Back to top

Image: Bigstock

Leidos (LDOS) Laps the Stock Market: Here's Why

Read MoreHide Full Article

Leidos (LDOS - Free Report) closed the most recent trading day at $159.04, moving +1.84% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.8% for the day. Meanwhile, the Dow experienced a drop of 0.15%, and the technology-dominated Nasdaq saw an increase of 1.6%.

Shares of the security and engineering company have depreciated by 7.58% over the course of the past month, underperforming the Computer and Technology sector's gain of 7.62%, and the S&P 500's gain of 5.15%.

Market participants will be closely following the financial results of Leidos in its upcoming release. The company plans to announce its earnings on May 5, 2026. On that day, Leidos is projected to report earnings of $2.89 per share, which would represent a year-over-year decline of 2.69%. Alongside, our most recent consensus estimate is anticipating revenue of $4.28 billion, indicating a 0.85% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.3 per share and a revenue of $17.79 billion, indicating changes of +2.59% and +3.59%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Leidos. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.25% rise in the Zacks Consensus EPS estimate. Leidos is currently a Zacks Rank #4 (Sell).

From a valuation perspective, Leidos is currently exchanging hands at a Forward P/E ratio of 12.69. This expresses a premium compared to the average Forward P/E of 12.66 of its industry.

Also, we should mention that LDOS has a PEG ratio of 1.09. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. LDOS's industry had an average PEG ratio of 1.14 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 33% of all 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in