Investors looking for stocks in the Computers - IT Services sector might want to consider either Leidos (LDOS) or Dynatrace (DT) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings ...

Key Takeaways Leidos Holdings is up 3.1% YTD, outperforming the SLeidos Holdings Inc. (LDOS) shares have rallied an impressive 3.1% in the year-to-date period, outperforming the S&P 500’s return of 0.1%. The company, however, underperformed the Zacks Aerospace-Defense industry’s growth of 17.5% and the broader Zacks Aerospace sector’s appreciation of 18.6%. Image Source: Zacks Investment ResearchOther industry players, such as RTX Corp. (RTX) and Northrop Grumman Corp. (NOC) , also performed impressively, w ...

Core Viewpoint - Leidos (LDOS) has experienced a bearish trend recently, losing 6.6% over the past two weeks, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottom in the stock price, characterized by a small candle body and a long lower wick, suggesting that bears may be losing control [4][5]. - This pattern typically forms during a downtrend when the stock opens lower, makes a new low, but then finds support and closes near its opening price, indicating a possible shift in momentum [4][5]. Fundamental Analysis - There is rising optimism among Wall Street analysts regarding the future earnings of Leidos, which supports the potential for a trend reversal [2][7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 1.6%, indicating that analysts expect better earnings than previously predicted [8]. - Leidos currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically correlates with outperformance in the market [9].

Group 1: Acquisition Details - Leidos Holdings, Inc. (LDOS) acquired Kudu Dynamics for approximately $300 million in cash, enhancing its focus on AI-powered offensive cyber operations and vulnerability research [1] - The acquisition is expected to improve LDOS's customer base and product offerings, particularly in AI-enabled cyber capabilities for defense, intelligence, and homeland security clients [2] Group 2: Strategic Alignment - The acquisition aligns with Leidos' strategy to expand its offensive cyber technology capabilities through AI-driven innovation, reinforcing its commitment to delivering advanced cyber tools [3] - Amid rising global cybersecurity threats, the acquisition positions Leidos to capitalize on increasing demand for advanced cyber defense solutions, potentially boosting sales [4] Group 3: Industry Context - The defense industry is experiencing a surge in mergers and acquisitions due to cost-reduction initiatives and the need to diversify portfolios amid intensifying competition [5] - Other defense companies, such as TransDigm Group, HEICO Corporation, and Teledyne Technologies, have also engaged in recent acquisitions to enhance their market positions [6][7][8] Group 4: Stock Performance - Over the past three months, Leidos shares have increased by 14.7%, outperforming the industry growth of 10.9% [9] - Leidos currently holds a Zacks Rank 2 (Buy), indicating positive market sentiment [10]

Leidos' extensive current AI-enabled cyber offerings arm users with the rapid capability and scale needed to automate vulnerability detection, enhance novel defenses, neutralize attacker advantages and evade adversary defenses. Acquiring Kudu Dynamics will accelerate Leidos' strategy for AI-enabled offensive cyber, electromagnetic spectrum operations and vulnerability research. Founded in 2013, Kudu Dynamics rapidly has grown its work across the Department of Defense, leading the industry in automated targe ...

Group 1 - Leidos and Saudi Arabia's National Security Services Company (SAFE) have signed a memorandum of understanding to collaborate on security screening technology for airports and other ports of entry in Saudi Arabia [1][2] - The agreement aims to modernize Saudi Arabia's security screening infrastructure, enhancing threat detection capabilities including people and baggage scanners, explosive detection devices, and rapid screening of cargo and vehicles [1] - The partnership was announced during the U.S-Saudi Investment Forum, coinciding with U.S. President Donald Trump's visit to Saudi Arabia [2] Group 2 - Leidos is a leader in the industry and technology sector, serving government and commercial customers, with reported annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025 [4]

Leidos Holdings, Inc. (LDOS) , with rising earnings estimates, robust ROE, a solid backlog and shareholder-friendly initiatives, offers a great investment opportunity in the Zacks Aerospace Defense industry.Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock an attractive investment pick at the moment.Growth Forecast & Surprise History of LDOSThe Zacks Consensus Estimate for LDOS’ 2025 and 2026 earnings per share (EPS) has increased 1.5% and 0.7%, respectively, over the past 30 days.The Zack ...

It's a dangerous world, and this is driving up defense stock prices. For new investors looking to buy, this is not a good thing.It's not always fun being right -- especially when you write about defense stocks, and you have to tell people that defense stocks are too expensive to invest in right now.After reviewing the skyrocketing prices of large defense aerospace and contractors last year, I concluded that defense stocks cost too much. Checking back on valuations after prices had fallen in January, I had t ...

