The latest trading session saw Leidos (LDOS) ending at $145.75, denoting a +0.03% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.06%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.1%.
The the stock of security and engineering company has risen by 8.69% in the past month, leading the Aerospace sector's loss of 4.22% and the S&P 500's loss of 4.29%.
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 May 6, 2025. The company is predicted to post an EPS of $2.47, indicating a 7.86% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.08 billion, indicating a 2.66% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $10.51 per share and a revenue of $17.09 billion, demonstrating changes of +2.94% and +2.57%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Leidos. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.19% higher. Leidos is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Leidos has a Forward P/E ratio of 13.86 right now. This represents a discount compared to its industry's average Forward P/E of 19.6.
Also, we should mention that LDOS has a PEG ratio of 1.87. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense was holding an average PEG ratio of 2 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 38% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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