Leidos (LDOS) closed the most recent trading day at $194.05, moving -2.11% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. On the other hand, the Dow registered a loss of 0.52%, and the technology-centric Nasdaq decreased by 0.08%.
The security and engineering company's shares have seen an increase of 9.9% over the last month, surpassing the Computer and Technology sector's gain of 7.19% and the S&P 500's gain of 4.03%.
The investment community will be paying close attention to the earnings performance of Leidos in its upcoming release. The company is slated to reveal its earnings on November 4, 2025. In that report, analysts expect Leidos to post earnings of $2.62 per share. This would mark a year-over-year decline of 10.58%. At the same time, our most recent consensus estimate is projecting a revenue of $4.28 billion, reflecting a 2.06% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.22 per share and revenue of $17.15 billion. These totals would mark changes of +9.89% and +2.95%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Leidos. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Leidos is currently a Zacks Rank #2 (Buy).
In terms of valuation, Leidos is presently being traded at a Forward P/E ratio of 17.66. Its industry sports an average Forward P/E of 17.32, so one might conclude that Leidos is trading at a premium comparatively.
Also, we should mention that LDOS has a PEG ratio of 1.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Computers - IT Services industry stood at 1.81 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 60, this industry ranks in the top 25% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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