10 Best Information Technology Services Stocks to Buy Right Now

3. Leidos Holdings, Inc. (NYSE:LDOS)

Analyst Upside: 24.75%

No. of Hedge Fund Holders: 34

Leidos Holdings, Inc. (NYSE:LDOS) develops smarter technology solutions, particularly for customers in highly regulated industries. The company’s services are utilized across the defense, intelligence, civil, and health markets. The company serves the US government, international allies, and commercial clients.

Leidos Holdings, Inc.’s (NYSE:LDOS) National Security segment experienced 5.5% year-over-year growth in Q4 2024. Although the segment’s profit margin dropped slightly during Q4 due to project variations, its full-year margin exceeded expectations. The company expects its profit margin to continue the growth momentum in this segment. For 2025, the company anticipates its total revenue to increase by 4% year-over-year, reaching between $16.9 billion and $17.3 billion.

On February 12, Wells Fargo analyst Matthew Akers slightly downgraded the price target on LDOS shares from $199 to $197, maintaining an Overweight rating on the shares. Akers expects an upside to Leidos’ 2025 outlook for both top line and margins.