Leidos Holdings, Inc. (NYSE:LDOS) is one of the
most undervalued AI stocks to buy now.
With significant analyst and hedge fund sentiment, alongside a low forward price-to-earnings (PE) ratio, Leidos Holdings, Inc. (NYSE:LDOS) secures a spot on our list of the most undervalued AI stocks to buy now.
On February 19, 2026, Leidos Holdings, Inc. (NYSE:LDOS) demonstrated its strong operational progress, announcing that its Terminal Flight Data Manager system had started running at Reagan National Airport. Marking a 45% faster rollout than the typical 18-month cycle, the system takes the place of paper flight strips, featuring real-time digital tracking and predictive tools.
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The move reflects the company’s focus on mission-critical programs, with the system primarily serving the Federal Aviation Administration. The system is currently live in ten airports, with more planned for the future. Looking ahead, Leidos Holdings, Inc. (NYSE:LDOS) remains well-positioned to capitalize on government plans to modernize U.S. airspace infrastructure.
Amid this positive development, analysts at Stifel remain skeptical about Veterans Affairs contract risks and concerns surrounding AI’s impact on the stock, prompting a price target cut from $220 to $205. While noting the company’s strong fourth-quarter EBITDA, the firm sees limited short-term visibility and describes management’s FY26 guidance as conservative. As of February 18, 2026, the firm keeps a ‘Hold’ rating on Leidos Holdings, Inc. (NYSE:LDOS).
Leidos Holdings, Inc. (NYSE:LDOS) focuses on delivering defense, civil, and health technology solutions. The company specializes in providing digital modernization, mission systems, infrastructure security, and federal health services, primarily serving U.S. government agencies.
While we acknowledge the potential of LDOS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the
best short-term AI stock.
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