leidos (LDOS - Free Report) . LDOS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 17.04, while its industry has an average P/E of 24.86. Over the last 12 months, LDOS's Forward P/E has been as high as 22.35 and as low as 12.18, with a median of 16.22.

Finally, our model also underscores that LDOS has a P/CF ratio of 17.64. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. LDOS's current P/CF looks attractive when compared to its industry's average P/CF of 20.36. LDOS's P/CF has been as high as 19.46 and as low as 11.18, with a median of 16.14, all within the past year.

These are just a handful of the figures considered in Leidos's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that LDOS is an impressive value stock right now.


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