LDOS

Leidos Holdings, Inc.
TechnologyInformation Technology ServicesNASDAQ
$127.80
+$4.94 (3.87%)today
Conviction
8/ 10
Fair Value$204.93
Upside+30.80%
Signal0.389
Market Cap$20.0B
52W Range$136.91–$205.77
Next EarningsMay 5

Conviction History

Conviction Changes

Mar 18, 2026, 7:15 AM78conviction-rescore
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Price History

FAIR VALUE ANALYSISMonte Carlo · 5,000 runs · 99% valid
Fair Value$225.13
Current Price$165.87
Upside / Down+35.7%
P(Undervalued)93.7%
P(20%+ Up)73.2%
P(15%+ Down)0.5%

Fair Value Distribution — percentile bands

93.7% of simulations place fair value above current price

WHAT IS PRICED IN

Revenue-Based Reverse DCF

-2.0%/yr

±3.6% · revenue growth to justify current price

FCF-Based Reverse DCF

-1.5%/yr

±3.0% · FCF growth to justify current price

THE GAP

Market pricing margin compression or rising capex

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Bull Case

$49B backlog, 87% US government revenue, DOGE bear case overstated (mission-critical contracts), DCF FV=$225 vs $169 (33% upside), defense modernization + AI government contract secular tailwind.

Bear Case

Below 200dma (-4 tech score), MACD negative, below both MAs. Caution regime makes this a WAIT. DOGE budget risk is real even if overstated. RSI 41 — no setup yet.

Thesis Breakers

Defense budget cuts >10%, major contract cancellations, DOGE broader mandate hitting IT services

Updated Mar 18

Research Feed

newsApr 1
Conviction: unchanged
Leidos Completes $2.4B ENTRUST Acquisition + $454.9M USAF Cloud One Contract

LDOS completed acquisition of ENTRUST Solutions Group from Kohlberg for $2.4B, expanding energy infrastructure capabilities. Simultaneously secured $454.9M contract to modernize USAF Cloud One platfor...

newsMar 30
Conviction: unchanged
LDOS: 8-Day Losing Streak (-8%), Upgraded to Buy; Shares Near Stop

Leidos hit an 8-day losing streak with cumulative -8% decline (~.7B market cap loss), but analyst upgraded to Buy from Hold. Stock near , approaching stop. Thesis intact but price pressure warrants m...

newsMar 27
Conviction: unchanged
LDOS: 7-Day Losing Streak -6.7% Despite .9M Air Force Cloud One Contract

LDOS hit 7-day losing streak with -6.7% cumulative loss (.4B market cap wiped) despite securing .9M AF NorthStar 2030 Cloud One contract on March 20. Technically broken, macro/defense IT sentiment wei...

analysisMar 5
Conviction: unchanged
LDOS: Government IT Services Leader — DOGE Bear Case Overstated, Record FCF Engine Intact

LDOS beat Q4 2025 with record FCF and 680bps margin expansion. 2026 guidance 17.5-17.9B. DOGE bear case overstated — defense IT is mission-critical, not discretionary. FCF engine and margin expansion ...

sec_10kMar 3
Conviction: unchanged
FY2025 10-K: Government Contract Strength, Diversified Revenue Mix, Balanced Growth

Leidos is a pure-play government services provider with strong geopolitical tailwinds and a diversified contract mix. Core thesis: secular growth in defense/national security spending + AI/space moder...