Here's Why Leidos (LDOS) is a Strong Value Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Leidos (LDOS)
Founded in 1969, Delaware-based Leidos Holdings, Inc. is a global science and technology leader that serves the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization; operations and logistics; sensors, collection and phenomenology; software development; and systems engineering. Outside the United State, the company’s international customers include foreign governments and their agencies, primarily located in the United Kingdom, the Middle East and Australia.
LDOS is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 14.8X for the current fiscal year compared to the Aerospace - Defense industry's P/E of 16.6X. Additionally, LDOS has a PEG Ratio of 1.8 and a Price/Cash Flow ratio of 11.4X. Value investors should also note LDOS' Price/Sales ratio of 0.9X.
A company's earnings performance is important for value investors as well. For fiscal 2023, eight analysts revised their earnings estimate higher in the last 60 days for LDOS, while the Zacks Consensus Estimate has increased $0.34 to $6.98 per share. LDOS also holds an average earnings surprise of 11.5%.
LDOS should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report
