Is LDOS Underperforming the Technology Sector?

Reston, Virginia-based Leidos Holdings, Inc. (LDOS) operates as an IT services company, serving defense, intelligence, civil, and health markets. With a market cap of $23.4 billion, the company provides solutions related to cybersecurity, data analytics, operations & logistics, software development, and more.

Companies worth $10 billion or more are generally described as “large-cap stocks.” Leidos Holdings fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the technology sector.

Leidos touched its all-time high of $202.90 on Nov. 22, 2024, and is currently trading 9.4% below that peak. Meanwhile, the stock has soared 23% over the past three months, notably outperforming the Technology Select Sector SPDR Fund’s (XLK) 12.5% surge during the same time frame.

Over the longer term, LDOS’ performance has remained mixed. The stock has gained 27.6% on a YTD basis and 19.1% over the past 52 weeks, outpacing XLK’s 16.7% gains in 2025, but lagging behind XLK’s 23.8% surge over the past year.

Meanwhile, the stock has traded above its 200-day moving average since late June and above its 50-day moving average since early April, with some fluctuations, underscoring its uptrend.

Leidos Holdings’ stock prices rose 7.5% in the trading session following the release of its robust Q2 results on Aug. 5 and maintained a positive momentum for six subsequent trading sessions. Q2 was marked with record margins, continued double-digit EPS growth, and strong cash conversion. The company’s revenues for the quarter increased 2.9% year-over-year to $4.3 billion, exceeding Street expectations. Meanwhile, its non-GAAP EPS soared by an impressive 22.1% year-over-year to $3.21, surpassing the consensus estimates by a significant margin. Further, its free cash flows soared 27.7% year-over-year to $457 million, boosting investor confidence.

When compared to its peer, Leidos has significantly outperformed Booz Allen Hamilton Holding Corporation’s (BAH) 21.1% decline on a YTD basis and 34.7% plunge over the past 52 weeks.

Among the 17 analysts covering the LDOS stock, the consensus rating is a “Moderate Buy.” Its mean price target of $191.27 suggests a modest 4.1% upside potential from current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com