Back to top

Image: Bigstock

Why the Market Dipped But Leidos (LDOS) Gained Today

Read MoreHide Full Article

Leidos (LDOS - Free Report) ended the recent trading session at $142.87, demonstrating a +1.31% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 1.82%. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq decreased by 2.86%.

The stock of security and engineering company has risen by 15.62% in the past month, leading the Computer and Technology sector's loss of 6.04% and the S&P 500's gain of 0.71%.

Analysts and investors alike will be keeping a close eye on the performance of Leidos in its upcoming earnings disclosure. The company's earnings report is set to go public on November 3, 2026. The company's earnings per share (EPS) are projected to be $3.04, reflecting a 0.33% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.71 billion, up 5.29% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $12.38 per share and revenue of $18.32 billion, which would represent changes of +3.25% and +6.67%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Leidos. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.84% rise in the Zacks Consensus EPS estimate. Leidos is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Leidos is presently being traded at a Forward P/E ratio of 11.39. This represents a discount compared to its industry average Forward P/E of 15.12.

Meanwhile, LDOS's PEG ratio is currently 1.57. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 1.2.

The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 149, placing it within the bottom 40% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Published in