Leidos (LDOS): Valuation Check After New Three‑Year Hawai‘i Energy and EV Rebate Program Contract Renewal

Leidos Holdings (LDOS) just locked in another three year term running Hawai'i's Energy program and EV Charging Station Rebate initiative, extending a long standing partnership that quietly underscores its growing sustainability and grid modernization franchise.

See our latest analysis for Leidos Holdings.

That backdrop has helped support a solid upward trend, with Leidos’ share price at $186.63 and a strong year to date share price return of 30.24 percent, complementing a robust five year total shareholder return of 91.58 percent. This suggests momentum is building as investors lean into its growth and execution story.

If this kind of sustained performance has your attention, it is also worth exploring aerospace and defense stocks as a way to spot other defense linked names that could be setting up for similar long term stories.

With shares sitting well below analyst targets and a hefty implied discount to intrinsic value, is Leidos still flying under the radar for its AI and energy transition exposure, or is the market already pricing in the next phase of growth potential?

Most Popular Narrative Narrative: 14.4% Undervalued

Compared with the last close at $186.63, the most followed narrative anchors on a fair value near $218, implying meaningful upside still on the table.

The business mix is shifting towards recurring, service based and software driven revenue streams (logistics, health IT, cloud native platforms). This enhances earnings visibility and stability and is expected to support higher long term valuation multiples as the market recognizes improved predictability in cash flow and profit growth.

Read the complete narrative.

Want to see what powers that upside view, beyond a simple multiple re rating? The narrative leans on steady growth, resilient margins and shrinking share count. Curious how those moving parts combine into one punchy fair value call? Read on to unpack the full blueprint.

Result: Fair Value of $218.08 (UNDERVALUED)

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

However, sustained overreliance on U.S. federal budgets, along with intensifying competition for AI driven contracts, could squeeze margins and undermine those premium multiple assumptions.

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

Build Your Own Leidos Holdings Narrative

If the story so far does not quite match your view, or you would rather dive into the numbers yourself, you can build a custom narrative in minutes: Do it your way.

A great starting point for your Leidos Holdings research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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.

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