In the latest trading session, Leidos (LDOS) closed at $132.90, marking a -0.18% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.23%. On the other hand, the Dow registered a loss of 0.91%, and the technology-centric Nasdaq increased by 0.1%.
The the stock of security and engineering company has fallen by 4.38% in the past month, lagging the Aerospace sector's loss of 1.41% and overreaching the S&P 500's loss of 12.13%.
The upcoming earnings release of Leidos will be of great interest to investors. It is anticipated that the company will report an EPS of $2.47, marking a 7.86% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.08 billion, indicating a 2.71% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.49 per share and a revenue of $17.09 billion, indicating changes of +2.74% and +2.58%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Leidos. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Leidos is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Leidos's current valuation metrics, including its Forward P/E ratio of 12.69. This expresses a discount compared to the average Forward P/E of 18.47 of its industry.
We can also see that LDOS currently has a PEG ratio of 1.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.85.
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 136, which puts it in the bottom 46% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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