LDOS vs. HWM: Which Stock Is the Better Value Option?

Company Comparison - Leidos (LDOS) has a Zacks Rank of 1 (Strong Buy), indicating strong earnings estimate revision activity and an improving analyst outlook [3] - Howmet (HWM) has a Zacks Rank of 3 (Hold), suggesting less impressive earnings estimate revision activity compared to LDOS [3] - LDOS has a forward P/E ratio of 16.74, significantly lower than HWM's forward P/E of 44.63, indicating LDOS is more undervalued [5] - LDOS has a PEG ratio of 1.13, which is lower than HWM's PEG ratio of 1.60, suggesting LDOS offers better value considering earnings growth [5] - LDOS has a P/B ratio of 4.73, much lower than HWM's P/B ratio of 10.87, further supporting LDOS as a more undervalued option [6] Valuation Metrics - The Value category evaluates companies using key metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - LDOS has a Value grade of B, while HWM has a Value grade of D, indicating LDOS is the superior value option based on valuation figures [7] Investment Strategy - A strong Zacks Rank combined with a high grade in the Value category of the Style Scores system is a proven strategy for identifying value stocks [2]