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Leidos - AI Stock Analysis
Analysis generated February 23, 2025
Leidos Holdings, Inc., commonly known as Leidos, is a prominent American defense, aviation, information technology, and biomedical research company. Leveraging advanced solutions across various sectors, the company focuses on providing integrated systems and technology solutions that address its clientele's most significant challenges. As a critical player in the government contractor space, Leidos's reputation and performance are tightly bound to its ability to innovate and deliver in highly sensitive and specialized domains.
Fundamental Analysis
Revenue: For the last quarter, Leidos reported a revenue of $4.19 billion. This marks a 1.40% increase from the previous quarter and a notable 6.86% increase compared to the same quarter last year. Such growth is indicative of a healthy expansion in operations and an effective business strategy.
Net Income: The net income for the last quarter stood at $364 million, reflecting a 12.35% increase from the previous quarter and a staggering 191.23% increase year-over-year. These figures underline significant profitability improvements and efficient cost management.
EBITDA: Leidos's EBITDA for the last quarter was $553 million, growing by 1.47% from the previous quarter and a remarkable 293.36% from the same quarter in the preceding year. Such a substantial rise in EBITDA signifies strong operational performance and improved earnings quality.
P/E Ratio: The current price-to-earnings (P/E) ratio is 13.75. This value suggests that the stock is reasonably valued relative to its earnings, not exhibiting extremes that might indicate overvaluation or undervaluation.
Technical Analysis
Stock Price: Today’s stock price of Leidos is $126.82, representing a 14.83% decline compared to a month ago, which could be concerning for short-term investors. However, on a year-over-year basis, the stock is up by 1.68%, signaling a positive long-term trajectory.
Trend: The overall trend appears bearish, with the current Simple Moving Average over 10 days (SMA10) at 130.23, down from the previous SMA10 of 130.62. This downward movement may indicate potential further declines in the short term.
RSI: The Relative Strength Index (RSI) stands at 69.6, indicating a neutral condition. This suggests that the stock is not currently overbought or oversold, providing an ambiguous signal regarding future price movements.
Alternative Data Analysis
Job Postings and Employee Sentiment: Leidos currently has 1,533 open positions, a 31% decline over the past couple of months. This reduction typically signals attempts at margin improvement or cost-cutting, which might be necessary but also raises concerns about growth potential. Employee sentiment remains neutral.
Customer Acquisition: The company's webpage has an estimated 800,000 visitors, a 30% decrease in recent months. This drop is worrisome as it may imply losing customer interest or business traction.
Customer Engagement: Leidos maintains a social media presence with 7,300 followers on Instagram and 17,000 followers on Twitter, with the figures remaining relatively unchanged recently. This indicates a stable but unremarkable level of engagement.
AltIndex AI Score: Leidos has an AI score of 41 from AltIndex, which categorizes the stock as a hold based on its fundamental, technical, and alternative data analysis.
Conclusion and Recommendation
Based on the provided data, Leidos appears to be in a stable albeit slightly pressured position. The fundamental analysis shows strong growth in revenue, net income, and EBITDA, suggesting robust operational performance. The technical analysis indicates a recent bearish trend which may concern short-term investors, although long-term trends remain positive. The alternative data analysis highlights potential issues with job postings and customer acquisition, painting a cautious outlook.
Given the mixed signals from various analyses and the AI score classification, the recommendation for Leidos stock is to hold. Investors should remain observant of upcoming financial reports and market movements to make informed decisions on any future actions.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
