Based in Reston, Virginia, Leidos Holdings, Inc. (LDOS) provides services and solutions in the defense, intelligence, civil, and health markets. Valued at a market cap of $20.8 billion, the company’s core capabilities include providing solutions in the fields of cybersecurity, data analytics, enterprise IT modernization, operations and logistics, and collection and phenomenology. 

Companies worth more than $10 billion are generally described as “large-cap” stocks, and Leidos Holdings fits this criterion perfectly. The company distinguishes itself as a leader in cybersecurity for the federal government, employing nearly 3,000 cybersecurity professionals, and is renowned for its innovative problem-solving solutions in its areas of interest. 

Shares of LDOS are trading 2.8% below their 52-week high of $159.10, which they reached on Sep. 3. The tech company has gained 7.5% over the past three months, surpassing the broader iShares U.S. Technology ETF’s (IYW) 2.2% decline over the same time frame.

In the longer term, LDOS stock is up 42.9% on a YTD basis, surpassing IYW’s 22.3% gains. Shares of LDOS have rallied 65.1% over the past 52 weeks, significantly outperforming IYW’s 38.6% returns over the same time frame.

To confirm its bullish trend, LDOS has been trading above its 200-day moving average since late October last year and has remained above its 50-day moving average since mid-August. 

LDOS released its Q2 earnings report on Jul. 30. The company reported adjusted earnings of $2.63 per share, which surpassed the Wall Street estimates of $2.26 per share. Its revenues of $4.13 billion also topped the estimates of $4.04 billion. However, shares of the company declined 4.6% after its earnings release. Leidos expects full-year earnings in the range of $8.60 to $9 per share.

LDOS has lagged behind its rival, CACI International Inc.’s (CACI) 50.4% gains on a YTD basis but outpaced CACI’s 52% returns over the past 52 weeks. 
Given that LDOS outperformed its industry peers, analysts remain optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 14 analysts covering it, and the mean price target of $169.75 suggests a premium of 9.7% to its current levels. 

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