Leidos, SoundHound, CMC, Unity, Southwest: Trending by Analysts

Analysts are intrested in these 5 stocks: ( (LDOS) ), ( (SOUN) ), ( (CMC) ), ( (UBX) ) and ( (LUV) ). Here is a breakdown of their recent ratings and the rationale behind them.

Leidos Holdings has been downgraded to a ‘Hold’ by analyst Peter Arment, who cites a challenging bookings environment and potential contract terminations as reasons for caution. Despite a strong performance in the first quarter of 2025, the company faces risks from government contract terminations and a slowdown in government outlays, particularly from the National Institutes of Health. The stock is expected to remain in a trading range, with a reduced price target of $163.

SoundHound AI, Inc. is receiving positive attention from analyst James Fish, who initiated coverage with a ‘Buy’ rating and a $12 price target. The company is seen as a direct play on the voice-AI revolution, with its Houndify platform offering significant opportunities in the automotive, IoT, and restaurant sectors. Despite challenges such as low profitability and competition, SoundHound’s competitive advantages and market potential make it an attractive investment.

Commercial Metals Company (CMC) has been upgraded to ‘Buy’ by analyst Timna Tanners, who sees the company as a relative outperformer in the steel industry. With strong demand for construction materials and a strategic focus on high-margin markets, CMC is well-positioned for growth. However, analyst Bill Peterson has initiated coverage with a ‘Hold’ rating, citing concerns about market uncertainty and new capacity ramping up, which could impact demand.

Unity Biotechnology has been downgraded to ‘Hold’ by analyst Matthew Caufield, following management changes and a missed primary endpoint in a key study. The company’s future direction remains uncertain, with strategic alternatives being explored for its senolytic candidate UBX1325. Despite some promising results in clinical trials, the lack of clarity on the company’s strategic path warrants a cautious approach.

Southwest Airlines has been upgraded to ‘Hold’ by analyst Sheila Kahyaoglu, who highlights the company’s strategic initiatives aimed at improving profitability. With plans to optimize revenue through yield management and cost-cutting measures, Southwest is poised for growth. The airline’s focus on maximizing revenue per square foot and enhancing customer loyalty programs is expected to drive future earnings.