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Leidos (LDOS) Exceeds Market Returns: Some Facts to Consider
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Leidos (LDOS - Free Report) ended the recent trading session at $197.50, demonstrating a +1.03% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.62%. Elsewhere, the Dow saw an upswing of 0.99%, while the tech-heavy Nasdaq appreciated by 0.65%.
The stock of security and engineering company has risen by 5.32% in the past month, leading the Computer and Technology sector's loss of 1.47% and the S&P 500's gain of 0.59%.
The investment community will be closely monitoring the performance of Leidos in its forthcoming earnings report. On that day, Leidos is projected to report earnings of $2.52 per share, which would represent year-over-year growth of 6.33%. Meanwhile, our latest consensus estimate is calling for revenue of $4.25 billion, down 2.58% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.72 per share and a revenue of $17.22 billion, representing changes of +14.79% and 0%, respectively, from the prior year.
Any recent changes to analyst estimates for Leidos should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. As of now, Leidos holds a Zacks Rank of #2 (Buy).
Looking at its valuation, Leidos is holding a Forward P/E ratio of 15.92. Its industry sports an average Forward P/E of 16.48, so one might conclude that Leidos is trading at a discount comparatively.
One should further note that LDOS currently holds a PEG ratio of 1.37. 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 average PEG ratio for the Computers - IT Services industry stood at 1.56 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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 Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Leidos (LDOS) Exceeds Market Returns: Some Facts to Consider
Leidos (LDOS - Free Report) ended the recent trading session at $197.50, demonstrating a +1.03% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.62%. Elsewhere, the Dow saw an upswing of 0.99%, while the tech-heavy Nasdaq appreciated by 0.65%.
The stock of security and engineering company has risen by 5.32% in the past month, leading the Computer and Technology sector's loss of 1.47% and the S&P 500's gain of 0.59%.
The investment community will be closely monitoring the performance of Leidos in its forthcoming earnings report. On that day, Leidos is projected to report earnings of $2.52 per share, which would represent year-over-year growth of 6.33%. Meanwhile, our latest consensus estimate is calling for revenue of $4.25 billion, down 2.58% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.72 per share and a revenue of $17.22 billion, representing changes of +14.79% and 0%, respectively, from the prior year.
Any recent changes to analyst estimates for Leidos should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. As of now, Leidos holds a Zacks Rank of #2 (Buy).
Looking at its valuation, Leidos is holding a Forward P/E ratio of 15.92. Its industry sports an average Forward P/E of 16.48, so one might conclude that Leidos is trading at a discount comparatively.
One should further note that LDOS currently holds a PEG ratio of 1.37. 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 average PEG ratio for the Computers - IT Services industry stood at 1.56 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 40% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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 Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.