Leidos (LDOS): Valuation Check After Hiring AI Veteran Ted Tanner Jr. as Chief Technology Officer
Leidos Holdings (LDOS) just made a strategically interesting move, naming AI veteran Theodore Ted Tanner Jr. as its next chief technology officer. Investors are already asking what this could mean for the stock.
See our latest analysis for Leidos Holdings.
That AI focused CTO hire lands at an interesting moment, because while the 1 month share price return is slightly negative, the year to date share price return of 26.6 percent and a three year total shareholder return near 79.5 percent show momentum that has cooled recently but remains firmly positive over the longer term.
If Tanner’s appointment has you thinking about where else advanced tech is reshaping industries, it could be a good time to scan aerospace and defense stocks for other potential standouts.
With Leidos trading about 20 percent below consensus targets and screening as modestly undervalued on intrinsic metrics, the key question now is whether this AI pivot signals a fresh opportunity for investors to consider or if markets already anticipate the next leg of growth.
Most Popular Narrative: 16.8% Undervalued
With Leidos last closing at $181.36 versus a narrative fair value near $218, the current setup leans toward upside if its execution stays on track.
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.
Want to see what is really powering that premium multiple argument? The narrative leans on steadily rising revenues, resilient margins, and a surprisingly ambitious earnings bridge. Curious how those moving parts translate into that fair value call?
Result: Fair Value of $218.08 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the story could change quickly if U.S. federal funding priorities shift, or if acquisition integrations stumble and promised synergies fail to materialize.
Find out about the key risks to this Leidos Holdings narrative.
Build Your Own Leidos Holdings Narrative
If you see the numbers differently or want to stress test the assumptions yourself, you can build a personalized narrative in just minutes: Do it your way.
A great starting point for your Leidos Holdings research is our analysis highlighting 5 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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