Core Insights - Artificial intelligence is significantly transforming the defense sector, with both emerging companies like BigBear.ai and established firms like Leidos competing for federal contracts [1][2] - BigBear.ai is transitioning to a scalable AI platform model, while Leidos integrates AI into its existing services [2][9] BigBear.ai Overview - BigBear.ai is acquiring Ask Sage, a secure generative AI platform, which has over 100,000 users across 16,000 government teams, expected to drive $25 million in annual recurring revenue (ARR) by 2025 [4][8] - The company reported a record $456.6 million in cash and investments, enhancing its liquidity for strategic initiatives [5][8] - Despite a 20% year-over-year revenue decline due to lower Army program volumes and government shutdown impacts, BigBear.ai's backlog reached $376 million, indicating potential for future growth [6][7] Leidos Overview - Leidos reported $4.47 billion in Q3 revenue, a 7% increase year-over-year, with a total backlog of $47.7 billion [9][10] - The company secured several significant contracts, including a $2.2 billion classified intelligence award and a $540 million AI-enabled counterterrorism software contract [10] - Leidos is focusing on AI-driven mission software and digital modernization, embedding AI across various solutions [11][13] Stock Performance Comparison - BigBear.ai shares surged 180% over the past year, outperforming the broader technology sector and S&P 500 [14] - Leidos shares increased by 16.1%, slightly exceeding the S&P 500 but lagging behind the technology sector [15] Valuation Insights - BigBear.ai trades at a forward price-to-sales multiple of 15.53, significantly higher than Leidos' multiple of 1.37, reflecting market expectations for high growth [18] - Analyst estimates for BigBear.ai show a narrowing loss per share outlook, while Leidos' EPS estimates indicate stable growth [19][21] Investment Considerations - Leidos offers stability and consistent profitability, supported by a large backlog and expanding AI capabilities [25] - BigBear.ai presents greater near-term upside potential due to its transformation and strengthened liquidity position [25][26]

Core Viewpoint - Leidos Holdings (LDOS) was previously considered undervalued at a stock price of approximately $143 following their Q4 earnings release earlier this year, leading to a buy rating for the stock [1]. Company Analysis - The stock of Leidos Holdings was trading at about $143, indicating a minimal undervaluation at that time [1]. - The analysis is based on the company's Q4 earnings release, which provided insights into its financial performance [1]. Analyst Background - The analyst has a master's degree in Analytics from Northwestern University and a bachelor's degree in Accounting, with over 10 years of experience in the investment arena, starting as an analyst and progressing to a management role [1]. - Dividend investing is highlighted as a personal interest of the analyst, indicating a focus on income-generating investments [1].

Core Viewpoint - Leidos Holdings (LDOS) was previously considered undervalued at a stock price of approximately $143 following their Q4 earnings release earlier this year, leading to a buy rating for the stock [1]. Company Analysis - The stock of Leidos Holdings was trading at about $143, indicating a minimal undervaluation [1]. - The analysis is based on the company's Q4 earnings release, which provided insights into its financial performance [1]. Analyst Background - The analyst has a master's degree in Analytics from Northwestern University and a bachelor's degree in Accounting, with over 10 years of experience in the investment arena [1]. - The analyst has progressed from an analyst role to a management position, indicating a strong background in investment analysis [1]. - Dividend investing is highlighted as a personal interest of the analyst, suggesting a focus on income-generating investments [1].

Group 1: Walmart Inc. (NYSE: WMT) - Walmart reported better-than-expected third-quarter financial results on November 20, raising its fiscal year 2026 revenue and adjusted EPS outlook [1] - The company is experiencing growth in e-commerce and its membership model, with management providing strong forward guidance [1] - Walmart is set to transfer its listing from NYSE to Nasdaq, effective December 9 [1] Group 2: Vistra Corp. (NYSE: VST) - Vistra has seen a 25% pullback over the past few months, but analysts maintain an Outperform rating [2] - BMO Capital raised the price target for Vistra from $236 to $245, while Evercore ISI Group increased the price target from $237 to $243 [2] Group 3: Leidos Holdings, Inc. (NYSE: LDOS) - Leidos reported better-than-expected third-quarter results on November 4, with quarterly revenue growth of 7% year over year to $4.47 billion, surpassing the analyst consensus estimate of $4.28 billion [3] - The company also raised its full-year EPS guidance [3] Group 4: Zoom Communications Inc. (NASDAQ: ZM) - Zoom is scheduled to report quarterly earnings on Monday, with analysts expecting earnings of $1.44 per share, up from $1.38 per share in the previous year [4] - The consensus estimate for Zoom's quarterly revenue is $1.21 billion, compared to $1.18 billion a year earlier [4] Group 5: Price Action - Vistra shares fell 3% to close at $168.59 [6] - Leidos shares rose 0.5% to close at $186.49 [6] - Walmart shares fell 1.7% to settle at $105.32 [6] - Zoom shares gained 0.3% to close at $78.63 [6]

