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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 value investors might notice is Leidos (LDOS - Free Report) . LDOS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.71, which compares to its industry's average of 20.90. LDOS's Forward P/E has been as high as 17.47 and as low as 12.93, with a median of 15.26, all within the past year.

Investors will also notice that LDOS has a PEG ratio of 1.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LDOS's PEG compares to its industry's average PEG of 2.26. Within the past year, LDOS's PEG has been as high as 1.61 and as low as 1.21, with a median of 1.47.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LDOS has a P/S ratio of 1.16. This compares to its industry's average P/S of 1.35.

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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