LDOS Stock Analysis — Leidos Holdings
Sector: Defense IT Services
AI Verdict
Leidos is cheap for the growth you're getting, but the overbought RSI means the next move is likely a pullback unless contract momentum justifies the optimism embedded in the moat.
Competitive Moat
Leidos specializes in mission-critical IT, engineering, and cybersecurity solutions for the U.S. government, with entrenched positions in defense and intelligence contracts that are difficult for competitors to displace. Its moat comes from long-term government relationships, classified project experience, and high switching costs for national security clients.
Summary
Leidos is trading at just 8.8x next year’s earnings despite analysts expecting a 51.1% jump in EPS.
Where It Stands
Despite a -20.08% 1-year return and an RSI of 78.8 signaling overbought conditions, Leidos trades at 8.8x forward earnings—well below the 20x industrials median.
Key Metrics
- RSI: 78.8 — Overbought
- Trailing P/E: 13.3x
- Forward P/E: 8.8x
- PEG Ratio: 0.27
- Earnings Growth: +0.5%
- Revenue Growth: +0.0%
- Market Cap: $17.9B
- Dividend Yield: 0.01%
- 1-Year Return: -20.08%
- 52-Week High: $205.77
- 52-Week Low: $98.86
Analyst Consensus
12 Buy · 13 Hold · 0 Sell (25 analysts)
Bull Case
With forward EPS growth forecast at 51.1% and a forward P/E of 8.8x, you're getting rapid earnings expansion at a bargain multiple.
Bear Case
An RSI of 78.8 means the stock is overbought, so even a return to a neutral RSI (say, 60) could mean a double-digit pullback from here.
Catalyst to Watch
Watch for upcoming government contract wins or renewals, as these can directly validate or challenge the 51.1% EPS growth forecast.