Here’s Why Investors Hold Leidos Holdings (LDOS)

Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 14.8% compared to a 7.4% return for the Russell 2500 Index. For the year 2022, the fund returned -19.0% compared to a -18.4% return for the benchmark. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Wedgewood Partners highlighted stocks like Leidos Holdings, Inc. (NYSE:LDOS) in its Q4 2022 investor letter. Headquartered in Reston, Virginia, Leidos Holdings, Inc. (NYSE:LDOS) provides services and solutions in the defense, intelligence, civil, and health markets. On March 7, 2023, Leidos Holdings, Inc. (NYSE:LDOS) stock closed at $96.52 per share. One-month return of Leidos Holdings, Inc. (NYSE:LDOS) was -2.47%, and its shares lost 6.19% of their value over the last 52 weeks. Leidos Holdings, Inc. (NYSE:LDOS) has a market capitalization of $13.217 billion.

Wedgewood Partners made the following comment about Leidos Holdings, Inc. (NYSE:LDOS) in its Q4 2022 investor letter:

“Leidos Holdings, Inc. (NYSE:LDOS) was a top contributor to portfolio performance during the 4th quarter. The Company ended the quarter with a strong adjusted book to bill ratio of about 1.4X. While the significant change in the global defense situation to date has caused some near-term pauses and noise around the ramping of different projects and priorities, Leidos is positioned exceedingly well as a defense contractor particularly to the U.S. and its allies, as we expect a significant increase in U.S. government defense and civilian spending during fiscal 2023. This increased spending should in turn flow through to Leidos’ order book, as they focus on modernizing IT environments and cybersecurity. We continue to hold Leidos has a top weighting as it still trades at historically attractive forward earnings multiple against the backdrop of a new “Cold War.””

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Leidos Holdings, Inc. (NYSE:LDOS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held Leidos Holdings, Inc. (NYSE:LDOS) at the end of the fourth quarter which was 35 in the previous quarter.

We discussed Leidos Holdings, Inc. (NYSE:LDOS) in another article and shared Wedgewood Partners’ views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.