Leidos Holdings (LDOS) Soars 4.60% on Strong Q1 Earnings

Leidos Holdings (LDOS) shares surged 4.60%, reaching their highest level since January 2025, with an intraday gain of 5.29%.

The strategy of buying LDOS shares after they reached a recent high and holding for one week resulted in poor performance over the past five years. The strategy yielded a return of -3.64%, significantly underperforming the benchmark return of 39.28%. The excess return was -42.93%, and the CAGR was -1.61%, indicating a decline in value. The strategy also had a Sharpe ratio of -0.56, a maximum drawdown of -4.88%, and a volatility of 2.85%, suggesting higher risk and negative returns.

The recent surge in Leidos Holdings' stock price can be attributed to the company's robust first-quarter financial performance for fiscal year 2025. The company reported revenues of $4.25 billion, a 7% increase year-over-year, and a net income of $365 million, or $2.77 per diluted share, up 29% and 34% year-over-year, respectively. These results exceeded market expectations, driving positive investor sentiment and contributing to the stock's upward trajectory. The growth was fueled by increased demand across customer segments, successful execution of programs, and strategic positioning aligned with their NorthStar 2030 Strategy. Additionally, Leidos' backlog grew due to new security and defense contract awards, further supporting the stock's positive momentum.