Core Insights - Leidos has signed a contract with Kazaeronavigatsia to modernize Kazakhstan's air traffic control system, reflecting over 20 years of collaboration in the aviation sector [1][3] - The modernization will include the installation of the SkyLine-X Air Traffic Management system, enhancing safety and operational efficiency for air traffic controllers [2][4] - Kazakhstan's aviation sector is projected to grow significantly, with annual passenger traffic expected to reach 26 million by 2030, up from nearly 15 million [4] Company Overview - Leidos is a leader in industry and technology, serving government and commercial customers with innovative digital solutions, and reported annual revenues of approximately $16.7 billion for the fiscal year ending January 3, 2025 [6] Industry Context - The agreement spans a 19-year period and involves upgrades at four control centers and 21 towers across Kazakhstan, indicating a long-term commitment to improving the country's air traffic management capabilities [3][4] - Kazakhstan's flight safety rating stands at 82%, surpassing the global average of 70.8%, highlighting the country's commitment to aviation safety [5]

Market Performance - The U.S. stock market showed strong performance last week, with major indices like the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average increasing by 0.82%, 0.84%, and 0.96% respectively [1] - Investor optimism was fueled by advancements in Artificial Intelligence and expectations for further interest rate cuts by the Federal Reserve, despite a partial government shutdown creating uncertainties [1] Consumer Confidence and Labor Market - The Conference Board's Consumer Confidence Index for September dropped by 3.6 points to 94.2, marking its lowest level since April, attributed to inflation and a weakening job market [2] - Job openings increased slightly by 19,000 to 7.227 million in August, while hiring decreased by 114,000 to 5.126 million according to the Job Openings and Labor Turnover Survey [2] Zacks Research Performance - Amneal Pharmaceuticals saw a stock increase of 29.9% since its Zacks Rank upgrade on July 25, outperforming the S&P 500's 5.5% increase [4][7] - Leidos Holdings experienced a 19.8% return following a Zacks Rank upgrade on July 28, also surpassing the S&P 500's 5.1% increase [5][7] - A hypothetical portfolio of Zacks Rank 1 stocks returned +8.64% in 2025 through September 1, compared to +7.60% for the S&P 500 index [5] Focus List and Model Portfolios - The Zacks Focus List portfolio returned 13.74% in 2025 through August 31, outperforming the S&P 500 index's 10.79% [12] - Intellia Therapeutics gained 85.9% and Shopify returned 38.3% over the past 12 weeks, significantly outperforming the S&P 500's 7% increase during the same period [11] Earnings Certain Admiral Portfolio (ECAP) - The ECAP returned +0.20% in Q2 2025, underperforming the S&P 500 index's +10.94% gain [16] - The portfolio aims to minimize capital loss by holding shares of companies with a proven track record of earnings stability over 20+ years [17] Earnings Certain Dividend Portfolio (ECDP) - Johnson & Johnson returned 20.9% and Home Depot increased by 6.3% over the past 12 weeks, benefiting from investor preference for quality dividend stocks amid market volatility [19] - The ECDP returned -3.17% in Q2 2025, compared to the S&P 500 index's +10.94% gain [20] Top 10 Stocks Performance - Goldman Sachs, part of the Zacks Top 10 Stocks for 2025, increased by 38% year-to-date, outperforming the S&P 500 index's 14.2% increase [22] - The Top 10 portfolio has produced a cumulative return of +2,369.7% since 2012, significantly outperforming the S&P 500 index's 522.5% [24]

Company Performance - Leidos (LDOS) closed at $195.58, with a daily increase of +1.39%, outperforming the S&P 500's gain of 0.01% [1] - The stock has risen by 8.01% over the past month, lagging behind the Computer and Technology sector's gain of 10.49% and exceeding the S&P 500's gain of 4.83% [1] Upcoming Earnings - Leidos is set to release its earnings on November 4, 2025, with an expected EPS of $2.62, reflecting a decrease of 10.58% from the prior-year quarter [2] - The consensus estimate for quarterly revenue is $4.28 billion, which represents an increase of 2.06% from the year-ago period [2] Full-Year Estimates - The Zacks Consensus Estimates for Leidos indicate earnings of $11.22 per share and revenue of $17.15 billion, showing year-over-year changes of +9.89% and +2.95%, respectively [3] - Recent changes to analyst estimates suggest a favorable outlook on the company's business health and profitability [3] Zacks Rank and Valuation - Leidos currently holds a Zacks Rank of 2 (Buy), with a recent 0.26% increase in the Zacks Consensus EPS estimate over the last 30 days [5] - The company has a Forward P/E ratio of 17.19, which aligns with the industry average [6] PEG Ratio - Leidos has a PEG ratio of 1.84, compared to the average PEG ratio of 1.99 for the Computers - IT Services industry [7] Industry Overview - The Computers - IT Services industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 74, placing it in the top 30% of over 250 industries [8]

