Leidos (LDOS) ended the recent trading session at $148.02, demonstrating a +1.44% change from the preceding day’s closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.38%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.24%.
The security and engineering company’s stock has dropped by 4.66% in the past month, falling short of the Computer and Technology sector’s gain of 11.61% and the S&P 500’s gain of 6.6%.
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The upcoming earnings release of Leidos will be of great interest to investors. The company is expected to report EPS of $2.62, down 0.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.25 billion, up 2.74% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.68 per share and a revenue of $17.11 billion, signifying shifts of +4.6% and +2.67%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Leidos. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.25% increase. Leidos is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Leidos is holding a Forward P/E ratio of 13.67. This indicates a discount in contrast to its industry’s Forward P/E of 20.93.
Also, we should mention that LDOS has a PEG ratio of 1.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Computers – IT Services industry had an average PEG ratio of 2.11 as trading concluded yesterday.
The Computers – IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 34% of all 250+ industries.
