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Leidos Holdings (LDOS) has been drawing attention after a steady mix of recent share price moves, including a gain over the past month and the past 3 months, alongside solid reported revenue and net income figures.

See our latest analysis for Leidos Holdings.

At a latest share price of $194.70, Leidos Holdings has paired a 7.36% 1 month share price return with a 26.75% 1 year total shareholder return, while its 3 year total shareholder return of 110.18% points to sustained momentum rather than a short term spike.

If you are looking beyond Leidos in the government and security space, this could be a useful moment to scan other aerospace and defense stocks that might fit a similar profile.

With Leidos trading around $194.70 and screens suggesting an intrinsic discount of about 33%, the key question is whether the market is still underestimating its prospects or if recent gains already reflect future growth.

Against the last close of US$194.70, the most followed narrative points to a higher fair value of about US$219.85, built on measured growth and resilient margins.

The business mix is shifting towards recurring, service-based and software-driven revenue streams (logistics, health IT, cloud-native platforms), enhancing earnings visibility and stability, which is expected to support higher long-term valuation multiples as the market recognizes improved predictability in cash flow and profit growth.

Read the complete narrative.

If you are curious about what earnings path and margin profile sit behind that premium multiple view, and how recurring contracts and buybacks feed into the valuation story, read on.

Result: Fair Value of $219.85 (UNDERVALUED)

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

However, this view can crack if US federal funding priorities shift, or if acquisition integration issues and pricing pressure start to weigh on margins.

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

If you see the story differently or want to test your own assumptions against the numbers, you can quickly build a custom thesis in minutes using 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.

If you stop with just one stock, you could miss out on other opportunities that fit your style, so consider widening your search with a few focused screens.

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.

Companies discussed in this article include LDOS.

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