Leidos Holdings (LDOS): Evaluating Valuation Following Strong Year-to-Date Share Price Momentum

Leidos Holdings (LDOS) has been on investors’ radar thanks to its steady performance this year. Shares are up nearly 29% since January, with the stock showing solid gains over the past 3 months as well.

See our latest analysis for Leidos Holdings.

Leidos Holdings’ momentum has been hard to miss, with the share price climbing nearly 29% year-to-date and the 3-month share price return reaching an impressive 13.5%. In addition, the total shareholder return over the past three years sits above 100%, reflecting meaningful long-term gains far beyond short-term market noise.

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With Leidos stock surging and outperforming peers, the big question now is whether shares still offer value for new investors or if the recent rally reflects all of the company’s future growth prospects. Could there be more upside left?

Most Popular Narrative: 5.2% Undervalued

With Leidos Holdings closing at $184.51 and the most-followed narrative setting a fair value at $194.71, the stock is currently trading below its consensus target. This narrative incorporates optimism from recent contract wins and digital transformation, while also considering reserved analyst expectations, establishing the foundation for significant growth assumptions.

Leidos is positioned to benefit from increased, multi-year government funding focused on national security, defense modernization, border protection, and infrastructure, particularly through the One Big Beautiful Bill and related initiatives (for example, FAA air traffic modernization, Golden Dome, maritime autonomy), which are expected to drive strong future revenue growth across core projects.

Read the complete narrative.

Behind this price target are substantial assumptions about how government spending and Leidos’ digital capabilities could support stronger margins and future profit. Interested in which forecasts and financial moves are influencing this view? Explore the detailed analysis that could inform your perspective on this stock.

Result: Fair Value of $194.71 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing dependence on U.S. government contracts and rising competition could threaten Leidos’ long-term growth assumptions if funding priorities or market dynamics change.

Find out about the key risks to this Leidos Holdings narrative.

Build Your Own Leidos Holdings Narrative

If you see things differently or prefer doing your own deep dive, it only takes a few minutes to shape your own perspective your way with Do it your way.

A great starting point for your Leidos Holdings research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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