Leidos (LDOS) ended the recent trading session at $145.75, demonstrating a -1.05% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Coming into today, shares of the security and engineering company had lost 8.03% in the past month. In that same time, the Aerospace sector lost 4.44%, while the S&P 500 lost 2.8%.
The upcoming earnings release of Leidos will be of great interest to investors. The company's upcoming EPS is projected at $2.19, signifying a 10.05% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.12 billion, reflecting a 3.58% rise from the equivalent quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Leidos. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.69% increase. Currently, Leidos is carrying a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Leidos has a Forward P/E ratio of 14.27 right now. This indicates a discount in contrast to its industry's Forward P/E of 17.56.
It's also important to note that LDOS currently trades at a PEG ratio of 0.96. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Aerospace - Defense industry currently had an average PEG ratio of 1.38 as of yesterday's close.
The Aerospace - Defense industry is part of the Aerospace sector. With its current Zacks Industry Rank of 164, this industry ranks in the bottom 35% 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.
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