Should Value Investors Buy Leidos (LDOS) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.One company to watch right now is Leidos (LDOS). LDOS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 14.13, while its industry has an average P/E of 20.87. Over the past year, LDOS's Forward P/E has been as high as 20.34 and as low as 14.05, with a median of 16.45.Investors will also notice that LDOS has a PEG ratio of 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LDOS's industry has an average PEG of 1.49 right now. LDOS's PEG has been as high as 2.06 and as low as 0.95, with a median of 1.53, all within the past year.Investors should also recognize that LDOS has a P/B ratio of 4.17. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.45. Over the past 12 months, LDOS's P/B has been as high as 5.76 and as low as 3.48, with a median of 4.48.Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LDOS has a P/S ratio of 1.18. This compares to its industry's average P/S of 1.75.Finally, our model also underscores that LDOS has a P/CF ratio of 13.30. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. LDOS's current P/CF looks attractive when compared to its industry's average P/CF of 27.65. Over the past year, LDOS's P/CF has been as high as 18.38 and as low as 13.07, with a median of 15.27.Value investors will likely look at more than just these metrics, but the above data helps show that Leidos is likely undervalued currently. And when considering the strength of its earnings outlook, LDOS sticks out at as one of the market's strongest value stocks.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to 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 Leidos Holdings, Inc. (LDOS): 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