Why Is Leidos (LDOS) Down 6.7% Since Last Earnings Report?

Core Viewpoint - Leidos has experienced a decline of approximately 6.7% in share price over the past month, underperforming the S&P 500, raising questions about its upcoming earnings release and potential for recovery [1]. Earnings Estimates - Estimates for Leidos have trended downward over the past month, indicating a negative sentiment among analysts [2]. VGM Scores - Leidos holds an average Growth Score of C and a similar score for momentum, while achieving a B grade for value, placing it in the top 40% for this investment strategy. The overall aggregate VGM Score for the stock is B, which is significant for investors not focused on a single strategy [3]. Outlook - The downward trend in estimates for Leidos appears promising in terms of magnitude, and the company holds a Zacks Rank of 2 (Buy), suggesting an expectation of above-average returns in the coming months [4]. Industry Performance - Leidos is part of the Zacks Computers - IT Services industry. A peer, Cognizant, has seen a 2.3% increase in share price over the past month. Cognizant reported revenues of $5.12 billion for the last quarter, reflecting a year-over-year growth of 7.5% [5]. Cognizant's Earnings Expectations - For the current quarter, Cognizant is projected to report earnings of $1.25 per share, representing a 6.8% increase from the previous year. The Zacks Consensus Estimate for Cognizant has remained unchanged over the last 30 days, and it also holds a Zacks Rank of 2 (Buy) with a VGM Score of B [6].