Leidos continues to spur your returns

Article Excerpt

We first recommended Leidos to you as buy in our December 2017 issue at $62; your shares then rose to $125 in February 2020 before the coronavirus outbreak pulled down the market. Even so, Leidos is still up an impressive 50% since our initial 2017 recommendation. Your long-term prospects with this stock remain strong. Leidos provides critical services to U.S. government agencies, which helps cut your risk at a time when many businesses have slashed spending. In addition, the company’s latest acquisition is set to further build investor value. LEIDOS HOLDINGS INC. $93 (New York symbol LDOS; Manufacturing sector; Shares outstanding: 141.4 million; Market cap: $13.2 billion; Dividend yield: 1.5%; Takeover Target Rating: Highest; www.leidos.com) is a buy. The company took its current form in August 2016 when Lockheed Martin (New York symbol LMT) separated its Information Systems & Global Solutions (IS&GS) business and then merged it with Leidos. The new company generates value for investors through three information technology units: Defence Solutions (49% of 2019 revenue) provides software…