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Why Is Leidos (LDOS) Down 6.7% Since Last Earnings Report?

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It has been about a month since the last earnings report for Leidos (LDOS - Free Report) . Shares have lost about 6.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Leidos due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

VGM Scores

At this time, Leidos has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Leidos has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Leidos belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, Cognizant (CTSH - Free Report) , has gained 2.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2025.

Cognizant reported revenues of $5.12 billion in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $1.23 for the same period compares with $1.12 a year ago.

For the current quarter, Cognizant is expected to post earnings of $1.25 per share, indicating a change of +6.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Cognizant. Also, the stock has a VGM Score of B.


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