In the latest trading session, Leidos (LDOS) closed at $129.55, marking a +1.1% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.59%. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw a decrease of 0.65%.
The security and engineering company's shares have seen a decrease of 8.72% over the last month, not keeping up with the Computer and Technology sector's loss of 0.02% and the S&P 500's loss of 1.37%.
Analysts and investors alike will be keeping a close eye on the performance of Leidos in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $3.12, reflecting a 2.3% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.72 billion, up 5.52% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.38 per share and revenue of $18.29 billion, indicating changes of +3.25% and +6.52%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Leidos should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Leidos possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Leidos is currently being traded at a Forward P/E ratio of 10.35. Its industry sports an average Forward P/E of 13.32, so one might conclude that Leidos is trading at a discount comparatively.
Investors should also note that LDOS has a PEG ratio of 1.42 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services was holding an average PEG ratio of 1.31 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Leidos Holdings, Inc. (LDOS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).