LDOS · Leidos Holdings, Inc.

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Leidos Holdings, Inc., together with its subsidiaries, provides services and solutions for government and commercial customers in the United States and internationally. The National Security & Digital segment provides national security software; services by using artificial intelligence and machine learning to coordinate sea, ground, air, and space to help warfighters; offensive, defensive, and physical cyber operation solutions; intelligence analysis, operational support, logistics operations, security, linguistics, force production, biometrics, chemical, biological, radiological, nuclear, and explosives, energetics, training, and other services; and Digital Modernization and transformation services. The Health & Civil segment offers air traffic control systems; health mission software; managed health services; infrastructure management and operation; logistical operations and information technology support; and life science research and development support services.

Close · 3M

-40.39%

Held by 1 AI ETF

PQUS0.620%

as of Jul 21

Signal performance

Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.

Buy signals1

Win rate100% (1/1)

Avg buy return+5.17%

PQUSnow 0.620% of fund2 signals

PQUS · Weight increase · 2d

The weight history for Leidos Holdings in PQUS shows a clear, stepped increase from a baseline of approximately 0.50% to 0.63% on June 26th, following a period of minor fluctuations. This particular shift aligns with PQUS’s stated strategy of periodic rebalances within its US large-cap universe, suggesting the AI ranking system identified a compelling entry point for the Information Technology firm. The company’s current price of $100.00, precisely half its 52-week high after significant price depreciation over the last 90 days, likely played a key role in this re-evaluation. Despite these recent market pressures reflected in its -38.1% 90-day return, Leidos's 27.24% return on equity and 13.08 price-to-earnings ratio offer an attractive profile for the fund’s measured turnover approach, leading to this precise upward adjustment under its sector-balance and concentration rules.

weight 0.490% → 0.630% (+0.140 pp)·stock down 22.1% in the 30 days before

Jun 26·entry $101.76·now $107.02Drifting

+5.17%

since Jun 26

PQUS · Weight decrease · 2d

Trading near the lower end of its 52-week range at $126.01, which represents 63% of its 52-week high, LDOS has experienced a -20.0% 30-day return and a -34.0% 90-day return. This significant negative price momentum, alongside a relatively modest revenue growth of 2.34% despite a 27.24% ROE, likely prompted Pictet Asset Management's AI ranking system to reduce exposure. The consecutive weight decrease observed on May 22 and May 23, following a brief increase and subsequent stabilization, indicates a periodic rebalance adjustment by the AI system rather than a daily reaction. Given PQUS's strategy of managing ~165 US large-cap stocks with measured turnover and sector-balance rules, the AI appears to be trimming its holding in a declining asset that meets its criteria for reassessment.

weight 0.320% → 0.300% (-0.020 pp)·stock down 14.6% in the 30 days before

May 23·entry $128.12·now $107.02

-16.47%

since May 23

Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.

Buffett-style framework

Fails the frameworkas of May 25

The AI ETF PQUS is decreasing its weight in Leidos, which aligns with the framework's 'Fail' verdict stemming from insufficient data to confirm robust, long-term financial health and valuation. This signals a potential lack of conviction, mirroring the analytical challenges faced here.

Circle of CompetenceLeidos operates in predictable government IT services with long-term contracts and essential functions, allowing for reasonable projection of ten-year cash flows.
Economic MoatLeidos benefits from significant switching costs, deep expertise, a strong reputation, and high regulatory barriers in government contracting, forming a durable economic moat.
ManagementThe provided data does not offer sufficient information to assess management's candor, capital allocation discipline, or skin in the game.
Financial HealthAlthough current ROE is strong, the absence of 10-year ROE consistency, operating margin trends, detailed debt analysis, and owner earnings prevents a full assessment of financial health against framework criteria.
Margin of SafetyThere is insufficient data to perform a conservative estimate of intrinsic value and determine if a defensible margin of safety exists at the current price.

Leidos operates within a stable circle of competence and possesses a strong economic moat within government IT services; however, a comprehensive evaluation against the framework is hindered by a lack of historical financial data for key metrics like long-term ROE and owner earnings. Consequently, the company fails to meet the strict financial health and margin of safety criteria for a 'Pass' without more information.

Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.