Leidos (LDOS) Stock Sinks As Market Gains: What You Should Know

Leidos (LDOS) closed the most recent trading day at $167.45, moving -3.69% from the previous trading session. This change lagged the S&P 500's 1.01% gain on the day. Meanwhile, the Dow experienced a rise of 0.83%, and the technology-dominated Nasdaq saw an increase of 1.22%.

Shares of the security and engineering company witnessed a loss of 1.38% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.06%, and the S&P 500's loss of 2.86%.

The investment community will be closely monitoring the performance of Leidos in its forthcoming earnings report. The company is forecasted to report an EPS of $2.94, showcasing a 1.01% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.3 billion, indicating a 1.32% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.32 per share and a revenue of $17.81 billion, representing changes of +2.75% and +3.73%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Leidos. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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 past month, there's been a 1.49% fall in the Zacks Consensus EPS estimate. Leidos is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, Leidos is currently trading at a Forward P/E ratio of 14.12. This indicates a premium in contrast to its industry's Forward P/E of 13.56.

Investors should also note that LDOS has a PEG ratio of 1.21 right now. 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 average PEG ratio for the Computers - IT Services industry stood at 1.18 at the close of the market yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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Leidos Holdings, Inc. (LDOS): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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