Leidos Holdings (LDOS): Is There Still Upside After This Year’s 30% Climb?

Leidos Holdings (LDOS) has caught the attention of some investors lately, following a modest but steady rise of roughly 30% year-to-date. The company’s multi-year gains and recent performance have prompted renewed interest in its long-term value.

See our latest analysis for Leidos Holdings.

Momentum has been building for Leidos Holdings, with its share price up over 30% year-to-date. New highs are drawing fresh attention to its long-term outlook. The company’s 13.9% total return over the past year and nearly 95% total return in five years stand out as compelling signals that investors are increasingly optimistic about its growth potential and ability to create shareholder value.

If this kind of sustained performance has you wondering where to look next, consider broadening your search and discover fast growing stocks with high insider ownership

With shares hitting new highs and strong returns over several years, the key question remains: is Leidos Holdings still undervalued, or are investors already factoring in all that future growth? Is there a buying opportunity, or has the market fully priced it in?

Most Popular Narrative: 14.5% Undervalued

Leidos Holdings recently closed at $186.49, while the most-followed narrative sees fair value well above this level. Here is what is fueling that view.

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 (such as FAA air traffic modernization, Golden Dome, maritime autonomy), which are expected to drive robust future revenue growth across core projects. Accelerating customer demand for digital modernization, AI-powered solutions, and autonomous systems in defense, healthcare, and intelligence plays to Leidos' strengths and is leading to higher-quality, higher-margin contracts that improve net margins, as these capabilities command premium pricing and are in areas of secular growth.

Read the complete narrative.

Want to know what powers Leidos’ loftier valuation? The real story is in how bold moves in emerging technologies and government projects anchor a higher profit outlook. Which forward-looking assumptions unlock this premium? Dive in to discover what is beneath the headline numbers.

Result: Fair Value of $218.08 (UNDERVALUED)

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

However, shifts in U.S. government spending or increased industry competition could limit Leidos’ upside and challenge these bullish long-term assumptions.

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

Build Your Own Leidos Holdings Narrative

If you see things differently or want to dig into the details yourself, remember, you can create your own perspective in just a few minutes. Do it your way.

A great starting point for your Leidos Holdings research is our analysis highlighting 4 key rewards and 1 important warning sign 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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