Last Updated: 14 Nov 2024
Executive Summary
Leidos Holdings Inc. (LDOS) is a leading defense, aviation, information technology, and biomedical research company with a market capitalization of $26.86 billion. The company has a strong financial position with an EBITDA of $2.06 billion and a trailing PE ratio of 22.87. Analysts are bullish on LDOS, with 6 strong buy and 8 buy ratings. The stock's target price is $209.2.
Company Overview
Leidos provides scientific, engineering, systems integration, and technical services to government and commercial customers. The company has a diversified portfolio of businesses, including defense, intelligence, homeland security, and healthcare. Leidos has a strong track record of growth and profitability.
Fundamental Analysis
Leidos' financial performance has been solid in recent years. The company's revenue has grown at a CAGR of 6.9% over the past five years. Net income has grown at a CAGR of 10.2% over the same period. Leidos has a strong balance sheet with $1.5 billion in cash and equivalents and $3.4 billion in debt. The company's return on equity is 27%, which is above the industry average.
Technical Analysis
LDOS has been trading in a range between $103.43 and $202.9 over the past 52 weeks. The stock is currently trading at $194.4, which is above its 50-day and 200-day moving averages. The relative strength index (RSI) is 62, which indicates that the stock is overbought.
Short Term Outlook
LDOS is likely to continue to trade in a range in the near term. The stock could face resistance at the $200 level. However, if the stock breaks above this level, it could move up to the $209.2 target price.
Long Term Outlook
LDOS is a well-positioned company with a strong track record of growth and profitability. The company is expected to continue to grow in the long term as it benefits from increased government spending on defense and intelligence.
Analyst Recommendations
Analysts are bullish on LDOS. The consensus recommendation is buy. The average target price is $209.2.
