Congressional Stalemate Over DHS Funding Continues
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 25 2026
0mins
Should l Buy LDOS?
Source: CNBC
- Congressional Stalemate: The ongoing dispute between Democrats and Republicans over funding for the Department of Homeland Security (DHS) has intensified, making it unlikely to reach an agreement before the upcoming Easter holiday, with long airport security lines impacting spring travel.
- Democratic Proposal Rejected: Senate Minority Leader Chuck Schumer labeled the Republican proposal as 'bad faith' and announced a counteroffer, emphasizing its reasonableness despite not detailing specific points, reflecting the Democrats' insistence on immigration enforcement changes.
- Republican Pushback: GOP leaders claim that Democrats are shifting their funding demands, highlighting that the current proposal ensures funding for TSA, Coast Guard, and FEMA, aiming to encourage Democrats to finalize an agreement to reopen DHS.
- Impact of DHS Shutdown: Since February, the shutdown of DHS has resulted in Transportation Security Administration employees missing paychecks and skipping work, leading to massive lines at airports nationwide, adversely affecting public travel experiences.
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Analyst Views on LDOS
Wall Street analysts forecast LDOS stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 156.470
Low
178.00
Averages
219.70
High
235.00
Current: 156.470
Low
178.00
Averages
219.70
High
235.00
About LDOS
Leidos Holdings, Inc. is a holding company, which operates through its wholly owned subsidiary, Leidos, Inc. (Leidos). The Company's segments include National Security & Digital, Health & Civil, Commercial & International and Defense Systems. Its National Security & Digital business provides technologically advanced services, solutions and products, as well as mission software capabilities for defense and intelligence customers in the areas of cyber, logistics, security operations and decision analytics. Its Health & Civil business provides services and solutions to federal and commercial customers in the areas of public health, care coordination, life and environmental sciences and transportation. Its Commercial & International business delivers a portfolio of products, services, and solutions aimed at securing national assets, modernizing energy and critical infrastructure, and enhancing mission outcomes. The Company serves government and commercial customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
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- Leadership Stability: Following the merger, Analogic's current CEO Tom Ripp will continue to lead the new company, ensuring business continuity and strategic alignment, which will enhance customer trust and market recognition.
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See More
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- Technological Integration Benefits: The new joint venture will combine Leidos' Security Enterprise Solutions with Analogic's detection technologies, which is anticipated to enhance efficiencies in research, development, and operations, thereby accelerating the market application of next-generation security screening technologies.
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See More
Saronic Secures $392 Million Navy Contract
- Innovative Funding: Saronic raised $1.75 billion in private funding last month from notable venture capital firms like Advent International and Andreessen Horowitz, boosting its valuation to $9.25 billion and significantly enhancing its market position in the unmanned warship sector.
- Production Capacity Expansion: The company plans to increase its Louisiana facility's Corsair production from 1,000 to 2,000 units annually while constructing a new shipyard, Port Alpha, to support its goal of producing 20 large Marauder vessels per year, further solidifying its competitive edge in Navy contracts.
- Navy Contract Approval: Saronic secured a $392 million contract for Corsair unmanned vessels, with plans to invest most of the funds into expanding production capacity, indicating strong demand and growth potential in the unmanned warship market.
- Vision for Industry Transformation: Saronic aims to accelerate production and scale through new funding, intending to reshape the entire shipbuilding industry, highlighting its crucial role in future military technology developments and potentially prompting strategic shifts among competitors.
See More
Overview of Building a New Robot Navy for the U.S.
- Production Capacity Expansion: Saronic secured a $392 million Navy contract, planning to invest $300 million to expand its Louisiana shipyard's capacity to produce 2,000 Corsair unmanned boats annually, significantly enhancing its market competitiveness.
- Funding Milestone: The company recently raised $1.75 billion in financing, valuing Saronic at $9.25 billion, with the funds primarily allocated for constructing larger, more advanced robotic warships, which is expected to reshape the entire shipbuilding industry.
- New Shipyard Development: Saronic is building a new shipyard named Port Alpha to support its goal of producing 20 Marauders annually, further strengthening its production capabilities and market share in the unmanned naval sector.
