Leidos (LDOS) Expands Defense Role with New DISA Contract

Leidos Holdings, Inc. (NYSE:LDOS) is one of the 10 cheap Jim Cramer stocks to invest in. As per a news release on June 17 on the company’s website, it has received a five-year, $35 million award to support the Cross-Domain Enterprise Services program for the Defense Information Systems Agency (DISA). The company will oversee the design, engineering, and operations of DISA’s data-sharing platform, which supports the transfer of information between classified and unclassified networks.

At its latest earnings call, Leidos (NYSE:LDOS) management strongly emphasized the company’s “NorthStar 2030 strategy.” Following that, the company announced the acquisition of Kudu Dynamics in an all-cash transaction, valued at approximately $300 million, on May 28 (closed May 23). With the acquisition, Leidos (NYSE:LDOS) aims to accelerate the growth of its AI-enabled cyber capabilities for defense, intelligence, and homeland security customers.

Leidos (LDOS) Expands Defense Role with New DISA Contract

A close-up of an engineer working on the development of a new air navigation system.

Additionally, on June 17, when a caller inquired about the company, Cramer replied:

“Leidos, I like it. You know, look, I am worried that the defense budget may be cut, but this is homeland security. I think it’s a good opportunity. The stock’s come down a great deal. Let’s pull the trigger.”

Leidos (NYSE:LDOS) provides technology and engineering solutions in defense, cybersecurity, healthcare, energy, and infrastructure. The company’s products include national security software, air traffic management systems, power grid support, and border security technologies.

While we acknowledge the potential of LDOS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.