Reasons to Include Leidos Stock in Your Portfolio Right Now

Core Insights - Leidos Holdings, Inc. (LDOS) presents a strong investment opportunity due to rising earnings estimates, robust return on equity (ROE), a solid backlog, and consistent shareholder returns [1] Growth Outlook & Surprise History - The Zacks Consensus Estimate for LDOS' 2025 earnings per share (EPS) has increased by 2.8% to $11.07 over the past 30 days [2] - The total revenue estimate for 2025 stands at $17.15 billion, indicating a growth of 2.9% [2] - LDOS has a long-term earnings growth rate of 7.7% and has surpassed earnings estimates in the last four quarters with an average earnings surprise of 25.13% [2] Return on Equity - LDOS has a return on equity (ROE) of 33.57%, significantly higher than the industry average of 20.01%, indicating effective fund utilization [3] Solvency & Liquidity Position - The times interest earned (TIE) ratio for LDOS at the end of Q2 2025 was 10.3, suggesting the company can meet its interest obligations comfortably [4] - The current ratio was 1.62, indicating the company can meet its short-term liabilities without difficulty [4] Rising Backlog - Leidos has secured significant contract wins from the Pentagon and other U.S. allies, contributing to a backlog of $46.21 billion as of July 4, 2025, up from $41.55 billion a year earlier, enhancing revenue visibility [5][8] Return to Shareholders - Leidos has consistently increased shareholder value through dividends, currently paying a quarterly dividend of 40 cents per share, resulting in an annualized dividend of $1.60 and a dividend yield of 0.89%, surpassing the sector average of 0.61% [6] Stock Performance - Over the past six months, LDOS shares have increased by 40.4%, while the industry has seen a decline of 12.7% [9]