Leidos Emerges as one of the best tech stock of 2024
Though there has been tremendous focus on semiconductor stock amongst the technology stocks, but there are other sub-segments which have been performing well. IT Services has also delivered stock with over 30% price gain since the beginning of year. While majority of semiconductor stocks have faced price correction in the month of April, one IT services stock has continued to shine. Leidos has emerged as one of the best Tech stock of the 2024.
Leidos Holdings Inc (LDOS) was trading at $108 in the beginning of the year and by April end it had delivered gain 30% YTD. In the month of April LDOS share price rose by 8% when other technology stocks were hammered in the market, Meta & ASML declined by 12%, and then LDOS closed at $140 on 30TH April with the biggest gain amongst the technology stocks listed on Nasdaq.
Table: Best Tech Stock of 2024
| Company | Symbol | 30-Apr | Growth YTD % | April Growth % |
|---|---|---|---|---|
| NVIDIA Corp | NVDA | 864.0 | 79% | -4% |
| Micron Technology Inc | MU | 113.0 | 37% | -9% |
| Leidos Holdings Inc | LDOS | 140.2 | 30% | 8% |
| Applied Materials Inc | AMAT | 198.7 | 29% | -5% |
| Meta Platforms Inc | META | 430.2 | 24% | -12% |
Leidos Holdings is a very niche player in the technology sector as it caters to the aviation, healthcare and defense & intelligence, which is witnessing unprecedented boom in the recent history due to back to back regional security issues which have create huge demand for defense tech equipment. Leidos is listed on NYSE and part of S&P500.
Business Verticals: Leidos is a leader in government services horizontal to it business and is witnessing increased spend form the governments. LDOS defense portfolio comprises of airborne capabilities for armed forces, autonomous unmanned vehicle solutions and technology for command and cybersecurity measures. As the demand for all such solutions have sky rocketed in the recent times and is expected to remain for medium-term period of another 2-3 years.
Financial Performance Q1 2024:
- Leidos reported 7% increase in the Q1 revenues on Y-o-Y basis to $3.9 bn.
- Company’s diluted Earnings Per Share (EPS) were up by 77% Y-o-Y basis.
- Adjusted EBITDA of Leidos witnessed notable growth of 42% Y-o-Y basis.