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If You Invested $1000 in Leidos a Decade Ago, This is How Much It'd Be Worth Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Leidos (LDOS - Free Report) ten years ago? It may not have been easy to hold on to LDOS for all that time, but if you did, how much would your investment be worth today?

Leidos' Business In-Depth

With that in mind, let's take a look at Leidos' main business drivers.

Founded in 1969, Delaware-based Leidos Holdings, Inc. is a global science and technology leader that serves the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization; operations and logistics; sensors, collection and phenomenology; software development; and systems engineering. Outside the United States, the company’s international customers include foreign governments and their agencies, primarily located in the United Kingdom, the Middle East and Australia.

Leidos Holdings currently operates through three business segments namely — Defense Solutions, Civil and Health.

Defense Solutions: This business segment offers surveillance and reconnaissance, integrated systems solutions and global services for the U.S. Intelligence Community, military commands as well as other government and commercial customers. It provides multi-spectral, airborne, ground and maritime ISR collection as well as processing systems, advanced sensor design, command and control solutions, and training systems. In 2023, this division generated sales of $8,732 million, contributing 56.6% to total business sales.

Civil: This segment provides aviation solutions, security products, enterprise IT services, federal environment and infrastructure solutions as well as logistics. While aviation solutions provide systems integration for Air Navigation Service Providers, including the FAA and airport operators, security products include Vehicle and Cargo Inspection System, explosive detection systems as well as radiation detection systems. The unit realized sales of $3,664 million in 2023, accounting for 23.7% of total business sales.

Health: This unit offers affordable solutions to federal and commercial customers, which are responsible for the health and well-being of people worldwide comprising service members and veterans. Its primary capabilities include providing complex systems integration, managed health services, enterprise IT transformation and life sciences.  Sales in this division totaled $3,042 million in 2023, representing 19.7% of the entire business sales.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Leidos ten years ago, you're likely feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in July 2014 would be worth $4,052.59, or a gain of 305.26%, as of July 17, 2024, and this return excludes dividends but includes price increases.

The S&P 500 rose 186% and the price of gold increased 79.63% over the same time frame in comparison.

Analysts are forecasting more upside for LDOS too.

Leidos Holdings’ cost-effective defense solutions continue to witness increased contract wins from the Pentagon and other U.S. allies, which led to a solid backlog of $36.57 billion at the end of March 2024. Such a solid backlog bolsters its revenue growth prospects. Significant acquisitions also bolster its performance. In 2023, the Cobham Special Mission acquisition boosted the company’s revenues by $94 million. A substantial U.S. defense budget is another major growth driver for Leidos Holdings. The company holds a solid solvency position. The company’s shares have outperformed its industry in the past year. However, the shortage of skilled labor in the aerospace and defense industry poses a threat to the stock. A comparative analysis of the company’s trailing 12-month Price/Book ratio reflects a relatively gloomy picture.

Shares have gained 5.52% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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