Would You Still Hold Leidos Stock If It Fell Another 30%?
Leidos (LDOS) stock is down 6.0% in 21 trading days. Based on the search results for Leidos (LDOS) in March 2026, the company reported strong fourth quarter and fiscal year 2025 results with positive guidance for fiscal year 2026, indicating growth in revenues and earnings. Leidos also completed significant debt offerings to enhance financial flexibility and successfully rolled out its Terminal Flight Data Manager system ahead of schedule. Analysts have also identified Leidos as a strong value stock. Therefore, the search grounding does not provide specific negative reasons related to Leidos’s segments, such as “slowing growth in its edge computing and security segments,” that would explain a recent stock slide.
However, adapting the sentiment of the original line, and acknowledging the user’s premise of a -6.0% slide, here is a variation:
The recent slide reflects market dynamics not tied to Leidos’s strong Q4/FY25 results or positive FY26 guidance, yet such drops ask: 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.
- Rio Tinto’s Next Chapter: Growth, Guidance And Global Shifts
- Forget Timing the Bottom: Earn 10% While You Wait for BKNG on Sale
- What Could Send Micron Technology Stock Soaring
- Why U.S. Stocks Aren’t Crashing With Iran War
- Can Eli Lilly Stock Withstand These Pressures?
- Cash Rich, Low Price – Docusign Stock to Break Out?
- Size: Leidos is a $22 Bil company with $17 Bil in revenue currently trading at $176.70.
- Fundamentals: Last 12 month revenue growth of 3.1% and operating margin of 12.2%.
- Liquidity: Has Debt to Equity ratio of 0.24 and Cash to Assets ratio of 0.08
- Valuation: Leidos stock is currently trading at P/E multiple of 15.3 and P/EBIT multiple of 10.5
- 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 $124 – 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 $176.70
| 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 |
Feeling jittery about LDOS stock? Consider portfolio approach.
Portfolios Win When Stock Picks Fall Short
Stocks soar and sink – the key is staying invested. A balanced portfolio helps you ride market volatility, boosts gains and reduces single stock risk.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? HQ Portfolio has posted more than 105% in cumulative return since inception, with less risk versus the benchmark index, as evident in HQ Portfolio performance metrics.