Here's Why You Must Add Leidos Stock to Your Portfolio Right Now

Leidos Holdings, Inc. LDOS, with rising earnings estimates, robust ROE and a solid backlog, offers a great investment opportunity in the Zacks Aerospace Defense industry.Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock an attractive investment pick at the moment.Growth Projections & Surprise History of LDOS The Zacks Consensus Estimate for Leidos’ 2025 earnings per share (EPS) has increased 1.2% to $10.44 in the past 60 days. The Zacks Consensus Estimate for the company’s total revenues for 2025 stands at $17.09 billion, which indicates growth of 2.6% from the 2024 reported figure.Leidos’ long-term (three to five years) earnings growth rate is 7.4%. It delivered an average earnings surprise of 28.34% in the last four quarters.LDOS’ Return on Equity Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, LDOS’ ROE is 30.93% compared to its industry’s average of 9.53%. This indicates that the company has been utilizing its funds more constructively than its peers in the sector.Leidos’ Debt Position Currently, the company’s total debt to capital is 50.03%, better than the industry’s average of 55%.Leidos’ times interest earned ratio (TIE) at the end of the fourth quarter of 2024 was 9.5. The TIE ratio of more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.LDOS’ Liquidity Leidos’ current ratio at the end of the fourth quarter of 2024 was 1.21. The strong ratio of greater than 1 indicates the company’s ability to meet its future short-term liabilities without difficulties.Rising Backlog of Leidos Contract wins from the Pentagon and other U.S allies for its cost-effective military technologies are one of Leidos Holdings' key sources of revenues. These contract wins help enhance the company's bookings and backlog.Leidos had an excellent backlog of $43.6 billion as of Jan. 3, 2025, up from $37 billion in the prior year. Such significant backlog trends improve the company's revenue-generating possibilities for the following quarters.LDOS Stock Price Performance In the past year, LDOS shares have rallied 6.8% against the industry’s decline of 5.5%.Image Source: Zacks Investment ResearchOther Stocks to Consider A few other top-ranked stocks from the same sector are Kratos Defense & Security Solutions, Inc. KTOS, RTX Corporation RTX and FTAI Aviation Ltd. FTAI, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.KTOS delivered an average earnings surprise of 70.63% in the last four quarters. The Zacks Consensus Estimate for KTOS’ total revenues for 2025 stands at $1.28 billion, which indicates growth of 12.2% from the 2024 estimated figure.RTX’s long-term earnings growth rate is 9.7%. The Zacks Consensus Estimate for RTX’s 2025 sales is pegged at $84.28 billion, which implies an improvement of 4.4% from the 2024 reported sales figure.  FTAI delivered an average earnings surprise of 30.65% in the last four quarters. The Zacks Consensus Estimate for FTAI’s total revenues for 2025 stands at $2.06 billion, which indicates growth of 20.2% from the 2024 estimated figure.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks