58.87 -1.36 (-2.31%) Sell

LDOS investors looking to preserve capital

13 min read

LEIDOS HOLDINGS, INC. was among the worst performers today. It returned -2.31% to close at 58.87. It's recent 5 day performance has been +2.22%, -5.8%, -0.67%, +1.48% and -1.8%.

[Themes containing LDOS]

LDOS is currently in a down trend. The current bearish signal has generated a profit of +13.98% for investors in the last three months.


LDOS has been underperforming the SP500 index in recent time, after having outperformed till 19 Jan, 2016. Over the last 2 years 11 months and 3 days, LDOS underperformed the SP500 index on 46% days. Which indicates that on days LDOS underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

During the last three months LDOS was mostly loss making and delivered on average -0.26% per day. It's best return during this period (of +3.37%) was on Wednesday, 7 Nov, 2018. While it's worst loss in the same period (of -5.8%) was on Tuesday, 4 Dec, 2018. There was initially a bullish trend during this period which started on 10 Sep, 2018 and went on till 14 Sep, 2018. The bullish trend returned +1.66% to investors. This was followed by a bearish trend that started on 3 Oct, 2018 and ended on 8 Oct, 2018. This bearish trend lost -1.96% of investor capital.

On monthly basis, LDOS delivered losses in more months over the last year, than profits. LDOS delivered profits less regularly than SP500 index. LDOS significantly outperformed SP500 index in Jul 2018, when it returned +15.22% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. LDOS had a longer winning streak of losing months than SP500 index. It went down in 4 straight months (from Sep 2018 to Dec 2018) during which period it delivered -16.12%. It is interesting to note that both LDOS and SP500 index significantly outperform during months when quarterly/annual results are announced.

It's pointless to set goals if you are not going to try to hit them.
-- Don Connelly

LDOS is becoming more volatile overall. In comparison, the SP500 index is seeing a rise in volatility. During the last three months, there was a significant surge in LDOS's volatility from 14 Sep, 2018 to 29 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that LDOS has significant positive skewness in it's return distribution. This indicates that investors can expect LDOS to recover from drawdowns quickly. Which makes LDOS a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

SP500 index has more chance of extreme outcomes than LDOS. Therefore, SP500 must receive a lower allocation than LDOS in your portfolio. LDOS usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in LDOS), two large cap instruments that deserve special mention are CSCO and V. They have significantly outperformed the overall market.

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