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

Zacks identifies Leidos (LDOS) as a top long-term value stock, assigning it a #2 (Buy) Zacks Rank, an 'A' VGM Score, and a 'B' Value Style Score, underpinned by a forward P/E of 16.54. The global science and technology leader has demonstrated strong financial momentum, with its fiscal 2025 earnings estimate recently increasing to $11.28 per share following analyst revisions, coupled with an average earnings surprise of +25.1%. These factors position LDOS as a compelling investment opportunity for value-oriented portfolios.

Analysis

Leidos (LDOS), a global science and technology leader operating across defense, intelligence, civil, and health markets, has been identified as a top value stock by Zacks. The company currently holds a #2 (Buy) Zacks Rank, an 'A' VGM Score, and a 'B' Value Style Score, aligning with Zacks' criteria for stocks with high outperformance potential when combining strong ranks with favorable style scores. This robust rating is underpinned by an attractive forward P/E ratio of 16.54, which should appeal to value-focused investors.

Further supporting this positive outlook are recent upward revisions to earnings estimates for fiscal 2025. Two analysts have increased their projections in the last 60 days, leading to a $0.16 rise in the Zacks Consensus Estimate to $11.28 per share. This trend indicates growing confidence in the company's future profitability.

Leidos also demonstrates a strong track record of operational execution, evidenced by an impressive average earnings surprise of +25.1%. This consistent outperformance, combined with the favorable analyst revisions and strong quantitative scores, suggests sustained positive momentum. The confluence of these factors positions LDOS as a compelling consideration for investors seeking long-term value.

Key Decisions for Investors

• Investors should consider Leidos (LDOS) for long-term value-oriented portfolios, given its strong Zacks Rank and top-tier Style Scores.
• Monitor future earnings estimate revisions and the company's ability to maintain its average earnings surprise, as these are critical indicators of continued financial health.
• Evaluate LDOS's 16.54 forward P/E ratio relative to its industry peers to confirm its attractive valuation within the defense and technology sectors.