Down -12.67% in 4 Weeks, Here's Why Leidos (LDOS) Looks Ripe for a Turnaround

Core Viewpoint - Leidos (LDOS) is experiencing significant selling pressure, with a 12.7% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analysts predicting better earnings than previously expected [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - LDOS has an RSI reading of 27.46, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that LDOS will report improved earnings, with a 3.2% increase in the consensus EPS estimate over the last 30 days [6]. - An upward trend in earnings estimate revisions typically correlates with price appreciation in the near term [6]. Group 3: Analyst Ratings - LDOS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [7].