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Leidos (LDOS) Advances While Market Declines: Some Information for Investors

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Leidos (LDOS - Free Report) closed at $156.09 in the latest trading session, marking a +0.19% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.16%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, lost 0.3%.

The the stock of security and engineering company has risen by 8.73% in the past month, leading the Aerospace sector's gain of 3.61% and the S&P 500's gain of 3.64%.

The investment community will be paying close attention to the earnings performance of Leidos in its upcoming release. On that day, Leidos is projected to report earnings of $1.95 per share, which would represent a year-over-year decline of 3.94%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.04 billion, indicating a 3.08% increase compared to the same quarter of the previous year.

LDOS's full-year Zacks Consensus Estimates are calling for earnings of $8.95 per share and revenue of $16.27 billion. These results would represent year-over-year changes of +22.6% and +5.4%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Leidos. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.17% higher. Leidos is currently sporting a Zacks Rank of #2 (Buy).

In the context of valuation, Leidos is at present trading with a Forward P/E ratio of 17.4. This indicates a discount in contrast to its industry's Forward P/E of 20.79.

Meanwhile, LDOS's PEG ratio is currently 1.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Aerospace - Defense industry had an average PEG ratio of 1.84.

The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 49, placing it within the top 20% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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