DiamondRock Hospitality (DRH) Stock: Buy, Sell, or Hold?
DRH - DiamondRock Hospitality Company
$12.20
0.02 (0.16%)
▲
5d:
+1.16%
30d:
-0.25%
90d:
+3.04%
BUY
MODERATE Confidence
Analysis Updated: Sep 11, 2026 12:00 AM ET
Earnings: Nov 05, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: DRH shows positive signals but monitor for confirmation. Market pricing in 1.0% annual growth which appears achievable. Moderate conviction.
💡 BUY OPPORTUNITY: DRH shows positive signals but monitor for confirmation. Market pricing in 1.0% annual growth which appears achievable. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$6.71
Based on -10.2% avg growth
INTRINSIC VALUE TODAY
$4.17
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 20.1x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DRH is currently trading at $12.20, which is considered slightly low relative to its 30-day fair value range of $12.10 to $12.87. The stock's valuation (Forward PE: 20.7) is in line with its historical norms (20.1). At these levels, the market is pricing in 1.0% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, DRH is in a strong uptrend. The price is currently testing key support at $11.85. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: DRH scores 68/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $13.71 (+12.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DRH is in a strong uptrend. The price is currently testing key support at $11.85. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: DRH scores 68/100 on our bottoming-setup gauge — the chart has corrected and is stabilizing (RSI reset, momentum turning up), historically a favorable entry zone. Wall Street analysts see significant upside, with an average price target of $13.71 (+12.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$12.10 -
$12.87
Company Quality Score
58/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
89.0%
All Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Strong technical setup (68/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($13.71)
- NEUTRAL: Market pricing in 1.0% annual earnings growth - fairly valued
- BULLISH: Bottoming setup score 68/100 — corrected, stabilizing, and turning up
Trading Range Analysis
30-Day Trading Range
$12.10 -
$12.87
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$11.85
Resistance Level
$12.76
Current Trend
Strong Uptrend
Technical data as of
Sep 11, 2026
Fundamental Context
Forward P/E (Next Year Est.)
20.68
Wall Street Target
$13.71
(+12.4%)
Revenue Growth (YoY)
4.1%
Earnings Growth (YoY)
144.4%
Profit Margin
13.5%
Valuation Premium vs History
+1.0% premium
PE vs Historical
20.7 vs 20.1
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+1.0%
(market-implied from PE analysis)
1-Year Target
$12.32
(+1%)
2-Year Target
$12.45
(+2%)
3-Year Target
$12.57
(+3%)
3-Yr Target (if PE normalizes)
(PE: 21→20)
PE COMPRESSION
$12.22
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.7, Growth: -24.4%)
$8.89
(+-27%)
Base:
(SPY PE: 20.2, Growth: -24.4%)
$8.68
(-29%)
Bear:
(PE: 17.1, Growth: -24.4%)
$7.37
(-40%)
📈
Valuation based on Current Earnings
Trailing PE: 16.68 | Current EPS (TTM): $0.73
Bull Case
$10.83
(-11%)
Analyst growth -19.2%, PE expands to 18.4
Base Case
$9.84
(-19%)
Market implied -19.2%, PE stable at 16.7
Bear Case
$8.28
(-32%)
Severe decline -20.0%, PE contracts to 14.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: September 11, 2026 11:33 PM ET
Data refreshes hourly during market hours. Next update: 12:33 AM
Data refreshes hourly during market hours. Next update: 12:33 AM
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Technical Signals Check
Is DRH showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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