The most recent trading session ended with Leidos (LDOS) standing at $144.42, reflecting a -0.05% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.01% for the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.32%.
Coming into today, shares of the security and engineering company had lost 6.63% in the past month. In that same time, the Computer and Technology sector gained 7.95%, while the S&P 500 gained 5.2%.
Analysts and investors alike will be keeping a close eye on the performance of Leidos in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.62, showcasing a 0.38% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $4.25 billion, reflecting a 2.74% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.68 per share and revenue of $17.11 billion, indicating changes of +4.6% and +2.67%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Leidos. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.59% higher. Leidos currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Leidos is presently trading at a Forward P/E ratio of 13.53. This expresses a discount compared to the average Forward P/E of 19.74 of its industry.
It is also worth noting that LDOS currently has a PEG ratio of 1.83. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 2.2.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 63, placing it within the top 26% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Leidos Holdings, Inc. (LDOS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
