Leidos (LDOS) Shares Decline Despite Market Gains: Essential Information for Investors

Leidos Stock Performance Overview

Leidos (LDOS) ended the latest trading session at $162.54, reflecting a 2.01% decline from the previous day. In contrast, the S&P 500 advanced by 1.15% for the day. The Dow Jones Industrial Average and the Nasdaq both posted gains of 1.38%.

Over the past month, shares of this security and engineering firm have dropped by 4.4%. This decline is less severe than the Computer and Technology sector’s 5.27% loss and the S&P 500’s 5.69% decrease during the same period.

Upcoming Earnings and Analyst Expectations

Market participants are closely monitoring Leidos as it prepares to announce its next earnings results. Current projections suggest the company will report earnings per share (EPS) of $2.94, which would be a 1.01% decrease compared to the same quarter last year. Revenue is anticipated to reach $4.3 billion, representing a 1.32% year-over-year increase.

For the entire fiscal year, the Zacks Consensus Estimates forecast earnings of $12.32 per share and total revenue of $17.81 billion. These figures would mark improvements of 2.75% and 3.73%, respectively, over the previous year’s results.

Analyst Estimate Revisions and Zacks Rank

Investors should pay attention to any recent changes in analyst forecasts for Leidos, as these updates often reflect shifting short-term business conditions. Upward revisions typically signal increased confidence in the company’s outlook and earnings potential.

Research indicates that adjustments in analyst estimates are closely linked to short-term stock price movements. To help investors capitalize on this, Zacks has developed a proprietary ranking system that incorporates these estimate changes.

The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a long-standing record of outperforming the market, with #1 ranked stocks averaging annual returns of 25% since 1988. Over the past month, the consensus EPS estimate for Leidos has fallen by 0.8%. Currently, Leidos is rated as a Zacks Rank #4 (Sell).

Valuation Metrics

Leidos is trading at a Forward Price-to-Earnings (P/E) ratio of 13.47, which is higher than the industry average Forward P/E of 12.5.

Additionally, LDOS has a Price/Earnings-to-Growth (PEG) ratio of 1.16. This metric, like the P/E ratio, factors in expected earnings growth. The Computers - IT Services industry, as of the last market close, had an average PEG ratio of 1.14.

Industry Standing

The Computers - IT Services group is part of the broader Computer and Technology sector. With a current Zacks Industry Rank of 78, this industry is positioned within the top 32% of over 250 industries tracked.

The Zacks Industry Rank is determined by the average Zacks Rank of the companies within each industry. Historically, industries in the top half outperform those in the bottom half by a two-to-one margin.