Leidos Holdings LDOS is strengthening its position in advanced defense technologies as the U.S. military accelerates the development and production of hypersonic weapons. The company continues to secure contracts supporting hypersonic weapons programs, highlighting its growing role in this strategically important area of defense.
Leidos’ hypersonics efforts span the Thermal Protection Shield (TPS) and Common Hypersonic Glide Body (CHGB) programs, supporting the transition of these capabilities from development to production. The company’s work is focused on streamlining development, reducing production timelines and supporting a reliable supply of critical components for the Army and Navy.
Leidos brings expertise in guidance systems, sensor technologies and precision munitions integration to these programs. The company has served as the prime contractor for the TPS program since 2021 and the CHGB program since 2019, providing it with established capabilities and experience in hypersonic technologies.
The transition of hypersonic programs toward production should provide Leidos with greater revenue visibility while strengthening its position in the rapidly developing market. Growing emphasis on advanced precision-strike capabilities and integrated air and missile defense should create additional opportunities for the company.
Leidos’ NorthStar 2030 strategy emphasizes innovation and technological leadership in defense and national security. Its focus on advanced hypersonic and precision-strike technologies supports the company’s long-term growth strategy. With established program expertise and rising U.S. investment in hypersonic weapons, Leidos is well-positioned to benefit from the growing demand for next-generation defense systems.
Defense Stocks to Keep on the Radar
The global hypersonic weapons market is expected to grow steadily over the long term as the US and its allies invest in advanced strike, missile defense and deterrence capabilities. Rising geopolitical tensions and the need for faster, harder-to-detect weapons should support continued investment in hypersonic technologies.
Lockheed Martin LMT: Lockheed Martin is developing and scaling production of advanced hypersonic weapons, positioning it to benefit from rising demand for next-generation strike capabilities.
RTX Corporation RTX: RTX is developing advanced hypersonic weapons, propulsion systems and related technologies, giving it exposure to the growing demand for next-generation defense systems.
The Zacks Rundown for LDOS
Shares of LDOS have lost 30.8% in the past year compared with the industry’s 21% decline.
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The company’s shares are trading at a discount on a relative basis, with its forward 12-month Price/Sales being 0.86X compared with its industry’s average of 11.74X.
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The Zacks Consensus Estimate for LDOS’ 2026 earnings has moved north over the past 60 days.
Image Source: Zacks Investment Research
LDOS stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).