Company Performance - Leidos (LDOS) closed at $133.71, reflecting a +1.13% change from the previous session, outperforming the S&P 500's gain of 1.12% [1] - Over the last month, Leidos shares decreased by 6.86%, underperforming the Aerospace sector's loss of 3.33% and the S&P 500's loss of 4.13% [1] Upcoming Earnings - Leidos is expected to report an EPS of $2.45, indicating a 6.99% growth compared to the same quarter last year [2] - Revenue is projected to be $4.08 billion, showing a 2.62% increase compared to the year-ago quarter [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $10.44 per share and revenue at $17.09 billion, representing changes of +2.25% and +2.59% from the prior year, respectively [3] Analyst Projections - Recent shifts in analyst projections for Leidos are important to monitor, as positive estimate revisions indicate optimism about the company's business outlook [4] - Estimate alterations are linked to stock price performance, with the Zacks Rank system providing a functional rating based on these changes [5] Zacks Rank and Valuation - Leidos currently holds a Zacks Rank of 2 (Buy), with a Forward P/E ratio of 12.66, indicating a discount compared to the industry's Forward P/E of 18.04 [6] - The Zacks Consensus EPS estimate has shifted 2.04% upward over the past month [6] Industry Metrics - Leidos has a PEG ratio of 1.71, compared to the Aerospace - Defense industry's average PEG ratio of 1.78 [7] - The Aerospace - Defense industry has a Zacks Industry Rank of 88, placing it in the top 36% of all industries [7][8]

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks across various market conditions, utilizing established valuation metrics to assess potential investments [2][3]. Company Overview: Leidos (LDOS) - Leidos currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock has a P/E ratio of 12.22, significantly lower than the industry average of 22.45, suggesting it may be undervalued [4]. - LDOS's Forward P/E has fluctuated between 12.02 and 20.34 over the past 52 weeks, with a median of 16.45 [4]. Valuation Metrics - The PEG ratio for LDOS is 1.65, which is lower than the industry average of 1.85, indicating favorable growth expectations relative to its price [5]. - LDOS has a P/B ratio of 3.87, compared to the industry average of 4.48, suggesting it is attractively priced based on its book value [6]. - The P/S ratio for LDOS stands at 1.04, which is lower than the industry average of 1.57, reinforcing the notion of potential undervaluation [7]. - The P/CF ratio for LDOS is 11.21, significantly lower than the industry average of 28.18, indicating strong cash flow relative to its market value [8]. Investment Outlook - The combination of these valuation metrics suggests that LDOS is likely undervalued at present, especially when considering its strong earnings outlook [9].

Core Insights - Zacks Premium provides various tools to enhance stock market investment confidence and knowledge [1][2] - The Zacks Style Scores are designed to complement the Zacks Rank, helping investors identify stocks likely to outperform the market in the short term [3][8] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better performance potential [4] - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score [4][5][6][7] Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score assesses stocks based on price trends and earnings outlook changes, helping investors capitalize on upward or downward price movements [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investment decisions, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988 [8][9] Stock Highlight: Leidos Holdings, Inc. (LDOS) - Leidos is a global leader in science and technology, serving defense, intelligence, civil, and health markets, with core capabilities in cybersecurity, data analytics, and systems engineering [13] - Leidos holds a 2 (Buy) Zacks Rank and a VGM Score of A, with a Value Style Score of A due to a forward P/E ratio of 12.37 [14] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.12 to $10.44 per share, with an average earnings surprise of 28.3% [14][15]

Core Insights - Leidos and SeeTrue are partnering to enhance airport security and customs screenings using AI algorithms for detecting prohibited items [1][2][3] - The collaboration aims to integrate Leidos' Trusted Mission AI approach with SeeTrue's advanced threat detection technology [2][3] - Focus areas for the partnership include developing algorithms for currency and narcotics detection, which will be implemented through Leidos' ClearScan CT scanner [2] Company Overview - Leidos is a technology leader with approximately 48,000 global employees and reported annual revenues of about $16.7 billion for the fiscal year ending January 3, 2025 [5] - SeeTrue specializes in AI software for threat detection and operates in multiple global locations including Tel Aviv, London, New York, and Amsterdam [6]

Core Viewpoint - Leidos (LDOS) is experiencing significant selling pressure, with a 12.7% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analysts predicting better earnings than previously expected [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - LDOS has an RSI reading of 27.46, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that LDOS will report improved earnings, with a 3.2% increase in the consensus EPS estimate over the last 30 days [6]. - An upward trend in earnings estimate revisions typically correlates with price appreciation in the near term [6]. Group 3: Analyst Ratings - LDOS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [7].

