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Leidos Receives Global Network Management Contract by DISA

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Leidos Holdings Inc. (LDOS - Free Report) recently clinched an award from the Defense Information Systems Agency (DISA) for providing network services under the Global Solutions Management - Operations (GSM-O) II contract.  Work related to the contract, having a ceiling value of $6.5 billion, will be performed on a global scale with the significant domestic workforce in Scott Air Force Base, Ill., Honolulu, HI, and other locations across the United States.

Details of the Contract

Per the terms, Leidos will operate, defend and sustain the Department of Defense Information Network / Defense Information System Network (DoDIN/DISN). The company will provide network operations and sustainment, network maintenance and repair, and network cybersecurity assurance. Moreover, Leidos will modernize the information network system that connects warfighters and government leaders globally.

How Will This Deal Benefit Leidos?

Per Markets and Markets Research, the global Network Management System (NMS) Market is expected to see a CAGR of 9.5% from $7 billion in 2019 to $11 billion by 2024. The ever-increasing need for in-depth visibility into network security and Quality of Service (QoS) along with the growing network infrastructure on a global scale are the major factors, which are expected to drive growth during the 2019-2024 period.

Furthermore, exponential growth in the global Internet Protocol (IP) traffic and cloud traffic, and prominence of the Internet of Things (IoT) are expected to offer vast market opportunities to NMS vendors. As Leidos specializes in building complex network management system, evident from the acquisition of the latest contract, the forecasted market growth should significantly benefit the company in the days ahead.

Price Movement

In a year’s time, shares of Leidos have soared 68.3% compared with the industry’s 25.2% growth.



Zacks Rank & Other Key Picks    

Leidos Holdings currently carries a Zacks Rank #2 (Buy).

A few similar-ranked stocks in the same sector are L3Harris Technology Inc (LHX - Free Report) , Teledyne Technologies (TDY - Free Report) and Air Industries Group (AIRI - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

L3Harris’ long-term growth estimate currently stands at 10.4%. The company delivered average positive earnings surprise of 5.02% in the last four quarters.

Air Industries Group delivered average positive earnings surprise of 52.78% in the last four quarters. The Zacks Consensus Estimate for 2019 loss has increased 63.6% to 4 cents over the past 60 days.

Teledyne delivered average four-quarter earnings beat of 10.13%. It currently has a solid long-term earnings growth rate of 7.5%.

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