Leidos Holdings, Inc. (NYSE:LDOS) recently announced that it has been awarded a task orders by the Department of Health and Human Services (HHS) to provide intelligent automation and artificial intelligence (IAAI) solutions as well as services. The contract value is estimated at $49 million over a five-year base period.
Courtesy of lower error rate, incredible precision, accuracy and speed, this AI technology is gaining popularity.
Reasons for Choosing Leidos Holdings
The company provides services and solutions in the defense, intelligence, civil and health markets in the United States as well as globally. With expertise, the company is applying powerful analytic tools for superior performance and protection. Using its experience and technical capabilities, Leidos Holdings will deploy innovative IAAI solutions through machine learning, deep learning, machine vision, blockchain, microservices and robotic process automation.
Moreover, Leidos Innovations Center can provide technologies that deliver IAAI proofs of concept. This will provide innovative Lab-as-a-Service environments for collaborative research, development and rapid prototyping.
Other Contract Wins
The company is winning contracts for cost-effective defense solutions from the Pentagon as well as other U.S. allies. More contract wins are key growth drivers for Leidos Holdings. In fact, these contracts tend to bolster the backlog. Evidently, at the end of first-quarter 2019, the company’s total backlog amounted to $21.5 billion compared with $20.8 billion at the end of the fourth quarter. An increase in backlog indicates the quality of products supplied by the company and inclination of the customers toward the same.
Zacks Rank & Price Performance
Leidos Holdings currently carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of the company have rallied 35.1% in the past 12 months compared with the industry’s rise of 10%.
Other Key Picks
Some other top-ranked stocks in the same sector are Wesco Aircraft Holdings, Inc (NYSE:WAIR) , Northrop Grumman Corp (NYSE:NOC) and Textron Inc (NYSE:TXT) , each carrying a Zacks Rank #2.
Wesco Aircraft’s long-term growth estimates are currently pegged at 12%. The Zacks Consensus Estimate for 2019 earnings has moved up 3.7% to 84 cents in the past 60 days.
Northrop Grumman came up with average positive earnings surprise of 18.50% in the last four quarters. The company’s long-term growth is currently projected at 12.80%.
Textron delivered average positive earnings surprise of 7.62% in the last four quarters. The company’s long-term growth estimates are currently pegged at 12.60%.
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Leidos Holdings, Inc. (LDOS): Free Stock Analysis Report
Wesco Aircraft Holdings, Inc. (WAIR): Free Stock Analysis Report
Northrop Grumman Corporation (NOC): Free Stock Analysis Report
Textron Inc. (TXT): Free Stock Analysis Report
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