Back to top

Image: Bigstock

Leidos (LDOS) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Read MoreHide Full Article

The most recent trading session ended with Leidos (LDOS - Free Report) standing at $143.87, reflecting a +0.01% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.25% for the day. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.03%.

The the stock of security and engineering company has fallen by 3.73% in the past month, lagging the Aerospace sector's loss of 1.2% and the S&P 500's gain of 3.34%.

Investors will be eagerly watching for the performance of Leidos in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.13, signifying a 18.33% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $4 billion, showing a 4.2% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.46 per share and a revenue of $16.07 billion, indicating changes of +15.89% and +4.1%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Leidos. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Leidos is carrying a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Leidos has a Forward P/E ratio of 17 right now. This denotes a discount relative to the industry's average Forward P/E of 17.69.

Investors should also note that LDOS has a PEG ratio of 1.54 right now. 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. The Aerospace - Defense industry had an average PEG ratio of 1.76 as trading concluded yesterday.

The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 39% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Leidos Holdings, Inc. (LDOS) - free report >>

Published in