Are Wall Street Analysts Bullish on Leidos Holdings Stock?

Wall Street analysts present mixed opinions on Leidos Holdings stock (LDOS). The company, a global science and technology leader, provides services in the defense, intelligence, engineering, civil, and health markets. However, LDOS has underperformed the broader market, declining 20.1% year-to-date (YTD) while the S&P 500 Index ($SPX) has risen nearly 19.3%.

Comparatively, the Global X Defense Tech ETF (SHLD) has gained about 16.2% YTD, further highlighting LDOS' underperformance. The decline is attributed to contract transitions, execution delays, and budget friction due to government budgeting issues. Notably, LDOS' performance has been inconsistent, with strong earnings in recent quarters.

In its most recent earnings report, LDOS reported adjusted EPS of $3.26, surpassing expectations of $2.90. The company expects full-year adjusted EPS between $12.20 and $12.50 on a diluted basis, with revenue forecasted between $18.2 billion and $18.4 billion. Analysts' opinions have also evolved, with the consensus now being "Moderate Buy" among 18 covering firms, down from "Strong Buy" three months ago.

Despite this, Wells Fargo & Company (WFC) raised its price target to $165, implying a potential 15% upside from current levels.