Leidos Holdings: Contract Visibility Meets Market Discount

  • Leidos is a leading US government contractor with strong revenue growth, high-quality profits, and a robust balance sheet, yet trades at a discount. The company benefits from predictable, long-term government contracts, steady demand, and stable margins, supporting continued growth in strategic sectors like cybersecurity and AI. Valuation models (DCF, P/E, EV/EBITDA) indicate a fair value 9–24% above current prices, with downside risk limited even under conservative scenarios.