Leidos Holdings, Inc. LDOS, with rising earnings estimates, sturdy ROE and a strong backlog, gives an ideal funding alternative within the Zacks Aerospace Defense trade.
Let’s deal with the explanations that make this Zacks Rank #2 (Purchase) inventory a lovely funding choose for the time being.
Progress Projections & Shock Historical past of LDOS
The Zacks Consensus Estimate for Leidos’ 2025 earnings per share (EPS) has elevated 1.2% to $10.44 prior to now 60 days. The Zacks Consensus Estimate for the corporate’s whole revenues for 2025 stands at $17.09 billion, which signifies progress of two.6% from the 2024 reported determine.
Leidos’ long-term (three to 5 years) earnings progress fee is 7.4%. It delivered a median earnings shock of 28.34% within the final 4 quarters.
LDOS’ Return on Fairness
Return on fairness (ROE) signifies how effectively an organization has been using its funds to generate increased returns. Presently, LDOS’ ROE is 30.93% in comparison with its trade’s common of 9.53%. This means that the corporate has been using its funds extra constructively than its friends within the sector.
Leidos’ Debt Place
Presently, the corporate’s whole debt to capital is 50.03%, higher than the trade’s common of 55%.
Leidos’ instances curiosity earned ratio (TIE) on the finish of the fourth quarter of 2024 was 9.5. The TIE ratio of greater than 1 signifies that the corporate will be capable of meet its curiosity cost obligations within the close to time period with none issues.
LDOS’ Liquidity
Leidos’ present ratio on the finish of the fourth quarter of 2024 was 1.21. The robust ratio of better than 1 signifies the corporate’s potential to fulfill its future short-term liabilities with out difficulties.
Rising Backlog of Leidos
Contract wins from the Pentagon and different U.S allies for its cost-effective navy applied sciences are one among Leidos Holdings’ key sources of revenues. These contract wins assist improve the corporate’s bookings and backlog.
Leidos had a wonderful backlog of $43.6 billion as of Jan. 3, 2025, up from $37 billion within the prior 12 months. Such important backlog traits enhance the corporate’s revenue-generating potentialities for the next quarters.
LDOS Inventory Worth Efficiency
Prior to now 12 months, LDOS shares have rallied 6.8% in opposition to the trade’s decline of 5.5%.
Picture Supply: Zacks Funding Analysis
Different Shares to Take into account
A couple of different top-ranked shares from the identical sector are Kratos Protection & Safety Options, Inc. KTOS, RTX Company RTX and FTAI Aviation Ltd. FTAI, every carrying a Zacks Rank #2 at current. You possibly can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KTOS delivered a median earnings shock of 70.63% within the final 4 quarters. The Zacks Consensus Estimate for KTOS’ whole revenues for 2025 stands at $1.28 billion, which signifies progress of 12.2% from the 2024 estimated determine.
RTX’s long-term earnings progress fee is 9.7%. The Zacks Consensus Estimate for RTX’s 2025 gross sales is pegged at $84.28 billion, which means an enchancment of 4.4% from the 2024 reported gross sales determine.
FTAI delivered a median earnings shock of 30.65% within the final 4 quarters. The Zacks Consensus Estimate for FTAI’s whole revenues for 2025 stands at $2.06 billion, which signifies progress of 20.2% from the 2024 estimated determine.
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Kratos Defense & Security Solutions, Inc. (KTOS) : Free Stock Analysis Report
Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report
FTAI Aviation Ltd. (FTAI) : Free Stock Analysis Report
RTX Corporation (RTX) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
