Yahoo Finance Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Leidos (LDOS)
Founded in 1969, Delaware-based Leidos Holdings, Inc. is a global science and technology leader that serves the defense, intelligence, civil and health markets. Its core capabilities include providing solutions in the fields of cybersecurity; data analytics; enterprise IT modernization; operations and logistics; sensors, collection and phenomenology; software development; and systems engineering. Outside the United States, the company’s international customers include foreign governments and their agencies, primarily located in the United Kingdom, the Middle East and Australia.
LDOS is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 16.6X for the current fiscal year compared to the Aerospace - Defense industry's P/E of 17.6X. Additionally, LDOS has a PEG Ratio of 1.5 and a Price/Cash Flow ratio of 10.4X. Value investors should also note LDOS' Price/Sales ratio of 1.3X.
A company's earnings performance is important for value investors as well. For fiscal 2024, two analysts revised their earnings estimate higher in the last 60 days for LDOS, while the Zacks Consensus Estimate has increased $0.18 to $8.75 per share. LDOS also holds an average earnings surprise of 23.4%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding LDOS to their portfolios.
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Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report