Core Insights - Leidos Holdings, Inc. is a technology and engineering firm focused on national security, defense, health, and civil markets, with a market capitalization of approximately $23.8 billion [1] Stock Performance - LDOS shares have outperformed the broader market, gaining 13.2% over the past 52 weeks and 29.5% year-to-date, compared to the S&P 500 Index's gains of 11% and 12.3% respectively [2] - While LDOS has lagged behind the Technology Select Sector SPDR Fund's 17% surge over the past year, it has outpaced XLK's 17.5% increase in 2025 [3] Financial Performance - The company reported record revenues of $4.5 billion for the third quarter, reflecting a 7% year-over-year increase, with non-GAAP EPS of $3.05, up 4% annually [4] - Leidos' total backlog increased by 5% year-over-year, indicating strong demand for its services [4] Strategic Initiatives - The "NorthStar 2030" strategy is focused on growth areas such as national security, mission software, and health services, benefiting from favorable macroeconomic conditions [5] - Analysts project a 14.8% year-over-year growth in EPS for fiscal 2025, expecting it to reach $11.72 [5] Analyst Ratings - The stock has a consensus "Moderate Buy" rating, with 15 analysts covering it: eight recommend "Strong Buy," one "Moderate Buy," and six suggest a "Hold" rating [6] - Jefferies recently raised its price target for LDOS to $230 from $215, maintaining a "Buy" rating after a strong quarterly performance [7]

Group 1 - Vista Corp has experienced a 25% pullback over the last few months, but remains an overweight position due to strong growth opportunities in the data center sector and energy bottlenecks in the ecosystem [1] - Lidos is positioned well to benefit from opportunities identified by the Department of War, indicating a favorable market environment for the company [2] - Walmart reported impressive earnings with expanding e-commerce and a growing membership model, alongside strong forward guidance from management [3] Group 2 - Zoom is expected to report a revenue increase of 3.1% and earnings growth of 4.1% on Monday, with any results exceeding these expectations likely to positively impact the stock [3]

Core Points - The company will host a live audio webcast on December 3, 2025, from 12:10 p.m. to 12:45 p.m. [1]

Core Insights - Starlab is positioned as the leading contender to replace the International Space Station (ISS), which is set for disposal after 2030, with significant international support and a strong coalition of partners [2][10] Company Overview - Starlab is led by Voyager Technologies and includes partners such as Hilton Worldwide, Northrop Grumman, Palantir, MDA Space, Airbus, and Mitsubishi, showcasing a diverse and robust coalition [3][4] - Recently, Leidos joined the Starlab team, bringing extensive experience in civil space and defense integration, which will enhance Starlab's capabilities in assembling and integrating the space station [4] Financial Backing - The coalition supporting Starlab boasts a total market capitalization of approximately $890.9 billion and annual revenue of about $250.5 billion, indicating substantial financial resources [7] - Key partners include: - Voyager Space: Market Cap $1.4 billion, Revenue $158 million - MDA Space: Market Cap $2.1 billion, Revenue $965 million - Hilton Worldwide: Market Cap $63.8 billion, Revenue $4.9 billion - Northrop Grumman: Market Cap $80.3 billion, Revenue $40.9 billion - Mitsubishi Corporation: Market Cap $89.3 billion, Revenue $116.3 billion - Airbus: Market Cap $192.5 billion, Revenue $83.4 billion - Palantir Technologies: Market Cap $461.5 billion, Revenue $3.9 billion [7] Competitive Landscape - Starlab faces competition from other coalitions, including Blue Origin's Orbital Reef, which is financially supported by Jeff Bezos but currently unprofitable [6][8] - Starlab's financial strength and broad coalition make it a strong candidate to secure NASA contracts and complete the next ISS [9][10]

Core Insights - Leidos (LDOS) stock has increased by over 33% since June, marking it as one of the best investment ideas for the year [1] Company Performance - The third quarter performance of Leidos has been highlighted, indicating strong growth and positive market reception [1]

Core Insights - Leidos (LDOS) stock has increased by over 33% since June, marking it as one of the best investment ideas for the year [1] Company Performance - The third quarter performance of Leidos has been highlighted, indicating strong growth and positive market reception [1]