The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Leidos (LDOS) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.Leidos is one of 603 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sec ...

Accessibility StatementSkip Navigation The B220-HT is a desktop ETD system that uses advanced analysis technology to deliver rapid, simultaneous detection of a broad range of explosives and narcotics, using trace samples collected from objects or skin, making it well-suited for high-throughput airport environments. It is part of Leidos' broader family of trace detection systems, including the TSA-certified QS-B220, which is widely deployed across U.S. airports nationwide. Leidos capabilities deployed across ...

Core Viewpoint - Leidos (LDOS) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][3]. - A strong correlation exists between earnings estimate revisions and stock price movements, with institutional investors using these estimates to determine fair value [3]. Leidos' Earnings Outlook - The recent upgrade for Leidos indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - For the fiscal year ending December 2025, Leidos is projected to earn $11.72 per share, with a 2.9% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [6]. - The upgrade of Leidos to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

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]

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 - 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]