Neharika Jain
2 min read
In This Article:
Valued at a market cap of $19.1 billion, Leidos Holdings, Inc. (LDOS) is a technology company serving government and commercial clients. The Reston, Virginia-based company provides solutions across defense, intelligence, civil, and health sectors, specializing in areas such as mission systems, cybersecurity, AI-powered analytics, cloud modernization, air traffic management, energy infrastructure, and biomedical research.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and LDOS fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the information technology services industry. The company's long-standing relationships with key U.S. federal agencies, including the Department of Defense, Homeland Security, and the FAA, provide strong revenue visibility through multi-year government contracts. Its specialty lies in delivering complex, integrated solutions that combine advanced technologies like AI, machine learning, cloud modernization, and data analytics with domain-specific expertise.
This tech company is currently trading 26.9% below its 52-week high of $202.90, reached on Nov. 12, 2024. LDOS has rallied 7% over the past three months, outpacing the Dow Jones Industrial Average’s ($DOWI) 1.4% uptick during the same time frame.
Moreover, on a YTD basis, shares of LDOS are up 3%, outperforming DOWI’s marginal downtick. However, in the longer term, LDOS has gained 3.1% over the past 52 weeks, lagging behind DOWI’s 8.6% rise over the same time frame.
To confirm its recent bullish trend, LDOS has been trading above its 50-day moving average since early April, with slight fluctuations. However, it has remained below its 200-day moving average since mid-December, 2024, with some fluctuations.
On May 6, Leidos Holdings’ shares rose 4.6% following its better-than-expected Q1 earnings release. Due to increased demand across all customer segments, its revenue grew 6.8% year-over-year to $4.2 billion, exceeding Wall Street expectations by 4.2%. Moreover, solid margin expansion compared to the prior-year quarter led to a 29.7% growth in its adjusted EPS to $2.97. The bottom-line figure also surpassed the consensus estimates by a notable margin of 20.2%. The company’s impressive performance was supported by higher volumes in managed health services programs, improved program execution, and effective cost management across operations.
