11 Best Cybersecurity Stocks to Buy According to Wall Street Analysts

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

Average Analyst Upside: 25.51%

Number of Hedge Fund Holders: 38

Leidos Holdings, Inc. (NYSE:LDOS), headquartered in Reston, Virginia, is a prominent U.S. leader in defense, aviation, IT, and biomedical research. The company offers comprehensive cybersecurity solutions, including offensive and defensive systems, cyber-physical protections, zero trust frameworks, and advancements in quantum cryptography.

On December 12, UBS initiated coverage on Leidos Holdings, Inc. (NYSE:LDOS) with a Neutral rating and a price target of $182. UBS emphasized the company’s solid performance, noting a consistent book-to-bill ratio of 1.1 to 1.2 over the past three years, reflecting stable growth. The research also pointed to new claims from the Veterans Benefits Administration as a driver of sustainable volume and favorable margins, following a strong showing in 2024. That said, while UBS projected Leidos’ 2025 earnings per share to exceed consensus estimates by 6%, it also acknowledged the company’s guidance for slower growth in 2025.

Leidos Holdings, Inc. (NYSE:LDOS) delivered its sixth consecutive quarter of growth in Q3 2024, achieving a record adjusted EBITDA margin of 14.2%, a 44% rise in adjusted diluted EPS, and a 7% revenue increase year-over-year to $4.19 billion. This performance led the company to raise its 2024 revenue guidance to $16.35 billion–$16.45 billion. Additionally, Leidos Holdings, Inc. (NYSE:LDOS) increased its dividend to $0.40 per share and secured $8.1 billion in net bookings, expanding its total backlog to $40.6 billion.