Core Insights - Leidos Holdings (NYSE: LDOS) has seen its shares increase by nearly 20% since the initial buy recommendation was published, indicating strong market confidence in the company's growth and profitability [1]. Company Performance - The company continues to demonstrate robust growth and high profitability, which is a positive indicator for potential investors [1].

Core Insights - Stock markets are reaching new records as investor confidence grows regarding potential Federal Reserve rate cuts due to a softening labor market and rising inflation from tariffs [1] Company Summaries - **Halozyme Therapeutics, Inc. (HALO)**: A biopharmaceutical company focused on oncology treatments and drug delivery technology. Expected earnings growth of 46.1% in 2025, with a 9.1% increase in broker ratings over the past four weeks. Currently holds a Zacks Rank 1 [7][8][10] - **Leidos Holdings, Inc. (LDOS)**: A global leader in science and technology serving defense, intelligence, civil, and health markets. Projected earnings growth of 9.2% in 2025, with a 5.6% increase in broker ratings over the past four weeks. Currently holds a Zacks Rank 2 [9][11][10] - **TransUnion (TRU)**: A leading provider of risk and information solutions. Expected earnings growth of 4.1% in 2025, with a 5% increase in broker ratings over the past four weeks. Currently holds a Zacks Rank 2 [11][12][10]

Core Insights - The article discusses the importance of a hybrid investment strategy, specifically GARP (Growth at a Reasonable Price), which combines elements of both value and growth investing to navigate market uncertainties [1][2][3] GARP Investment Strategy - GARP investing prioritizes the price/earnings growth (PEG) ratio, which relates a stock's P/E ratio to its future earnings growth rate [5][6] - A lower PEG ratio, ideally below 1, indicates both undervaluation and future growth potential [6] - The article highlights that while P/E ratios can indicate discounts, the PEG ratio adds a growth perspective, making it a more comprehensive metric for investors [6][7] Screening Criteria for GARP Investments - Successful GARP investments should meet several criteria, including: - PEG Ratio less than the industry median - P/E Ratio (using F1) less than the industry median - Zacks Rank of 1 (Strong Buy) or 2 (Buy) - Market Capitalization greater than $1 billion - Average 20-Day Volume greater than 50,000 - Percentage Change F1 Earnings Estimate Revisions greater than 5% - Value Score of less than or equal to B [8][9][10] Featured GARP Stocks - **Halozyme Therapeutics (HALO)**: A biopharmaceutical company with a discounted PEG and an expected growth rate of 31% [11][12] - **Phibro Animal Health (PAHC)**: A diversified animal health company with a discounted PEG and P/E, and a long-term growth rate of 15% [13][14] - **Leidos (LDOS)**: A global science and technology leader with a discounted PEG and P/E, and a historical growth rate of 14.6% [15][16] - **PDD Holdings Inc. (PDD)**: A multinational commerce group with a discounted PEG and P/E, and a long-term expected growth rate of 9.7% [17][18]

Core Insights - Leidos has introduced Sea Dagger, a next-generation Commando Insertion Craft designed for the Royal Navy, which combines speed, range, vehicle delivery, and modular mission systems into a single platform, setting a new standard in maritime autonomy and operational agility [1][3] Group 1: Product Development - Sea Dagger is developed under the UK Commando Force programme, aiming to deliver 24 medium surface insertion craft for deploying Commando Strike teams and other tactical platforms from long range [2] - The craft can exceed speeds of 40 knots and is a result of collaboration between Leidos Naval Architects, military experts, and the Royal Navy, leveraging over 30 years of fast-craft expertise [3] Group 2: Technological Features - Sea Dagger incorporates advanced technologies such as Trusted Mission AI, autonomous systems, and integrated weaponry, focusing on operational resilience, readiness, and maintainability [3] - The design addresses challenges faced by specialized units in coastal and shallow-water environments, combining naval architecture with high-tech sensors and command-and-control capabilities [5] Group 3: Strategic Alignment - The development of Sea Dagger aligns with AUKUS Pillar 2 maritime autonomy objectives and the UK Strategic Defence Review, enhancing the UK Commando Force's ability to respond to modern threats [4] - The initiative reflects a commitment to equipping military forces with resilient, future-ready platforms that can adapt to the complexities of modern warfare [6] Group 4: Company Overview - Leidos is a leader in industry and technology, serving government and commercial customers with innovative digital and mission solutions, reporting annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025 [8]

Core Insights - Leidos (LDOS) is currently viewed as a more attractive investment compared to ServiceNow (NOW) for value investors due to its stronger earnings outlook and better valuation metrics [3][6]. Valuation Metrics - Leidos has a forward P/E ratio of 16.22, significantly lower than ServiceNow's forward P/E of 54.27, indicating that LDOS may be undervalued [5]. - The PEG ratio for Leidos is 2.11, while ServiceNow's PEG ratio is 2.28, suggesting that LDOS offers a better balance between price and expected earnings growth [5]. - Leidos has a P/B ratio of 4.93 compared to ServiceNow's P/B of 17.34, further highlighting the relative undervaluation of LDOS [6]. Investment Ratings - Leidos holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while ServiceNow has a Zacks Rank of 3 (Hold), suggesting a less favorable outlook [3][6]. - The Value grade for Leidos is B, whereas ServiceNow has received an F, reinforcing the notion that LDOS is the superior value option at this time [6].

