In the latest trading session, Leidos (LDOS) closed at $133.44, marking a -0.5% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.49%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw an increase of 1.22%.
Shares of the security and engineering company have depreciated by 2.54% over the course of the past month, outperforming the Aerospace sector's loss of 3.5% and the S&P 500's loss of 8.15%.
The investment community will be paying close attention to the earnings performance of Leidos in its upcoming release. It is anticipated that the company will report an EPS of $2.47, marking a 7.86% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.08 billion, reflecting a 2.71% rise from the equivalent quarter last year.
LDOS's full-year Zacks Consensus Estimates are calling for earnings of $10.49 per share and revenue of $17.09 billion. These results would represent year-over-year changes of +2.74% and +2.58%, respectively.
It is also important to note the recent changes to analyst estimates for Leidos. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.59% upward. Currently, Leidos is carrying a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Leidos has a Forward P/E ratio of 12.78 right now. This represents a discount compared to its industry's average Forward P/E of 19.34.
One should further note that LDOS currently holds a PEG ratio of 1.73. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Aerospace - Defense industry was having an average PEG ratio of 1.8.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 136, this industry ranks in the bottom 46% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
