Leidos Holdings (LDOS) Soars 0.25% on Strong Q1 Earnings
Leidos Holdings (LDOS) shares rose 0.25% today, marking the second consecutive day of gains, with a total increase of 0.89% over the past two days. The stock price reached its highest level since January 2025, with an intraday gain of 1.02%.
The strategy of buying LDOS shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years. The compound annual growth rate (CAGR) for the period from May 2020 to May 2025 was 8.42%, which is in line with the market average. However, this CAGR is below the 16% EPS growth rate achieved by Leidos Holdings over the same period, indicating that while the stock provided some growth, it lagged behind the company's earnings growth.Analysts have shown a positive outlook on Leidos Holdings, with the company currently holding a Zacks Rank of #2 (Buy). This ranking is supported by brokerage recommendation trends, where 60% of recommendations are Strong Buy, indicating confidence in the stock's potential.
Leidos Holdings reported strong financial performance for the first quarter of 2025, with both earnings and revenues showing increases. This positive performance has led analysts to forecast further upside, suggesting a bullish outlook for the company's financial health.
Jefferies has adjusted its price target for Leidos from $155 to $175, reflecting an expectation of growth. This adjustment could positively influence investor sentiment, contributing to the stock's recent gains.
Leidos Holdings reported a year-over-year revenue increase of 7%, reaching $4.25 billion, alongside a 30% improvement in adjusted earnings. The Zacks Consensus Estimate further supports expected sales growth, providing additional confidence in the company's financial prospects.
