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Are Investors Undervaluing Leidos (LDOS) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Leidos (LDOS - Free Report) . LDOS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 15.62, while its industry has an average P/E of 20.57. Over the last 12 months, LDOS's Forward P/E has been as high as 20.34 and as low as 14.23, with a median of 16.45.
Investors will also notice that LDOS has a PEG ratio of 1.05. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LDOS's PEG compares to its industry's average PEG of 1.47. LDOS's PEG has been as high as 2.06 and as low as 1.05, with a median of 1.55, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LDOS has a P/S ratio of 1.31. This compares to its industry's average P/S of 1.74.
Finally, we should also recognize that LDOS has a P/CF ratio of 14.63. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. LDOS's current P/CF looks attractive when compared to its industry's average P/CF of 27.42. Within the past 12 months, LDOS's P/CF has been as high as 18.38 and as low as 13.19, with a median of 15.27.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Leidos is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LDOS feels like a great value stock at the moment.
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Are Investors Undervaluing Leidos (LDOS) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Leidos (LDOS - Free Report) . LDOS is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 15.62, while its industry has an average P/E of 20.57. Over the last 12 months, LDOS's Forward P/E has been as high as 20.34 and as low as 14.23, with a median of 16.45.
Investors will also notice that LDOS has a PEG ratio of 1.05. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LDOS's PEG compares to its industry's average PEG of 1.47. LDOS's PEG has been as high as 2.06 and as low as 1.05, with a median of 1.55, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. LDOS has a P/S ratio of 1.31. This compares to its industry's average P/S of 1.74.
Finally, we should also recognize that LDOS has a P/CF ratio of 14.63. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. LDOS's current P/CF looks attractive when compared to its industry's average P/CF of 27.42. Within the past 12 months, LDOS's P/CF has been as high as 18.38 and as low as 13.19, with a median of 15.27.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Leidos is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LDOS feels like a great value stock at the moment.