Core Insights - Leidos Holdings, Inc. is a technology and engineering firm focused on national security, defense, health, and civil markets, with a market capitalization of approximately $23.8 billion [1] Stock Performance - LDOS shares have outperformed the broader market, gaining 13.2% over the past 52 weeks and 29.5% year-to-date, compared to the S&P 500 Index's gains of 11% and 12.3% respectively [2] - While LDOS has lagged behind the Technology Select Sector SPDR Fund's 17% surge over the past year, it has outpaced XLK's 17.5% increase in 2025 [3] Financial Performance - The company reported record revenues of $4.5 billion for the third quarter, reflecting a 7% year-over-year increase, with non-GAAP EPS of $3.05, up 4% annually [4] - Leidos' total backlog increased by 5% year-over-year, indicating strong demand for its services [4] Strategic Initiatives - The "NorthStar 2030" strategy is focused on growth areas such as national security, mission software, and health services, benefiting from favorable macroeconomic conditions [5] - Analysts project a 14.8% year-over-year growth in EPS for fiscal 2025, expecting it to reach $11.72 [5] Analyst Ratings - The stock has a consensus "Moderate Buy" rating, with 15 analysts covering it: eight recommend "Strong Buy," one "Moderate Buy," and six suggest a "Hold" rating [6] - Jefferies recently raised its price target for LDOS to $230 from $215, maintaining a "Buy" rating after a strong quarterly performance [7]

Group 1 - Johnson Controls International plc (NYSE:JCI) has successfully expanded into the data center market, which has positively impacted its stock performance [1] - The company specializes in HVAC, refrigeration, fire, security, and smart building technologies, along with energy efficiency solutions and maintenance services for various clients [1] - Jim Cramer noted that Johnson Controls' stock has been strong for an extended period, attributing part of its success to the demand for cooling systems in data centers [1] Group 2 - While Johnson Controls is recognized as a solid investment, there are AI stocks that may offer greater upside potential and lower downside risk [1] - The article suggests that certain AI stocks could benefit from Trump-era tariffs and the trend of onshoring, indicating a shift in investment focus [1]