Core Viewpoint - Leidos Holdings, Inc. announced the expiration of its wholly-owned subsidiary Leidos, Inc.'s cash tender offer for its outstanding 3.625% Senior Notes due 2025, with 53.48% of the notes validly tendered by the expiration time [1][3]. Group 1: Tender Offer Details - The tender offer for the 2025 Notes expired at 5:00 p.m. on February 20, 2025, with $267,393,000 of the $500 million aggregate principal amount validly tendered [1]. - Payment for the validly tendered 2025 Notes will occur on February 25, 2025, the settlement date [1]. - Holders of the 2025 Notes who validly tendered their notes will receive $998.30 for each $1,000 principal amount, plus accrued interest from the last payment date [3]. Group 2: Company Overview - Leidos is a leader in the industry and technology sector, serving government and commercial customers with innovative digital and mission solutions [6]. - The company is headquartered in Reston, Virginia, and employs approximately 48,000 people globally [6]. - For the fiscal year ending January 3, 2025, Leidos reported annual revenues of approximately $16.7 billion [6]. Group 3: Dealer Managers and Agents - Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and U.S. Bancorp Investments, Inc. are acting as Dealer Managers for the tender offer [4]. - Global Bondholder Services Corporation is serving as the depositary agent and information agent for the tender offer [4].

Core Viewpoint - Leidos Holdings, Inc. announced the pricing terms for a cash tender offer to purchase all outstanding 3.625% Senior Notes due 2025, with the offer set to expire on February 20, 2025 [1][4]. Summary by Sections Tender Offer Details - The tender offer is for the 3.625% Senior Notes due 2025, with a total principal amount of $500 million [3]. - The consideration for each $1,000 principal amount of the 2025 Notes validly tendered is $998.30, based on a fixed spread and the yield of the U.S. Treasury Reference Security [2][3]. - Holders will also receive accrued and unpaid interest from November 15, 2024, up to the expected settlement date of February 25, 2025 [3]. Conditions and Expiration - The tender offer will expire at 5:00 p.m. New York City time on February 20, 2025, unless extended [4]. - Holders must validly tender their notes by the expiration time to receive the cash consideration and accrued interest [4]. Withdrawal Rights - Holders can withdraw their tendered notes at any time before the expiration time or within 10 business days if the offer is extended [5]. Financing Conditions - The tender offer is contingent upon Leidos successfully completing an offering of new senior notes to generate sufficient net proceeds for the repurchase of the 2025 Notes [6]. Management and Contacts - Citigroup, J.P. Morgan, and U.S. Bancorp are acting as Dealer Managers for the tender offer, with Global Bondholder Services Corporation serving as the depositary agent [7].

Core Points - Leidos has promoted Jason Albanese to corporate executive vice president and chief growth officer, effective March 3, 2025, succeeding Gerry Fasano who will retire on April 4, 2025 [1][2] - Albanese has a strong background in growth, business development, program management, and engineering, having joined Leidos in 2017 after the merger with Lockheed Martin [3] - The company reported record financial performance for 2024, including its best fourth quarter book-to-bill ratio, indicating strong demand for its solutions [2] Company Overview - Leidos is a leader in industry and technology, serving government and commercial customers with innovative digital and mission solutions [4] - The company is headquartered in Reston, Virginia, and has approximately 48,000 global employees [4] - Leidos reported annual revenues of approximately $16.7 billion for the fiscal year ended January 3, 2025 [4] Strategic Direction - Albanese will be instrumental in implementing the company's new NorthStar 2030 strategy, which focuses on specific growth pillars aligned with customer needs and market profitability [2] - The strategy aims to differentiate Leidos as a trusted partner, enhancing customer outcomes [2]

Group 1 - Leidos (LDOS) has experienced a significant decline of 15.8% over the past four weeks, but it is now in oversold territory, indicating a potential trend reversal [1] - The Relative Strength Index (RSI) for LDOS is currently at 29.2, suggesting that the heavy selling pressure may be exhausting, which could lead to a price rebound [5] - There is a strong consensus among Wall Street analysts that LDOS will report better earnings than previously predicted, with a 3.2% increase in the consensus EPS estimate over the last 30 days [6] Group 2 - The Zacks Rank for LDOS is 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, indicating a strong potential for a turnaround in the near term [7]

Leidos (LDOS) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changing earning ...