Time To Buy The Dip In Leidos Stock?
Leidos (LDOS) stock has fallen by 14.6% in less than a month, from $160.64 on 8th Apr, 2026 to $137.19 now. Should you buy this dip?
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, LDOS stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 23% , with median peak return reaching 38%. We define sharp dip as stock going down 20% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
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| Period | Past Median Return |
|---|---|
| 1M | 6.3% |
| 3M | 8.5% |
| 6M | 4.8% |
| 12M | 23.4% |
Historical Dip-Wise Details
LDOS had 7 events since 1/1/2010 where the dip threshold of -20% within 30 days was triggered
- 38% median peak return within 1 year of dip event
- 315 days is the median time to peak return after a dip event
- -11% median max drawdown within 1 year of dip event
| 30 Day Dip | LDOS Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | LDOS | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 23% | 38% | -11% | 315 | ||||
| 12182024 | -23% | 2% | 29% | 38% | -13% | 321 | ||
| 3162020 | -22% | -25% | 23% | 46% | -9% | 315 | ||
| 12212018 | -21% | -14% | 93% | 94% | -2% | 364 | ||
| 2012016 | -21% | -6% | 48% | 59% | -11% | 309 | ||
| 3272014 | -21% | 2% | 23% | 37% | -4% | 361 | ||
| 9302013 | -26% | 2% | -22% | 8% | -25% | 52 | ||
| 9012011 | -22% | -10% | -3% | 5% | -18% | 202 | ||
1Y Refers to 1 year or time since recent dip, whichever is smaller
Leidos Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 3.1% | Pass |
| Revenue Growth (3-Yr Avg) | 6.1% | Pass |
| Operating Cash Flow Margin (LTM) | 10.2% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 10.4 | |
| => Cash To Interest Expense Ratio | 5.5 |
Not sure if you can take a call on LDOS stock? Consider portfolio approach
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