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Based in Reston, Virginia, Leidos Holdings, Inc. (LDOS) provides services and solutions in the defense, intelligence, civil, and health markets. Valued at a market cap of $20.8 billion, the company’s core capabilities include providing solutions in the fields of cybersecurity, data analytics, enterprise IT modernization, operations and logistics, and collection and phenomenology.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and Leidos Holdings fits this criterion perfectly. The company distinguishes itself as a leader in cybersecurity for the federal government, employing nearly 3,000 cybersecurity professionals, and is renowned for its innovative problem-solving solutions in its areas of interest.
Shares of LDOS are trading 2.8% below their 52-week high of $159.10, which they reached on Sep. 3. The tech company has gained 7.5% over the past three months, surpassing the broader iShares U.S. Technology ETF’s (IYW) 2.2% decline over the same time frame.
In the longer term, LDOS stock is up 42.9% on a YTD basis, surpassing IYW’s 22.3% gains. Shares of LDOS have rallied 65.1% over the past 52 weeks, significantly outperforming IYW’s 38.6% returns over the same time frame.
To confirm its bullish trend, LDOS has been trading above its 200-day moving average since late October last year and has remained above its 50-day moving average since mid-August.
LDOS released its Q2 earnings report on Jul. 30. The company reported adjusted earnings of $2.63 per share, which surpassed the Wall Street estimates of $2.26 per share. Its revenues of $4.13 billion also topped the estimates of $4.04 billion. However, shares of the company declined 4.6% after its earnings release. Leidos expects full-year earnings in the range of $8.60 to $9 per share.
LDOS has lagged behind its rival, CACI International Inc.’s (CACI) 50.4% gains on a YTD basis but outpaced CACI’s 52% returns over the past 52 weeks. Given that LDOS outperformed its industry peers, analysts remain optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 14 analysts covering it, and the mean price target of $169.75 suggests a premium of 9.7% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
