Leonardo DRS (DRS) Stock: Buy, Sell, or Hold?
DRS - Leonardo DRS, Inc. Common Stock
$38.23
1.31 (3.55%)
â˛
5d:
+6.22%
30d:
+4.45%
90d:
-14.32%
WAIT
LOW Confidence
Analysis Updated: Nov 3, 2026 12:00 AM ET
Earnings: Oct 29, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
âšī¸ NEUTRAL: DRS is fairly priced but lacks strong directional signals. At -6.3% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
âšī¸ NEUTRAL: DRS is fairly priced but lacks strong directional signals. At -6.3% expected growth, valuation appears cheap. Wait for clearer setup or better entry on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$12.10
Based on -18.8% avg growth
INTRINSIC VALUE TODAY
$7.51
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 $38.23, which is considered slightly high relative to its 30-day fair value range of $34.84 to $37.28. From a valuation perspective, the stock is trading at a discount (Forward PE: 24.4) compared to its historical average (29.6). Remarkably, the market is currently pricing in an annual earnings decline of 6.3% over the next few years. This pessimistic expectation contrasts with the company's recent 65.4% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, DRS is in a strong downtrend. Immediate support is located at $33.12, while resistance sits at $40.41. The stock is showing strong short-term momentum, up 3.5% recently.
Market Sentiment: DRS scores 23/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Wall Street analysts see significant upside, with an average price target of $52.25 (+41.5%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, DRS is in a strong downtrend. Immediate support is located at $33.12, while resistance sits at $40.41. The stock is showing strong short-term momentum, up 3.5% recently.
Market Sentiment: DRS scores 23/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. Wall Street analysts see significant upside, with an average price target of $52.25 (+41.5%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
SLIGHTLY HIGH
Historical Trading Range
$34.84 -
$37.28
Company Quality Score
34/100
(SELL)
Volume Confirmation
HIGH
Confidence Score
47.6%
Protect Your Profits
Holding DRS? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- BEARISH: Weak technical setup (23/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+3.5%)
- BULLISH: Trading 41.5% below Wall St target ($52.25)
- WARNING: Composite score 34/100 in the bottom quintile â this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$34.84 -
$37.28
Current vs Trading Range
SLIGHTLY HIGH
Support & Resistance Levels
Support Level
$33.12
Resistance Level
$40.42
Current Trend
Strong Downtrend
Technical data as of
Nov 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
24.40
Wall Street Target
$52.25
(+41.5%)
Revenue Growth (YoY)
11.0%
Earnings Growth (YoY)
65.4%
Profit Margin
9.4%
Valuation Discount vs History
-6.3% cheaper
PE vs Historical
24.4 vs 29.6
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-6.3%
(market-implied from PE analysis)
1-Year Target
$34.59
(-6%)
2-Year Target
$32.41
(-12%)
3-Year Target
$30.37
(-18%)
3-Yr Target (if PE normalizes)
(PE: 24â30)
$36.84
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 24.4, Growth: -41.5%)
$36.46
(+-1%)
Base:
(SPY PE: 19.9, Growth: -41.5%)
$29.67
(-20%)
Bear:
(PE: 16.9, Growth: -41.5%)
$25.22
(-32%)
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Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (28x PE), but valuation improves significantly next year (24x PE) as earnings recover.
Trailing PE: 27.71 | Current EPS (TTM): $1.36
Bull Case
$46.11
(+25%)
Analyst growth 11.2%, PE expands to 30.5
Base Case
$41.92
(+14%)
Market implied 11.2%, PE stable at 27.7
Bear Case
$25.62
(-31%)
Severe decline -20.0%, PE contracts to 23.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
đĄ
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 24.4 to 29.6
Stabilization Target:
$44.78
(+21.3%)
PE Expansion Potential:
+21.3%
Share & Embed Analysis
Last updated: November 03, 2026 11:53 AM ET
Data refreshes hourly during market hours. Next update: 12:53 PM
Data refreshes hourly during market hours. Next update: 12:53 PM
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Technical Signals Check
Is DRS showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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