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Here's Why Leidos (LDOS) Fell More Than Broader Market
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Leidos (LDOS - Free Report) closed at $121.83 in the latest trading session, marking a -1.03% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.25%. Meanwhile, the Dow experienced a drop of 0.86%, and the technology-dominated Nasdaq saw an increase of 0.24%.
The security and engineering company's shares have seen a decrease of 11.55% over the last month, not keeping up with the Computer and Technology sector's gain of 4% and the S&P 500's loss of 0.42%.
The upcoming earnings release of Leidos will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3, reflecting a 1.64% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.72 billion, showing a 5.52% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.28 per share and revenue of $18.29 billion, which would represent changes of +2.42% and +6.52%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Leidos. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.86% decrease. As of now, Leidos holds a Zacks Rank of #3 (Hold).
Looking at valuation, Leidos is presently trading at a Forward P/E ratio of 10.03. This valuation marks a discount compared to its industry average Forward P/E of 12.4.
Investors should also note that LDOS has a PEG ratio of 1.38 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.31 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Here's Why Leidos (LDOS) Fell More Than Broader Market
Leidos (LDOS - Free Report) closed at $121.83 in the latest trading session, marking a -1.03% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.25%. Meanwhile, the Dow experienced a drop of 0.86%, and the technology-dominated Nasdaq saw an increase of 0.24%.
The security and engineering company's shares have seen a decrease of 11.55% over the last month, not keeping up with the Computer and Technology sector's gain of 4% and the S&P 500's loss of 0.42%.
The upcoming earnings release of Leidos will be of great interest to investors. The company's earnings per share (EPS) are projected to be $3, reflecting a 1.64% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.72 billion, showing a 5.52% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.28 per share and revenue of $18.29 billion, which would represent changes of +2.42% and +6.52%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Leidos. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.86% decrease. As of now, Leidos holds a Zacks Rank of #3 (Hold).
Looking at valuation, Leidos is presently trading at a Forward P/E ratio of 10.03. This valuation marks a discount compared to its industry average Forward P/E of 12.4.
Investors should also note that LDOS has a PEG ratio of 1.38 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.31 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.