Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
The Boeing Company (BA) - $25 value - yours FREE >>
Lockheed Martin Corporation (LMT) - $25 value - yours FREE >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Boeing Company (BA) - $25 value - yours FREE >>
Lockheed Martin Corporation (LMT) - $25 value - yours FREE >>
Image: Bigstock
Reasons to Add Leidos Holdings (LDOS) to Your Portfolio Now
Leidos Holdings’ (LDOS - Free Report) commendable budgetary revisions, strong cash flow growth and solid contract inflows will likely boost its performance in the long term.
Contract Inflows
Ongoing contract wins for the company’s cost-effective defense solutions from the Pentagon as well as other U.S. allies are primary growth drivers. In fact, these contracts tend to strengthen Leidos Holdings’ backlog.
At the end of second-quarter 2019, Leidos Holdings’ total backlog stood at $21.7 billion compared with $21.5 billion at the end of the first quarter. Such solid backlog trends indicate outstanding revenue growth prospects for the company in the upcoming quarters.
Improvement in Defense Budget
The company envisions more growth prospects, considering the current U.S. administration’s inclination to increase defense spending. In this regard, it is crucial to mention that the fiscal 2020 defense budget shows 5% rise in spending levels from fiscal 2019’s budget.
Steady Cash Flow & Dividend Hike
Leidos Holdings’ well-defined balance sheet and steady cash flow position provide it significant financial flexibility. This enables the company to reward shareholders with outstanding dividend payouts and share repurchases.
Solid cash flow reserve seems to have propelled Leidos Holdings to make it’s first-ever dividend hike. The board of directors announced a dividend hike of 6%. Such cash deployment strategies bode well for the company’s growth.
Leidos Holdings’ current dividend yield is better than the industry’s average.
Other companies from the aerospace & defense space that hold favorable dividend yield ratio are Lockheed Martin Corporation (LMT - Free Report) , The Boeing Company (BA - Free Report) and Bae Systems (BAESY - Free Report) .
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>