Why Leidos (LDOS) is a Top Value Stock for the Long-Term

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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and 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 sits at a Zacks Rank #2 (Buy), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Aerospace - Defense industry's P/E of 16.8X, shares of Leidos are trading at a forward P/E of 15.2X. LDOS also has a PEG Ratio of 1.9, a Price/Cash Flow ratio of 12.5X, and a Price/Sales ratio of 1X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.01 to $7.03 per share. LDOS has an average earnings surprise of 11.5%.

Investors should take the time to consider LDOS for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report

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