LDOS Stock Analysis — Leidos Holdings
Sector: Defense IT Services
AI Verdict
Leidos trades at just 11.9x next year's earnings with 10.3% EPS growth expected—cheap for the growth you're getting, and the moat of sticky federal contracts makes those earnings relatively credible.
Competitive Moat
Leidos specializes in mission-critical IT, analytics, and engineering for U.S. government agencies, with long-term contracts and high switching costs that make it hard for rivals to displace them. Its deep integration in defense, intelligence, and healthcare systems creates a sticky customer base and regulatory barriers to entry.
Summary
Leidos is notable right now for trading at a discount to peers while sitting in oversold territory with an RSI of 33.1.
Where It Stands
Shares are down -1.12% over the past year, the RSI is 33.1 (oversold), and the stock trades at 11.9x forward earnings versus the 20x industrials median.
Key Metrics
- RSI: 33.1 — Near Oversold
- Trailing P/E: 13.1x
- Forward P/E: 11.9x
- PEG Ratio: 1.27
- Earnings Growth: +0.1%
- Revenue Growth: +0.0%
- Market Cap: $18.4B
- Dividend Yield: 0.01%
- 1-Year Return: -1.12%
- 52-Week High: $205.77
- 52-Week Low: $139.69
Analyst Consensus
12 Buy · 11 Hold · 0 Sell (23 analysts)
Bull Case
With a forward P/E of 11.9x and analyst consensus for 10.3% EPS growth, you're paying a below-average multiple for steady government-backed earnings.
Bear Case
If P/E reverts to 10x (near defense contractor troughs), shares could lose another ~16% from here, especially if growth disappoints.
Catalyst to Watch
Watch for large contract wins or renewals—securing major government deals could justify the current multiple and spark a re-rating.