Leidos (LDOS) ended the recent trading session at $195.60, demonstrating a -1.38% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq increased by 0.26%.
Shares of the security and engineering company have appreciated by 4.54% over the course of the past month, outperforming the Computer and Technology sector's loss of 0.85%, and the S&P 500's gain of 1.89%.
Investors will be eagerly watching for the performance of Leidos in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.54, reflecting a 7.17% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.25 billion, showing a 2.58% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.74 per share and a revenue of $17.22 billion, signifying shifts of +14.99% and 0%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Leidos. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. Leidos is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Leidos is currently being traded at a Forward P/E ratio of 16.16. Its industry sports an average Forward P/E of 17.69, so one might conclude that Leidos is trading at a discount comparatively.
We can also see that LDOS currently has a PEG ratio of 1.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 1.56 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 38% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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