DRS Stock Analysis: Buy, Sell, or Hold?
DRS - Leonardo DRS, Inc. Common Stock
$42.67
1.72 (4.20%)
▲
5d:
-6.71%
30d:
-12.49%
90d:
-1.34%
HOLD
LOW Confidence
Analysis Updated: Jun 30, 2026 12:00 AM ET
Earnings: Jul 29, 2026
27d
Smart Money Accumulation
None View Scanner →
Strength: 6.6/10
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: DRS shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: DRS shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$51.24
Based on 7.4% avg growth
INTRINSIC VALUE TODAY
$31.81
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DRS is currently trading at $42.67, which is considered oversold relative to its 30-day fair value range of $44.05 to $47.96. The stock's valuation (Forward PE: 29.6) is in line with its historical norms (30.9). Remarkably, the market is currently pricing in an annual earnings decline of 1.4% over the next few years. This pessimistic expectation contrasts with the company's recent 22.0% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, DRS is in a uptrend. Immediate support is located at $40.40, while resistance sits at $47.24. The stock is showing strong short-term momentum, up 4.2% recently.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $52.90 (+24.0%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, DRS is in a uptrend. Immediate support is located at $40.40, while resistance sits at $47.24. The stock is showing strong short-term momentum, up 4.2% recently.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $52.90 (+24.0%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$44.05 -
$47.96
Company Quality Score
57/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
84.3%
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View Profit Protection PlanAll Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+4.2%)
- BULLISH: Trading 24.0% below Wall St target ($52.90)
- CAUTION: Recommendation downgraded due to -6.7% 5-day decline
Trading Range Analysis
30-Day Trading Range
$44.05 -
$47.96
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$40.40
Resistance Level
$47.24
Current Trend
Uptrend
Technical data as of
Jun 30, 2026
Fundamental Context
Forward P/E (Next Year Est.)
29.65
Wall Street Target
$52.90
(+24.0%)
Revenue Growth (YoY)
5.9%
Earnings Growth (YoY)
22.0%
Profit Margin
7.8%
Valuation Discount vs History
-1.4% cheaper
PE vs Historical
29.7 vs 30.9
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-1.4%
(market-implied from PE analysis)
1-Year Target
$42.07
(-1%)
2-Year Target
$41.48
(-3%)
3-Year Target
$40.90
(-4%)
3-Yr Target (if PE normalizes)
(PE: 30→31)
$42.63
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 29.6, Growth: 10.7%)
$57.90
(+36%)
Base:
(SPY PE: 21.8, Growth: 10.7%)
$42.53
(0%)
Bear:
(PE: 18.5, Growth: 10.7%)
$36.15
(-15%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (38x PE), but valuation improves significantly next year (30x PE) as earnings recover.
Trailing PE: 38.27 | Current EPS (TTM): $1.07
Bull Case
$60.59
(+42%)
Analyst growth 34.5%, PE expands to 42.1
Base Case
$55.08
(+29%)
Market implied 34.5%, PE stable at 38.3
Bear Case
$27.85
(-35%)
Severe decline -20.0%, PE contracts to 32.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 29.6 to 30.9
Stabilization Target:
$44.47
(+4.2%)
PE Expansion Potential:
+4.2%
Share & Embed Analysis
Last updated: July 01, 2026 3:23 AM ET
Data refreshes hourly during market hours. Next update: 4:23 AM
Data refreshes hourly during market hours. Next update: 4:23 AM
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Technical Signals Check
Is DRS showing a specific setup today?
Insider Activity (6 Months)
1
Buys
6
Sells
Net
INSIDERS SELLING
Recent Transactions
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