10 Best Performing Cybersecurity Stocks in 2024

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

Year-to-Date Performance as of November 8: 83.72%

Number of Hedge Fund Holders: 38

Leidos Holdings, Inc. (NYSE:LDOS), headquartered in Reston, Virginia, is a U.S.-based leader in defense, aviation, IT, and biomedical research. The company provides comprehensive cybersecurity solutions spanning offensive, defensive, and cyber-physical systems, with expertise in areas such as zero trust and quantum cryptography. A major partner to the U.S. government, particularly the Department of Defense and Department of Homeland Security, Leidos Holdings, Inc. (NYSE:LDOS) also offers PACKIT™ (Proven, Analytic-Centric Kill Chain Implementation and Transformation) solutions, which help businesses strengthen their cybersecurity posture.

In Q3 2024, Leidos Holdings, Inc. (NYSE:LDOS) reported strong financial performance, achieving its sixth consecutive quarter of growth. Highlights include a record adjusted EBITDA margin of 14.2% and a 44% increase in adjusted diluted EPS, while quarterly revenue reached $4.19 billion, marking a 7% year-over-year increase. Additionally, the company raised its 2024 revenue guidance to between $16.35 billion and $16.45 billion, with adjusted EBITDA guidance in the high 12% range.

On November 5, JPMorgan raised its price target for Leidos Holdings, Inc. (NYSE:LDOS) to $205 from $185, maintaining an Overweight rating. This adjustment reflects Leidos’ strong performance in the Federal IT Services sector and its success in mitigating financial risks, especially within its Health & Civil division, where it excelled in the VA medical exams re-compete.

While we acknowledge the potential of LDOS, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than LDOS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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