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

Leidos (LDOS) is highlighted by Zacks as a top momentum stock, despite its #3 (Hold) Rank, attributed to strong 'A' Momentum and VGM Style Scores. The company has seen its shares rise 4.8% over the past four weeks, supported by six upward revisions to its FY2025 earnings estimates, now at $10.75 per share, and an impressive 23.7% average earnings surprise. This combination of technical strength and fundamental upgrades positions LDOS as a notable consideration for momentum-focused investors.

Analysis

Leidos Holdings (LDOS) presents a compelling case for momentum-focused investors, supported by strong quantitative signals despite a neutral overall rating. The company, a technology provider to defense, intelligence, and civil markets, has achieved an 'A' rating for both its Momentum and overall VGM Style Scores from Zacks. This technical strength is substantiated by a 4.8% share price increase over the last four weeks and a consistent history of outperforming expectations, evidenced by an average earnings surprise of 23.7%. Fundamentally, the positive momentum is backed by upward revisions in earnings estimates; six analysts have revised their fiscal 2025 earnings forecasts upwards in the past 60 days, raising the consensus estimate by $0.24 to $10.75 per share. However, these bullish indicators are juxtaposed with a Zacks Rank of #3 (Hold), suggesting that while momentum and select fundamentals are strong, the stock may not meet the criteria for an unequivocal 'Buy' rating under the full scope of the Zacks model.

Key Decisions for Investors

• Momentum-oriented investors should consider LDOS, given its top-tier 'A' Momentum Score, recent 4.8% price appreciation, and significant upward revisions to its fiscal 2025 earnings estimates.
• Investors should weigh the bullish momentum signals against the neutral Zacks #3 (Hold) rank, which may indicate underlying factors that temper the short-term positive outlook.
• It is critical to monitor the trend in analyst earnings estimate revisions and the company's ability to maintain its significant 23.7% average earnings surprise, as these are the primary drivers underpinning the current momentum thesis.