Core Viewpoint - Leidos Holdings, Inc. reported strong financial performance in Q1 2025, with adjusted earnings per share significantly exceeding expectations and showing substantial year-over-year growth [1][2]. Financial Performance - Adjusted earnings per share for Q1 2025 were $2.97, surpassing the Zacks Consensus Estimate of $2.47 by 20.2% and increasing 29.7% from $2.29 in the prior-year quarter [1] - GAAP earnings were $2.77 per share, up from $2.07 in the same quarter last year [1] - Total revenues reached $4.25 billion, exceeding the Zacks Consensus Estimate of $4.08 billion by 4% and reflecting a 6.8% year-over-year increase [3] Operational Statistics - Cost of revenues increased by 4.5% year over year to $3.49 billion [5] - Adjusted operating income rose to $565 million from $456 million in the previous year [5] - Adjusted operating margin improved to 13.3% compared to 11.5% in the prior-year period [5] Backlog and Segment Performance - Total backlog increased to $46.30 billion from $43.56 billion at the end of Q4 2024, with $7.33 billion funded [4] - National Security and Digital segment revenues grew 4.7% year over year to $1.88 billion, while adjusted operating income slightly declined to $190 million [6] - Health & Civil segment revenues rose 7.7% to $1.29 billion, with adjusted operating income increasing to $305 million [7] - Commercial & International segment revenues reached $568 million, up 11.6% year over year, with adjusted operating income at $48 million [8] - Defense Systems segment revenues were $508 million, up 7.2%, with adjusted operating income increasing to $46 million [10] Financial Position - Cash and cash equivalents totaled $842 million, a slight decrease from $849 million at the beginning of the year [11] - Long-term debt increased to $5.01 billion from $4.05 billion [11] - Net cash flow from operating activities was $58 million, down from $113 million a year ago [11] 2025 Guidance - Leidos reaffirmed its 2025 guidance, expecting adjusted earnings in the range of $10.35-$10.75 per share, with the Zacks Consensus Estimate at $10.51 [12] - The company anticipates revenues between $16.90-$17.30 billion, with the Zacks Consensus Estimate at $17.09 billion [12] - Expected cash flow from operating activities for 2025 is approximately $1.45 billion [13]

Financial Performance - Leidos reported revenues of $4,245 million for the three months ended April 4, 2025, representing a 6.8% increase from $3,975 million for the same period in 2024[93]. - Operating income increased by 27.7% to $530 million for the three months ended April 4, 2025, compared to $415 million for the same period in 2024[93]. - Net income attributable to Leidos common stockholders was $363 million, a 27.8% increase from $284 million in the prior year[93]. - The Health & Civil segment saw a revenue increase of 7.7% to $1,291 million, with operating income rising by 34.7% to $299 million[96]. - The Defense Systems segment reported revenues of $508 million, a 7.2% increase, with operating income up 61.9% to $34 million[98]. - Revenues for the three months ended April 4, 2025, were $2,698 million, with an operating income of $235 million and a net income attributable to common stockholders of $32 million[126]. Government Contracts - The company generated approximately 87% of total revenues from U.S. government contracts, indicating a strong reliance on government spending[88]. Bookings and Backlog - Net bookings for the three months ended April 4, 2025, were estimated at $2.1 billion, down from $3.8 billion in the same period in 2024[106]. - Total backlog as of April 4, 2025, was $46,296 million, which includes $7,329 million in funded backlog[106]. Cash Flow and Liquidity - During the three months ended April 4, 2025, net cash provided by operating activities was $58 million, a decrease of $55 million compared to $113 million in the prior year quarter[117]. - Net cash used in investing activities increased by $10 million to $22 million for the three months ended April 4, 2025, primarily due to higher capital expenditures of $5 million[118]. - Net cash used in financing activities decreased by $118 million to $110 million for the three months ended April 4, 2025, mainly due to a net increase of $465 million in cash inflows from debt issuance[119]. - The company anticipates meeting liquidity needs for the next 12 months through cash generated from operations and available cash balances[116]. Debt and Liabilities - As of April 4, 2025, Leidos had $842 million in cash and cash equivalents and outstanding debt of $5.1 billion[108][109]. - Long-term debt, net of current portion, increased to $5,014 million as of April 4, 2025, compared to $4,052 million on January 3, 2025[125]. - Total liabilities increased to $11,416 million as of April 4, 2025, from $10,868 million on January 3, 2025[125]. Tax and Market Risk - The effective tax rate for the three months ended April 4, 2025, was 23.6%, an increase from 23.1% in the prior year[103]. - There were no material changes in market risk exposure compared to the previous annual report[131]. Stock Repurchase - The company made open market repurchases of common stock totaling $150 million during the three months ended March 29, 2024[115].