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    Leidos Holdings (LDOS) On DHL Partnership And The Case For A Re Rating

    Simply Wall St·07/24/2026 16:35:55
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    Leidos Holdings (LDOS) and DHL Supply Chain have agreed to work together on the UK Ministry of Defence’s Future Defence Support Services programme, combining systems integration with large-scale logistics and advanced, technology-led capabilities.

    See our latest analysis for Leidos Holdings.

    At a share price of $110.33, Leidos Holdings has seen short term share price momentum firm up, with a 1 month share price return of 3.98% and a 7 day gain of 1.88%. This follows a steeper 90 day share price decline of 24.46% and a year to date share price decline of 39.86%. The 3 year total shareholder return of 23.87% contrasts with a weaker 1 year total shareholder return of 31.71%. This suggests earlier gains have recently cooled as investors reassess growth prospects and risk.

    If news like the DHL alliance has you thinking about where else the market is re-rating opportunities, it could be a good moment to broaden your search with the 35 power grid technology and infrastructure stocks

    Leidos Holdings now trades about 36% below the average analyst price target and at an even steeper implied discount to some intrinsic value estimates, yet the share price slide and modest revenue and net income growth rates point to caution. Is this a mispriced opportunity or a fair reflection of the risks?

    Most Popular Narrative: 33.2% Undervalued

    The most followed narrative for Leidos Holdings puts fair value at $165.27, well above the last close of $110.33. This frames the current gap as valuation-driven rather than purely sentiment driven.

    Accelerating customer demand for digital modernization, AI powered solutions, and autonomous systems in defense, healthcare, and intelligence plays to Leidos' strengths and is leading to higher quality, higher margin contracts that improve net margins, as these capabilities command premium pricing and are in areas of secular growth.

    Read the complete narrative.

    Wondering what earnings profile justifies that valuation gap? The narrative leans on steady contract backed growth, firm margins, and a future profit multiple that still sits below many peers.

    Result: Fair Value of $165.27 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, for this Leidos Holdings narrative to play out, heavy dependence on U.S. government contracts and ongoing acquisition integration risk could quickly challenge those valuation assumptions.

    Find out about the key risks to this Leidos Holdings narrative.

    Next Steps

    Seeing mixed sentiment around Leidos Holdings and not sure which side you lean toward yet? You can take a closer look at the full picture, including both the risks investors are watching and the potential rewards that are drawing interest, by reviewing the 5 key rewards and 1 important warning sign

    Looking for more investment ideas beyond Leidos Holdings?

    If Leidos Holdings has sharpened your focus on valuation and risk, do not stop here. Broaden your watchlist with a few targeted stock ideas built from data driven screeners.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.