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Leidos (LDOS) Dips More Than Broader Market: What You Should Know

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Leidos (LDOS - Free Report) closed at $114.37 in the latest trading session, marking a -3.37% move from the prior day. This change lagged the S&P 500's daily loss of 1.52%. Meanwhile, the Dow lost 2.19%, and the Nasdaq, a tech-heavy index, lost 1.74%.

The security and engineering company's stock has climbed by 14.95% in the past month, exceeding the Computer and Technology sector's loss of 3.5% and the S&P 500's gain of 1.92%.

Market participants will be closely following the financial results of Leidos in its upcoming release. The company plans to announce its earnings on August 4, 2026. On that day, Leidos is projected to report earnings of $2.9 per share, which would represent a year-over-year decline of 9.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.36 billion, up 2.55% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $12.24 per share and a revenue of $18.12 billion, demonstrating changes of +2.09% and +5.53%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Leidos. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.35% higher. Leidos is currently a Zacks Rank #3 (Hold).

Investors should also note Leidos's current valuation metrics, including its Forward P/E ratio of 9.67. This valuation marks a discount compared to its industry average Forward P/E of 13.4.

It is also worth noting that LDOS currently has a PEG ratio of 1.74. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computers - IT Services industry stood at 1.1 at the close of the market yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 82, finds itself in the top 34% echelons 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.

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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