Leidos (LDOS) is an Important Partner of the US Department of Defense. But now Health Services are Driving Sales Growth. The Share is Able to Break out to a new all-Time High Thanks to Better Margins.

Leidos (LDOS) remains a very important player on the US market. The stock is likely to draw its fourth consecutive pivotal point on the chart and break out to a new all-time high. The software manufacturer sells solutions for information security, system integration and data analysis in the three markets of national security, healthcare and industrial applications. Its customers include both US and non-US police authorities, intelligence agencies, health authorities and military facilities. The company has a close relationship with the US Department of Defense.

The company has now reported a year-on-year increase in turnover of 7% to $4 billion. This was due to increased demand in all customer segments, particularly in Managed Health Services. Leidos offers comprehensive managed health services through its Leidos QTC Health Services division. These services include medical examinations, diagnostic tests and fully automated reporting tailored specifically to the needs of patients and customers. With a network of over 15,000 providers in 50 medical specialties, Leidos QTC Health Services provides a wide range of patients with efficient and high-quality healthcare services.

Overall, the company posted impressive EPS of $2.29, beating the consensus of $1.70. This was followed by an increase in full-year guidance as the company is able to raise both its revenue and margin target. EPS is now expected to land at $8.40-8.80 instead of the previous $7.50-7.90.

Leidos Holdings (ISIN US5253271028): Estimates seem to have been moderated. The forward P/E 2024 ratio is now 16 and EPS is also expected to grow at a double-digit rate next year. We see another new all-time high.

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