Should I Buy LDOS? LDOS 2026 Analysis

Should You Buy Leidos Holdings Inc (LDOS) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

192.990

1 Day change

3.71%

52 Week Range

205.770

Analysis Updated At

2026/02/05

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Buy LDOS now: price (~188.9 pre-market) sits just below the key pivot (190.36) with multiple near-term bullish catalysts (defense awards + pro-defense policy tailwinds + upcoming earnings).
Upside skew remains attractive vs Street targets: recent price targets cluster around $218–$235, implying meaningful upside from current levels despite one notable downgrade.
Intellectia Proprietary Trading Signals
- AI Stock Picker: no signal on given stock today.
- SwingMax: No signal on given stock recently.
Who’s buying: hedge funds are aggressively accumulating (+348.79% QoQ buying), while insiders are neutral—overall supportive for a “buy now” decision.

Technical Analysis

Trend/Momentum: mildly bearish-to-neutral near-term; MACD histogram -0.513 (below zero) but negatively contracting (downtrend losing steam).
RSI (6): 43.69 (neutral, slightly weak) — not oversold, but pressure has eased.
Moving averages: converging, typically consistent with consolidation and potential breakout if catalysts hit.
Key levels:
- Pivot: 190.36 (reclaiming/holding above supports a push higher)
- Support: 185.01 (S1) then 181.71 (S2)
- Resistance: 195.71 (R1) then 199.01 (R2)
Pattern-based odds (next month): modeled path suggests a constructive drift (~+8.06% next month scenario), aligning with a buy-now stance if you want immediate exposure ahead of catalysts.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning/Sentiment: low put-call ratios (OI 0.42, volume 0.24) indicate bullish call skew and generally constructive sentiment.
Implied vol: 30D IV 38.16% vs HV 25.3%; IV percentile 84.46 suggests the market is pricing elevated event risk (consistent with upcoming earnings and deal headlines).
Activity: today’s option volume 108 is light vs recent averages (5D/10D avg 241–253), but open interest is solid (total OI **7,490**), implying positioning is already on.

Technical Summary

Sell

Buy

Positive Catalysts

- Contract momentum: Leidos included in a $561M IDIQ for defense data management/analysis support (reinforces demand visibility).
- Policy tailwind: Trump executive order shifting government to primary customer role in space trade is a thematic positive for defense/space-adjacent contractors like Leidos.
- Sector demand: defense tech spending projected to reach $384B in 2026 (macro tailwind).
- Upcoming earnings catalyst: QDEC 2025 earnings on 2026-02-17 (pre-market) can re-rate the stock if bookings/margins hold.
- Smart money flow: hedge funds are net buying strongly (+348.79% QoQ).

Neutral/Negative Catalysts

- Analyst concern on 2026 growth: Stifel downgrade cites potential moderation from high-margin VA medical exam work; this can cap near-term multiple expansion until proven durable.
- Deal execution/financing risk: planned $2.4B cash acquisition of ENTRUST introduces integration and capital allocation scrutiny.
- Technicals not yet “risk-on”: MACD still below zero and price is below pivot resistance (~190.36), so a clean momentum breakout is not confirmed yet.
- Elevated implied volatility: options market is pricing higher uncertainty into the next 30 days (good for catalysts, but reflects non-trivial event sensitivity).

Financial Performance

Latest reported quarter: 2025/Q3
- Revenue: $4.469B, +6.66% YoY (solid top-line growth)
- Net Income: $367M, +0.82% YoY (modest profit growth)
- EPS: 2.82, +5.22% YoY (earnings growth outpacing revenue)
- Gross Margin: 18.37%, +0.99% YoY (incremental margin improvement)
Takeaway: financial trend is steady growth with slight margin expansion, supportive of buying ahead of earnings if you want immediate exposure.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent changes (trend): sentiment is mostly constructive but turning more selective.
- Stifel (2026-01-07): downgraded to Hold from Buy; PT $220 (concern: 2026 growth moderation tied to VA exams).
- Citi (2025-12-11): initiated Buy, PT $218 (sector megatrends supportive).
- BofA (2025-11-07): Buy, raised PT to $235 (strength in Defense Systems; aligned with administration funding priorities).
Wall Street pros: strong execution, defense spending/policy tailwinds, contract momentum, upside to targets.
Wall Street cons: 2026 growth durability questions (VA-related), plus acquisition integration/capital deployment risk.
Influential/political trading check: no recent congress trading data available; insider trading trend is neutral.

11 Analyst Rating

Wall Street analysts forecast LDOS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LDOS is 219.7 USD with a low forecast of 178 USD and a high forecast of 235 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

7 Buy

4 Hold

0 Sell

Moderate Buy

Current: 186.080

Low

178

Averages

219.7

High

235

Current: 186.080

Low

178

Averages

219.7

High

235

Truist

Michael Ciarmoli

maintain

$47 -> $54

AI Analysis

2026-01-09

Reason

Truist

Michael Ciarmoli

Price Target

$47 -> $54

AI Analysis

2026-01-09

maintain

Reason

Truist analyst Michael Ciarmoli raised the firm's price target on Leonardo DRS to $54 from $47 and keeps a Buy rating on the shares. Despite a strong 2025, the Aerospace & Defense sector remains broadly bullish for 2026, with rising aircraft production and sustained aftermarket demand supporting both OE and AM segments, the analyst tells investors in a research note. Defense may see fewer catalysts, but recapitalization, geopolitical tensions, and replenishment needs should sustain demand, making stock selection critical amid elevated valuations, particularly for SMID defense tech names, the firm adds.

Stifel

Buy

Hold

downgrade

$220

2026-01-07

Reason

Stifel

Price Target

$220

2026-01-07

downgrade

Buy

Hold

Reason

Stifel downgraded Leidos to Hold from Buy with an unchanged price target of $220. The company has been executing "exceptionally well" on bookings, organic growth, and margins, the analyst tells investors in a research note. However, the firm sees a moderation of growth from Leidos' "high-margin" Department of Veterans Affairs compensation and pension medical exams as a challenge in 2026. This will hold back the stock, contends Stifel. While earnings from this "key contract" may not deteriorate as much as some worry, it will likely take time for Leidos to prove this sustainability, the firm says.

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LDOS Should I Buy

LDOS Should I Buy

Should You Buy Leidos Holdings Inc (LDOS) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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