Here's Why You Should 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 #1 (Strong Buy) stock an attractive investment pick at the moment.Growth Projections & Surprise History of LDOSThe Zacks Consensus Estimate for Leidos’ 2024 earnings per share (EPS) has increased 10.5% to $9.89 in the past 60 days and indicates a 35.5% improvement from the year-ago figure. The consensus estimate for total revenues is $16.39 billion, which indicates growth of 6.1% from the 2023 figure.Leidos’ long-term (three to five years) earnings growth rate is 14.8%. It delivered an average earnings surprise of 29.92% in the last four quarters.LDOS’ Return on EquityReturn on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, LDOS’ ROE is 30.31% compared with its industry’s average of 9.59%. This indicates that the company has been utilizing its funds more constructively than its peers in the sector.Leidos’ Debt PositionCurrently, the company’s total debt to capital is 50.03%, better than the industry’s average of 55%.Leidos’ times interest earned (TIE) ratio at the end of the third quarter was 9.07. A TIE ratio of more than one indicates that the company will be able to meet its interest payment obligations in the near term without any problems.LDOS’ LiquidityLeidos’ current ratio at the end of the third quarter was 1.23. A current ratio of greater than one indicates the company’s ability to meet its future short-term liabilities without difficulties.Rising Backlog of LeidosContract wins from the Pentagon and other U.S. allies for its cost-effective military technologies are one of Leidos’ key revenue sources. These contract wins help enhance the company's bookings and backlog.Leidos had an excellent backlog of $40.56 billion as of Sept. 30, 2024, up from $36.49 billion in the prior year. Such significant backlog trends improve the company's revenue-generating possibilities for the following quarters.LDOS Stock’s Price PerformanceShares of LDOS have gained 28.8% in the year-to-date period against the industry’s 7% decline.Image Source: Zacks Investment ResearchOther Stocks to ConsiderOther top-ranked stocks from the same sector are Intuitive Machines, Inc. LUNR, Curtiss-Wright Corporation CW and AAR Corporation AIR. Each of these stocks carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Intuitive Machines delivered an average earnings surprise of 34.50% in the last four quarters. The Zacks Consensus Estimate for LUNR’s 2024 sales is pinned at $230.3 million, which indicates year-over-year growth of 189.6%.Curtiss-Wright delivered an average earnings surprise of 12.78% in the last four quarters. The consensus estimate for CW’s 2024 sales is pinned at $3.08 billion, which indicates year-over-year growth of 8.3%.AAR Corporation delivered an average earnings surprise of 1.80% in the last four quarters. The Zacks Consensus Estimate for AIR’s 2024 sales is pinned at $2.70 billion, which indicates year-over-year growth of 16.4%.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.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 AAR Corp. (AIR): Free Stock Analysis Report Curtiss-Wright Corporation (CW): Free Stock Analysis Report Leidos Holdings, Inc. (LDOS): Free Stock Analysis Report Intuitive Machines, Inc. (LUNR): 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