Group 1 - ETHA is down approximately 15% from its August highs and is at support from its 2020-2024 highs, indicating a potential setup for Q4 risk-on strategies [1] - The Chinese government reportedly spends 600 times more on cybersecurity than the U.S., highlighting the importance of cybersecurity offerings from companies like Lighthouse [2] - Charles Schwab is experiencing the fastest earnings growth in the financial sector, benefiting from high share prices and Fed rate cuts, trading at 18 times earnings [2] Group 2 - Positive calls were made on several regional banks, with Morgan Stanley being highlighted for its strong performance in wealth management [3]

Company Performance - Leidos (LDOS) closed at $182.36, reflecting a -2.69% change from the previous day, underperforming the S&P 500's daily loss of 0.5% [1] - Over the last month, Leidos shares increased by 2.19%, lagging behind the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 2.74% [1] Earnings Forecast - Analysts predict Leidos will report an EPS of $2.62, indicating a 10.58% decline compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projected at $4.28 billion, up 2.06% from the year-ago period [2] Full Year Estimates - For the full year, earnings are expected to be $11.22 per share and revenue at $17.15 billion, representing changes of +9.89% and +2.95% respectively from last year [3] - Recent changes to analyst estimates suggest a positive outlook for Leidos, as these modifications often indicate shifting near-term business trends [3] Valuation Metrics - Leidos is currently trading at a Forward P/E ratio of 16.7, which is in line with the industry average [6] - The PEG ratio for Leidos stands at 1.79, compared to the industry average PEG ratio of 2.06 [6] Industry Context - The Computers - IT Services industry, which includes Leidos, ranks in the bottom 42% of all industries according to the Zacks Industry Rank [7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Summary of DHI Group Inc. Q3 Investor Summit Company Overview - DHI Group Inc. is listed on the New York Stock Exchange under the symbol DHX and is headquartered in Denver, Colorado [2] - The company operates two tech-oriented recruiting platforms: ClearanceJobs and Dice, which connect recruiters and hiring managers with tech candidates [2][3] Industry Insights - The U.S. tech workforce has grown by approximately 3% annually over the past 25 years, with a projected growth of at least 18% over the next decade, which is twice the overall employment growth rate [5][8] - The average salary for a tech worker in the U.S. was $111,000, compared to $50,000 for the average worker [6] Financial Performance - DHI reported $142 million in revenue and $141 million in bookings for the previous year, with a five-year CAGR of 6% for both metrics [4] - Adjusted EBITDA was $35 million, resulting in a 25% adjusted EBITDA margin [4] - The company ended 2024 with net debt of $28 million, equating to less than one times leverage [4] Revenue Model - Over 90% of DHI's revenue is recurring due to subscription contracts, with a one-year minimum contract and auto-renewal clauses [12] - DHI's platforms charge clients between $8,000 to $15,000 for entry-level year-long subscriptions [7] Market Position and Competitive Advantage - ClearanceJobs is the leading platform for accessing technology professionals with government clearance, a niche not served by LinkedIn [5][6] - DHI has a unique skills taxonomy that categorizes over 100,000 tech skills, which enhances candidate profiling and search capabilities [9][10] - The company has a significant total addressable market (TAM) with approximately 1,900 clients for ClearanceJobs and 4,400 clients for Dice [11][20] Recent Developments - DHI has restructured its operations to separate Dice and ClearanceJobs, aiming to maximize profitability and strategic options [15][16] - The company has reinstituted its share buyback program, allowing for the repurchase of up to $5 million of common stock through February 2026 [19] Future Outlook - Revenue guidance for 2025 is projected between $126 million and $128 million, with an expected EBITDA margin of 26% [26] - DHI is exploring new revenue lines, including an applicant tracking system (Agile ATS) and a premium candidate subscription for ClearanceJobs [28][29] Challenges and Market Conditions - The elevated interest rate environment has suppressed hiring demand, impacting bookings and revenue [8][16] - Dice's quarterly bookings have seen a decline of 16% year-over-year, reflecting challenges in the HR tech hiring environment [21] Key Differentiators - DHI differentiates itself from larger players like LinkedIn by focusing on tech skills rather than job titles, allowing for more relevant candidate engagement [32][34] - The platforms provide insights into candidate activity, such as the number of days since a candidate was last active, which is crucial for recruiters [34][35] Conclusion - DHI Group Inc. is well-positioned to capture growth in tech hiring, leveraging its unique platforms and expertise in technology recruitment [23]

