Core Viewpoint - The market anticipates a year-over-year decline in Leidos' earnings despite an increase in revenues for the quarter ending September 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Leidos is expected to report earnings of $2.61 per share, reflecting a year-over-year decrease of 10.9%, while revenues are projected to be $4.27 billion, an increase of 1.8% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.26% higher in the last 30 days, indicating a slight positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Leidos is lower than the consensus estimate, resulting in an Earnings ESP of -2.30%, suggesting a bearish outlook from analysts [12]. Historical Performance - Leidos has consistently beaten consensus EPS estimates in the past four quarters, with a notable surprise of +22.05% in the last reported quarter [13][14]. Investment Considerations - Despite the historical performance, the current combination of a negative Earnings ESP and a Zacks Rank of 3 makes it challenging to predict an earnings beat for Leidos [12][17].

Core Viewpoint - Leidos (LDOS) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook driven by an upward trend in earnings estimates, which significantly influences stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are closely correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [3][5]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [3]. Business Improvement Indicators - Rising earnings estimates and the Zacks rating upgrade for Leidos suggest an improvement in the company's underlying business, which is expected to be reflected in higher stock prices [4][9]. Earnings Estimate Revisions for Leidos - Leidos is projected to earn $11.28 per share for the fiscal year ending December 2025, with no year-over-year change; however, the Zacks Consensus Estimate has increased by 5.9% over the past three months [7]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988, indicating a strong performance potential [6][8]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, positioning Leidos among the best candidates for market-beating returns in the near term [9].

Core Viewpoint - Leidos (LDOS) has experienced a bearish trend recently, losing 6.6% over the past two weeks, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottom in the stock price, characterized by a small candle body and a long lower wick, suggesting that bears may be losing control [4][5]. - This pattern typically forms during a downtrend when the stock opens lower, makes a new low, but then finds support and closes near its opening price, indicating a possible shift in momentum [4][5]. Fundamental Analysis - There is rising optimism among Wall Street analysts regarding the future earnings of Leidos, which supports the potential for a trend reversal [2][7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 1.6%, indicating that analysts expect better earnings than previously predicted [8]. - Leidos currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically correlates with outperformance in the market [9].