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LDOS — Oversold Bullish Reversal
Status: Invalidated
Scanner score: 20.0/100
Why this was flagged
LDOS was identified as a bullish technical setup based on the Oversold Bullish Reversal pattern. The scanner found a score of 20.0/100 using trend alignment, momentum, price action, volume, and risk-management rules. Monitor update: Latest daily-chart analysis no longer reports a bullish long setup.
Trade framework
Position-sizing example
These examples use the distance between the reference entry and stop-loss. They do not account for commissions, slippage, taxes, overnight gaps, or your personal account size.
Exit plan
- Stop-loss: Exit if the stop-loss is reached. Do not move the stop farther away to avoid taking the planned loss.
- Target 1: Consider taking partial profit when Target 1 is reached and reducing risk on the remaining shares.
- Target 2 or trailing exit: Consider closing the remaining position at Target 2, or use a disciplined trailing stop only if the trend remains strong.
- Time exit: Reassess or close a trade that fails to progress within the suggested holding window.
Technical chart
Daily closing price with moving averages and planned trade levels. This chart is a screening aid, not a guarantee of future results.
$1,000 educational outcome examples
These examples use a $1,000 position and fractional shares at the midpoint of the entry zone. Actual results can differ because of market gaps, fills, spreads, commissions, taxes, slippage, and changing conditions.
Easy explanation for new investors
Leidos Holdings, or LDOS, caught the scanner’s eye because its price might be getting too low. A computer program called a scanner looked at the stock’s history. It found a pattern called an "Oversold Bullish Reversal." This suggests the stock fell fast and might start climbing again. The scanner gave this idea a score of 20 out of 100. This is a low score, so it is not a strong signal. Another clue is the RSI. This is a meter for market energy. It reads 29. Usually, when this number is below 30, it means the stock is "oversold." That means many people have sold, and buyers might soon step in. However, the trading volume was normal, not high, which means few people were actively trading it recently.
What the price plan means
The scanner suggests watching LDOS between $129.54 and $130.50. This is the entry zone. The plan has safety stops. If the price drops to $127.11, the idea is considered broken, and you should stop watching it. This is called a stop loss. It limits how much value is lost. If the stock goes up, the first goal is $134.40. The second goal is $136.83. The reward-to-risk ratio is 2. This means the potential gain is twice the potential loss. For every dollar you might lose, you could gain two dollars. This math looks okay on paper.
What could make the idea fail
The plan can fail for many reasons. The stock might keep dropping instead of rising. The "oversold" status does not mean it will bounce back. It might stay low for a long time. Also, the low scanner score of 20 means this is not a top-pick. Normal volume suggests traders are not excited about the stock right now.
Important reminder
This is just information, not advice. Markets are unpredictable. Never put in money you cannot afford to lose. Always do your own research or talk to a professional before making decisions.
Recent news context
This automated review is separate from the technical score. It summarizes recent related articles and does not predict price movement.
Overall context: Caution (High confidence)
Leidos Holdings exhibits a mixed profile with strong institutional interest but notable executive caution and contract risks. While the company benefits from new hypersonic weapons contracts and a strategic focus on advanced defense, several institutional investors have increased stakes. However, the news is tempered by recent insider selling from directors and analyst concerns regarding the critical VA medical disability exam contract. This contract represents a significant portion of revenue and earnings, and uncertainties surrounding its rebid have led to downward earnings estimate revisions. Consequently, while the stock shows signs of undervaluation and technical support, the presence of meaningful contractual risks and insider selling creates uncertainty for future performance.
Potentially supportive context
- Leidos is expanding its role in hypersonic weapons production, securing contracts that align with its NorthStar 2030 strategy.
- Multiple institutional investors, including HSBC Holdings and Allianz, increased their stakes in the second quarter.
- The company has initiated a stock repurchase program and continues to declare quarterly dividends.
Risks and caution items
- Directors Gary May and Noel Geer recently sold shares, indicating potential insider caution.
- The VA medical disability exam contract, accounting for ~30% of 2026 EPS, faces uncertain rebid outcomes.
- Analysts have revised earnings estimates downward due to apprehension about contract renewal requirements.
- TD Cowen reiterated a Hold rating with a $135 price target, citing significant contract concerns.
Latest reviewed article: Sep 10, 2026 4:25 pm
Recent related articles
Leidos Holdings is increasing its involvement in hypersonic weapons development and production, securing contracts for programs like Thermal Protection Shield and Common Hypersonic Glide Body. This strategic focus aligns with the company's NorthStar 2030 strategy and positions it to benefit from growing…
HighTower Advisors LLC increased its stake in Leidos Holdings, Inc. (NYSE:LDOS) by 11.6% in the second quarter, bringing its total holdings to 136,582 shares valued at $14.06 million. Other institutional investors have also adjusted their positions in LDOS. Additionally, two directors recently…
Wellington Management Group LLP increased its stake in Leidos Holdings, Inc. by 48.2% during the second quarter, acquiring an additional 12,034 shares, bringing its total holdings to 37,022 shares valued at $3,812,000. This institutional activity comes amidst other hedge funds also adjusting…
VIRGINIA RETIREMENT SYSTEMS ET Al has acquired a new stake of 108,650 shares, valued at $11.19 million, in Leidos Holdings, Inc. (NYSE:LDOS) during the second quarter. Other institutional investors have also adjusted their holdings in Leidos, and the company currently has an…
TD Cowen has reiterated a Hold rating on Leidos Holdings with a $135.00 price target, primarily due to concerns surrounding the rebid of the company's VA medical disability exam contract. This contract is a significant revenue driver, contributing an estimated $2 billion…
Hsbc Holdings PLC significantly increased its stake in Leidos Holdings, Inc. by 47.5% in the second quarter, now holding 415,545 shares valued at $42.41 million. Other institutional investors also made substantial changes to their positions in Leidos, which recently announced a share…
Allianz Asset Management GmbH increased its stake in Leidos Holdings, Inc. by 12.2% during the second quarter, now owning 306,889 shares valued at $31.6 million. Other institutional investors also adjusted their positions, while company insiders recently sold shares. Leidos reported strong Q2…
Nykredit A/S recently acquired a new stake in Leidos Holdings, Inc. (NYSE:LDOS), purchasing 43,938 shares valued at approximately $4.5 million in the second quarter. Other institutional investors also adjusted their positions in Leidos, which has seen its stock perform strongly, exceeding quarterly…
Important: Some returned articles may describe competitors, industry conditions, or related companies. Open the source before relying on an article.
Scanner confirmations
- RSI is near oversold territory with bullish candle confirmation.