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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.

During the first quarter of 2024, Leidos Holdings completed a realignment of its segment and reporting structure. Consequently, the company currently operates through the following four business segments:

National Security and Digital: This business segment offers technology-enabled services and mission software capabilities in the areas of cyber, logistics, security operations and decision analytics, as well as IT operations and digital transformation programs. In the third quarter of 2024, this division generated revenues of $1,865 million, contributing 44.5% to Leidos’ total revenues.

Health & Civil: This segment provides services and solutions in the areas of public health, care coordination, life and environmental sciences and transportation. Its core capabilities include health information management services, managed health services, systems and infrastructure modernization, and life sciences research and development.  The unit recorded revenues of $1,225 million in the third quarter of 2024 that accounted for 29.2% of Leidos’ total revenues.

Commercial & International: This unit’s products include IT modernization, software solutions, mission support and logistics, Command, Control, Computers, Communications, Intelligence, Surveillance and Reconnaissance (C4ISR) technologies and services, cloud services, power grid engineering, energy modernization and security products and services. Revenues from this division totaled $578 million, representing 13.8% of Leidos’ total revenues.

Defense Systems: This unit develops and produces advanced space, aerial, surface, and sub-surface manned and unmanned defense systems. Revenues from this division totaled $522 million in the third quarter of 2024, representing 12.5% of Leidos’ total revenues.

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.

A $1000 investment made in November 2014 would be worth $5,003.28, or a 400.33% gain, as of November 4, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 183.88% and gold's return of 124.98% over the same time frame.

Going forward, analysts are expecting more upside for LDOS.

Leidos Holdings ended third-quarter 2024 on a solid note, with both its earnings and revenues having surpassed their respective Zacks Consensus Estimate. Its defense solutions continue to witness increased contract wins from the Pentagon and other U.S. allies, which led to a solid backlog of $40.56 billion at the end of September 2024. Such a solid backlog bolsters its revenue growth prospects. An impressive U.S. defense budget is another major growth driver for Leidos. 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 Leidos. The stock is expensive compared to its industry in terms of Price/Book ratio. Persistent supply-chain challenges also pose a risk for the company.

Shares have gained 9.96% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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