Reston, Virginia’s Leidos Holdings, Inc. (LDOS) specializes in providing services across defense, intelligence, engineering, civil, and health sectors. With a market capitalization of $17.3 billion, the company delivers scientific, engineering, systems integration, and technical solutions.
Stock Performance Falls Short
Over the past year, shares of this global science and technology leader have struggled compared to the broader market. While LDOS has seen a modest increase of 6%, the S&P 500 Index ($SPX) soared nearly 22.5%. In 2025, LDOS stock is down 8.9%, in stark contrast to the SPX’s 4.2% rise this year.
ETF Comparison Highlights Struggles
Comparatively, LDOS is lagging behind the Global X Defense Tech ETF (SHLD), which has surged approximately 42.1% in the same timeframe. Furthermore, the ETF boasts a 14.9% increase year-to-date, outpacing LDOS’ minimal losses during this period.
Challenges Impacting Operations
The company’s lackluster performance can be linked to supply chain shortages troubling the defense industry, particularly regarding essential materials such as semiconductors and rare earth elements. This issue, worsened by global reliance on limited nations, is likely to continue affecting LDOS’s operational efficiency and growth potential. Additionally, profitability in the company’s defense and intelligence sectors has not met expectations, partly due to a one-time write-down related to an airborne surveillance business. Amid uncertainties surrounding government contract reforms, investors might consider exploring other options.
Quarterly Results Bring Mixed Signals
On February 11, shares of LDOS fell over 3% following the release of its Q4 results. The company reported an adjusted EPS of $2.37, surpassing Wall Street’s predictions of $2.18. Revenue reached $4.4 billion, exceeding expectations of $4.1 billion. Looking ahead, LDOS anticipates full-year adjusted EPS between $10.35 and $10.75, with revenue projected between $16.9 billion and $17.3 billion.
Analysts Remain Cautiously Optimistic
For fiscal 2025, which concludes in December, analysts forecast a 4% EPS growth for LDOS, estimating $10.62 on a diluted basis. The company has a strong track record, having beaten consensus estimates in the last four quarters.
Currently, 15 analysts are covering LDOS stock, with a consensus rating of “Moderate Buy,” indicated by 10 “Strong Buy” and five “Hold” ratings.
Future Outlook and Price Targets
This level of analyst activity represents a more bullish sentiment compared to a month ago, where only nine analysts had issued “Strong Buy” recommendations. On February 17, Citigroup Inc. (C) maintained a “Buy” rating for LDOS while lowering the price target to $180, indicating a potential upside of 37.1% from current levels. The average price target sits at $177.60, suggesting a 35.3% premium over LDOS’s current share price. Notably, the highest price target of $220 implies an ambitious upside potential of 67.6%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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