Group 1 - Leidos closed at $185.26, with a +2.71% change from the previous day, outperforming the S&P 500's gain of 0.85% [1] - Over the last month, Leidos shares decreased by 0.87%, while the Computer and Technology sector gained 4.39% and the S&P 500 gained 2.38% [1] Group 2 - Leidos is forecasted to report an EPS of $2.62, reflecting a 10.58% decrease from the same quarter last year, with expected revenue of $4.28 billion, up 2.06% year-over-year [2] - For the full year, earnings are projected at $11.22 per share and revenue at $17.15 billion, indicating increases of +9.89% and +2.95% respectively from the prior year [3] Group 3 - Recent changes in analyst estimates for Leidos can indicate shifts in near-term business trends, with positive revisions seen as favorable for the business outlook [3] - The Zacks Rank system, which incorporates estimate changes, has shown a track record of outperformance, with 1 stocks returning an average of +25% annually since 1988 [4][5] Group 4 - Leidos has a Forward P/E ratio of 16.07, which is below the industry average of 17.33, indicating it is trading at a discount [6] - The current PEG ratio for Leidos is 1.72, compared to the industry average of 2.09, suggesting a more favorable valuation relative to expected earnings growth [7] Group 5 - The Computers - IT Services industry, which includes Leidos, has a Zacks Industry Rank of 95, placing it in the top 39% of over 250 industries [7][8]

Core Insights - Leidos Holdings (NYSE: LDOS) has experienced a nearly 20% increase in share price since the initial buy recommendation was published, indicating strong market confidence in the company's growth and profitability [1]. Company Performance - The company continues to demonstrate robust growth and high profitability, which is a positive indicator for potential investors [1].

Core Insights - Leidos Holdings (NYSE: LDOS) has seen its shares increase by nearly 20% since the initial buy recommendation was published, indicating strong market confidence in the company's growth and profitability [1]. Company Performance - The company continues to demonstrate robust growth and high profitability, which is a positive indicator for potential investors [1].

Core Viewpoint - Science Applications International Corporation (SAIC) reported strong earnings per share (EPS) but faced challenges with revenue and bookings, leading to a decline in stock price despite the positive EPS performance [2][3][6] Financial Performance - SAIC reported an EPS of $3.63, significantly exceeding the estimated $2.25, and marking a substantial increase from $2.05 in the same quarter last year, resulting in an earnings surprise of +61.33% [2][6] - The company's revenue was $1.77 billion, which fell short of the estimated $1.86 billion and showed a slight decline from $1.82 billion reported in the previous year [2][6] Market Reaction - Despite the strong EPS performance, SAIC's stock price declined by 7% due to investor concerns over bookings, which fell short of expectations, indicating potential future revenue challenges [3][6] Valuation Metrics - SAIC has a price-to-earnings (P/E) ratio of approximately 14.46, a price-to-sales ratio of about 0.67, and an enterprise value to sales ratio of around 0.99, reflecting its market valuation relative to earnings and sales [4] - The company has a debt-to-equity ratio of approximately 1.62, indicating reliance on debt for financing operations, and a current ratio of around 0.78, suggesting challenges in covering short-term liabilities with short-term assets [5] Consistency in Performance - SAIC has consistently exceeded consensus EPS estimates in three of the last four quarters, which continues to attract attention in the industry despite the recent challenges [5]