In the latest close session, Leidos (LDOS) was up +1.82% at $187.15. The stock's change was more than the S&P 500's daily gain of 0.48%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.94%.
Shares of the security and engineering company have appreciated by 2.02% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.46%, and the S&P 500's gain of 2.46%.
The investment community will be closely monitoring the performance of Leidos in its forthcoming earnings report. The company's upcoming EPS is projected at $2.62, signifying a 10.58% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.28 billion, indicating a 2.06% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.22 per share and revenue of $17.15 billion, which would represent changes of +9.89% and +2.95%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Leidos. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.22% higher. As of now, Leidos holds a Zacks Rank of #2 (Buy).
With respect to valuation, Leidos is currently being traded at a Forward P/E ratio of 16.38. This indicates a discount in contrast to its industry's Forward P/E of 16.98.
Also, we should mention that LDOS has a PEG ratio of 1.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. LDOS's industry had an average PEG ratio of 2.08 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 143, this industry ranks in the bottom 43% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Leidos Holdings, Inc. (LDOS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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