Why Leidos (LDOS) is a Top Value Stock for the Long-Term

Zacks research identifies Leidos (LDOS) as a compelling investment, assigning it a #2 (Buy) Zacks Rank and an 'A' VGM score, alongside a 'B' Value Style Score driven by an attractive 16.07 forward P/E. The company's fiscal 2025 earnings estimates have seen significant upward revisions, increasing the consensus to $11.22 per share, and LDOS boasts an average earnings surprise of +25.1%. This robust fundamental outlook, supported by Zacks' proprietary methodology, positions LDOS as a top value stock for consideration.

Analysis

Leidos Holdings (LDOS) presents a compelling investment case based on a convergence of positive fundamental signals and attractive valuation metrics. According to Zacks' proprietary rating system, the company holds a #2 (Buy) rank, complemented by a top-tier 'A' VGM (Value, Growth, Momentum) score and a 'B' for its Value Style Score. This valuation is underpinned by a forward Price-to-Earnings (P/E) ratio of 16.07. The positive outlook is further substantiated by significant upward revisions in analyst sentiment; over the last 60 days, eight analysts have raised their fiscal 2025 earnings estimates, lifting the Zacks Consensus Estimate by $0.47 to $11.22 per share. This strong forward guidance is supported by a consistent history of outperformance, with LDOS reporting an average positive earnings surprise of +25.1%. As a technology provider to the defense, intelligence, civil, and health markets, this strong earnings momentum suggests robust operational execution and demand for its services.

Key Decisions for Investors

• Given the combination of a #2 (Buy) rank, attractive forward P/E of 16.07, and strong upward earnings revisions, investors should consider LDOS as a candidate for value- and growth-oriented portfolios.
• The primary catalyst is the rising earnings expectation for fiscal 2025; continued outperformance against the new $11.22 consensus estimate will be critical to sustaining the stock's positive thesis.
• Monitor the company's ability to maintain its significant average earnings surprise of +25.1%, as this track record is a key component of the current bullish sentiment.