Leidos (LDOS) closed the most recent trading day at $173.00, moving -11.15% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. Meanwhile, the Dow experienced a drop of 0.13%, and the technology-dominated Nasdaq saw a decrease of 0.16%.
The security and engineering company's stock has dropped by 0.63% in the past month, exceeding the Computer and Technology sector's loss of 1.54% and lagging the S&P 500's loss of 0.28%.
Analysts and investors alike will be keeping a close eye on the performance of Leidos in its upcoming earnings disclosure. The company's earnings report is set to go public on February 17, 2026. The company's upcoming EPS is projected at $2.57, signifying a 8.44% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.25 billion, reflecting a 2.58% fall from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $11.76 per share and revenue of $17.22 billion, indicating changes of +15.18% and +3.35%, respectively, compared to the previous 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, there's been a 0.04% fall in the Zacks Consensus EPS estimate. Currently, Leidos is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Leidos is currently being traded at a Forward P/E ratio of 15.77. This expresses a premium compared to the average Forward P/E of 15.25 of its industry.
One should further note that LDOS currently holds a PEG ratio of 1.36. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 1.3.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 140, putting it in the bottom 43% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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