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Stifel Says Leidos Is 'The Terminator' Stock During Coronavirus Sell-Off

Jayson Derrick

Government contractor Leidos Holdings Inc (NYSE: LDOS) is "The Terminator" of stocks to buy at a time when the market is selling off amid coronavirus concerns, according to Stifel. 

What Happened

Leidos is an information technology company that has heavy exposure to the U.S. defense and health care sectors, according to CNBC.

At a time when investors have outlook-related concerns, Leidos' recent high-profile contract wins, including a $7.7-billion contract with the U.S. Navy, are "not an anomaly," according to the sell-side firm. 

"We see Leidos' as positioned to benefit should the outbreak lead to a broader re-evaluation of public health preparedness given its positioning within the CDC, NIH, and Defense Health Agency," Stifel analysts said.

JPMorgan analysts included Leidos stock in their "COVID-19 Outperformers Basket."

Why It's Important

More than half of Wall Street analysts have a bullish rating on Leidos and none recommend investors sell the stock, according to FactSet, CNBC said. 

While shares are not immune to the broader sell-off, the stock is still up close to 7% for 2020. 

Wells Fargo analysts similarly said Leidos' exposure to the federal government should offer "strong visibility" in terms of accelerating revenue growth for at least the next two years, according to CNBC.

The stock was down 7.25% at $98.01 at the time of publication Monday. 

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Latest Ratings for LDOS

Date Firm Action From To
Mar 2020 Wells Fargo Upgrades Equal-Weight Overweight
Mar 2020 Stifel Nicolaus Upgrades Hold Buy
Feb 2020 JP Morgan Maintains Neutral

View More Analyst Ratings for LDOS
View the Latest Analyst Ratings

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