Key Takeaways Leidos Holdings, Inc. (LDOS) , with rising earnings estimates, robust ROE, a solid backlog and valuable return to its shareholders, offers a great investment opportunity in the Zacks Computers IT Services industry. Let's focus on the reasons that make this Zacks Rank #2 (Buy) stock an attractive investment pick at the moment. Growth Outlook & Surprise History of LDOS The Zacks Consensus Estimate for LDOS' 2025 earnings per share (EPS) has increased 2.8% to $11.07 in the past 30 days. The Zacks ...

Company Overview - Leidos Holdings, Inc. is a global science and technology leader founded in 1969, serving defense, intelligence, civil, and health markets [11] - The company specializes in cybersecurity, data analytics, enterprise IT modernization, operations and logistics, sensors, software development, and systems engineering [11] Investment Ratings - Leidos is currently rated 2 (Buy) on the Zacks Rank, indicating a favorable investment outlook [12] - The company has a VGM Score of A, suggesting strong overall performance across value, growth, and momentum metrics [12] Performance Metrics - Leidos has a Momentum Style Score of B, with shares increasing by 9.3% over the past four weeks [12] - Five analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate rising by $0.37 to $11.07 per share [12] - The company boasts an average earnings surprise of +25.1%, indicating strong performance relative to expectations [12] Investment Considerations - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, Leidos is recommended for investors' consideration [13]

Core Viewpoint - Investors are evaluating Leidos (LDOS) and ServiceNow (NOW) for potential undervalued stock opportunities, with LDOS currently appearing as the more favorable option based on various valuation metrics [1][7]. Valuation Metrics - LDOS has a forward P/E ratio of 16.12, significantly lower than NOW's forward P/E of 50.67, indicating that LDOS may be undervalued relative to its earnings potential [5]. - The PEG ratio for LDOS is 2.10, while NOW's PEG ratio is slightly higher at 2.13, suggesting that LDOS offers a better balance between price and expected earnings growth [5]. - LDOS has a P/B ratio of 4.86 compared to NOW's P/B of 16.19, further supporting the argument that LDOS is more attractively valued [6]. Zacks Rank and Value Grades - LDOS holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to recent estimate revisions, while NOW has a Zacks Rank of 3 (Hold) [3]. - In terms of value grades, LDOS has a Value grade of B, whereas NOW has a Value grade of F, highlighting LDOS's stronger position in terms of value investing metrics [6]. Conclusion - Based on stronger estimate revision activity and more attractive valuation metrics, LDOS is positioned as the superior choice for value investors compared to NOW [7].

Group 1 - Leidos (LDOS) is currently outperforming its peers in the Computer and Technology sector, with a year-to-date return of 26.3% compared to the sector average of 14.3% [4] - The Zacks Rank for Leidos is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions, with a 7% increase in the consensus estimate for full-year earnings over the past 90 days [3] - Leidos belongs to the Computers - IT Services industry, which has seen an average loss of 16.8% this year, further highlighting its strong performance relative to its industry [5] Group 2 - The Computer and Technology sector includes 605 individual stocks and is currently ranked 5 in the Zacks Sector Rank [2] - Another stock in the sector, Crexendo (CXDO), has also shown strong performance with a year-to-date return of 15.7% and a Zacks Rank of 2 (Buy) [4][5] - The Internet - Services industry, to which Crexendo belongs, has a year-to-date increase of 8.3% and is ranked 97 among 34 stocks [6]

Group 1 - Leidos has achieved Trusted Secure Enclave (TSE) Vetted Partner status from Amazon Web Services (AWS), enhancing its capabilities in secure information sharing across agencies and allied nations, particularly in relation to AUKUS Pillar 2 [1][3] - The Leidos Secure Environment (LSE) is a cloud-based platform that facilitates secure collaboration for sensitive workloads and data across multiple organizations and international teams [2][3] - This designation validates Leidos' leadership in developing secure cloud architectures for complex missions, supporting rapid and secure infrastructure deployment while maintaining high standards of verification and compliance [3][5] Group 2 - AUKUS is a trilateral security partnership involving Australia, the United Kingdom, and the United States, focusing on defense cooperation and advanced military technology sharing [4] - The partnership has two main pillars: Pillar 1 involves Australia acquiring nuclear-powered submarines, while Pillar 2 emphasizes collaboration on advanced technologies such as artificial intelligence and cyber capabilities [4] - Leidos, headquartered in Reston, Virginia, reported annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025, and employs around 47,000 people globally [5]