Is Leidos Holdings Stock Underperforming the Nasdaq?
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With a market cap of $17.4 billion, Leidos Holdings, Inc. (LDOS) provides services and solutions for government and commercial customers internationally. The Reston, Virginia-based company operates through four segments: National Security & Digital; Health & Civil; Commercial & International; and Defense Systems.
Companies valued at $10 billion or more are generally described as “large-cap stocks,” and Leidos Holding definitely fits that description. LDOS is an industry and technology leader serving government and commercial customers, providing scientific, engineering, systems integration, and technical services.
The company declined 32.9% from its 52-week of $202.90. In addition, LDOS stock has dropped over 6.7% over the past three months, surpassing the broader Nasdaq Composite ($NASX), which dipped 9.2% over the same period.
In the long term, LDOS is down 5.7% on a YTD basis, a slightly gentler decline than NASX's 5.8% slip. However, shares of Leidos Holdings have gained 5.2% over the past 52 weeks, lagging behind the NASX’s 10.7% increase over the same time period.
Since mid-November 2024, LDOS has been trading below its 50-day moving average.
In spite of topping Street forecasts with Q4 2024 results, the shares of LDOS fell 3.6% on Feb. 11. It posted adjusted earnings of $2.37 per share and revenue of $4.4 billion. However, the company's health services and other civilian programs performed well, and lower-than-expected margins in its defense and intelligence units weighed on overall results, contributing to the decline in its share price.
In addition, Leidos Holdings expects full-year fiscal 2025 adjusted earnings to lie between $10.35 per share and $10.75 per share, with revenue to be in the range of $16.9 billion to $17.3 billion.
Moreover, compared to its rival, Broadridge Financial Solutions, Inc. (BR) has outpaced LDOS. Shares of BR gained 15.9% over the past 52 weeks and edged up 4.3% YTD.
Despite LDOS’ underperformance, analysts remain moderately optimistic about its prospects. Among the 15 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and Leidos Holdings is currently trading below the mean price target of $173.33.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.