Back to top

Image: Bigstock

Leidos (LDOS) Stock Sinks As Market Gains: Here's Why

Read MoreHide Full Article

In the latest trading session, Leidos (LDOS - Free Report) closed at $160.74, marking a -1.11% move from the previous day. This change lagged the S&P 500's 0.14% gain on the day. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.38%.

Heading into today, shares of the security and engineering company had gained 9.49% over the past month, outpacing the Computer and Technology sector's gain of 7.37% and the S&P 500's gain of 5.35%.

The upcoming earnings release of Leidos will be of great interest to investors. The company's earnings report is expected on August 5, 2025. The company is forecasted to report an EPS of $2.62, showcasing a 0.38% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $4.23 billion, up 2.39% from the year-ago period.

LDOS's full-year Zacks Consensus Estimates are calling for earnings of $10.85 per share and revenue of $17.14 billion. These results would represent year-over-year changes of +6.27% and +2.87%, respectively.

Investors should also note any recent changes to analyst estimates for Leidos. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.35% upward. Right now, Leidos possesses a Zacks Rank of #2 (Buy).

In terms of valuation, Leidos is presently being traded at a Forward P/E ratio of 14.98. This expresses a discount compared to the average Forward P/E of 19.47 of its industry.

Also, we should mention that LDOS has a PEG ratio of 1.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computers - IT Services industry had an average PEG ratio of 1.95 as trading concluded yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 82, positioning it in the top 34% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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