- Strong Market Demand: Although no IPO plans have been announced, Saronic's market valuation has reached $9 billion, indicating strong demand for its shares, with potential trading opportunities on Forge Global or the Nasdaq Private Market in the future.
See More
Impact of US-Iran Conflict on Defense Stocks
- Surge in Defense Spending: The U.S. is spending $2 billion daily in and around Iran, totaling $88 billion after 44 days of conflict, which exceeds the annual revenues of RTX, GD, and Lockheed, indicating significant growth opportunities in the defense sector.
- Weak Defense Stock Performance: Despite ongoing conflict, major defense contractors like General Dynamics, Lockheed Martin, and RTX have not seen significant stock price increases, reflecting market expectations for a short-term peace that may dampen investor interest in defense stocks in the near term.
- Textron Investment Opportunity: Textron's stock is trading close to 1x sales, and as a manufacturer of various military and civilian products, its V-22 Osprey tiltrotor aircraft may see increased usage in the conflict, highlighting its potential in the defense sector.
- Naval Shipbuilding Expansion: Leidos and Huntington Ingalls, as key military contractors, have competitive advantages in unmanned vessels and nuclear submarines, respectively, and are expected to benefit from the U.S. Navy's fleet expansion, showcasing significant long-term growth potential.
See More
Defense Stocks Decline Amid Iran Conflict
- Defense Stock Performance: Major defense stocks like General Dynamics (GD), Lockheed Martin (LMT), and RTX have seen declines over the past six weeks despite ongoing U.S.-Iran conflict, indicating weakened investor confidence amid expectations of a short-lived war and imminent peace.
- Massive Spending Impact: Economists from Harvard Kennedy School report that the U.S. is spending $2 billion daily in and around Iran, totaling $88 billion over 44 days, which exceeds RTX's annual revenue, highlighting the potential long-term implications of the conflict on the defense sector.
- Investment Opportunities: Despite the overall poor performance of defense stocks, investors are advised to consider buying during this downturn, with Textron (TXT) trading at 1.06 times sales, indicating its potential in meeting future military demands, especially as tensions in the Gulf escalate.
- Optimistic Industry Outlook: Companies like Leidos (LDOS) and Huntington Ingalls (HII) show promising growth potential, with Leidos averaging 20% annual earnings growth over the past five years and Huntington expected to achieve a 15% long-term growth rate, suggesting a potential recovery for the defense industry ahead.
See More
Analogic and Leidos to Merge Key Units for Global Security Imaging
- Merger Agreement: Analogic and Leidos have agreed to merge key business units, with the transaction expected to close in the second half of 2026, enhancing market competitiveness under the Analogic brand.
- Leadership Stability: Following the merger, Analogic's current CEO Tom Ripp will continue to lead the new company, ensuring business continuity and strategic alignment, which will enhance customer trust and market recognition.
- Strengthened Market Positioning: With a focus on advanced imaging, power, and motion control technologies for aviation security, medical, and industrial markets, the merger will further solidify Analogic's leadership in the global security imaging and detection sector, driving business growth.
- Future Growth Potential: This merger will not only integrate resources but also provide Analogic with broader market access and opportunities for technological innovation, expected to drive sustainable growth in the coming years.
See More
Leidos and Altaris Form Joint Venture for Security Solutions
- Joint Venture Formation: Leidos and investment firm Altaris have entered into a joint venture agreement aimed at enhancing global airport, border, and critical infrastructure security by integrating advanced security detection systems and imaging technologies, which is expected to drive innovation and improve efficiency.
- Technological Integration Benefits: The new joint venture will combine Leidos' Security Enterprise Solutions with Analogic's detection technologies, which is anticipated to enhance efficiencies in research, development, and operations, thereby accelerating the market application of next-generation security screening technologies.
- Market Growth Potential: Leidos will contribute approximately 1,500 employees and $625 million in projected 2026 revenue to the joint venture, which will focus on growth in the global detection and imaging market, further solidifying Leidos' leadership position in security technology.
- Strategic Investment Direction: The establishment of this joint venture aligns with Leidos' NorthStar 2030 strategy, indicating the company's commitment to continue investing in core growth areas to meet the increasing security demands arising from the growth of global travel and trade.
See More
