With Leidos Stock Sliding, Have You Assessed The Risk?
Leidos (LDOS) stock is down 17.0% in 5 trading days. The recent slide reflects renewed concerns around a significant Q4 revenue miss and Entrust acquisition uncertainty, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Leidos stands today.
- Size: Leidos is a $21 Bil company with $17 Bil in revenue currently trading at $161.53.
- Fundamentals: Last 12 month revenue growth of 6.5% and operating margin of 11.8%.
- Liquidity: Has Debt to Equity ratio of 0.25 and Cash to Assets ratio of 0.07
- Valuation: Leidos stock is currently trading at P/E multiple of 14.7 and P/EBIT multiple of 10.1
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 33.5% within a year. See LDOS Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside Low valuation – making the stock Attractive. For details, see Buy or Sell LDOS Stock
That brings us to the key consideration for investors worried about this fall: how resilient is LDOS stock if markets turn south? This is where our downturn resilience framework comes in. Suppose LDOS stock falls another 20-30% to $113 – can investors comfortably hold on? Turns out, the stock saw an impact slightly worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- LDOS stock fell 30.4% from a high of $110.49 on 2 December 2022 to $76.92 on 16 May 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 4 December 2023
- Since then, the stock increased to a high of $201.39 on 11 November 2024 , and currently trades at $161.53
| LDOS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -30.4% | -25.4% |
| Time to Full Recovery | 202 days | 464 days |
2020 Covid Pandemic
- LDOS stock fell 42.5% from a high of $123.22 on 18 February 2020 to $70.83 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 16 February 2024
| LDOS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -42.5% | -33.9% |
| Time to Full Recovery | 1,425 days | 148 days |
2018 Correction
- LDOS stock fell 29.8% from a high of $71.99 on 21 August 2018 to $50.54 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 30 April 2019
| LDOS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -29.8% | -19.8% |
| Time to Full Recovery | 127 days | 120 days |
2008 Global Financial Crisis
- LDOS stock fell 21.0% from a high of $85.96 on 5 June 2008 to $67.88 on 21 May 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 29 August 2019
| LDOS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -21.0% | -56.8% |
| Time to Full Recovery | 3,752 days | 1,480 days |
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