DRH Stock Analysis: Buy, Sell, or Hold?
DRH - DiamondRock Hospitality Company
$12.25
-0.06 (-0.49%)
▼
5d:
+2.77%
30d:
+13.85%
90d:
+33.01%
HOLD
MODERATE Confidence
Analysis Updated: Jun 22, 2026 12:00 AM ET
Earnings: Jul 30, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: DRH is fairly valued with market pricing in 3.3% annual growth. Fine to hold or accumulate slowly on dips.
📊 HOLD: DRH is fairly valued with market pricing in 3.3% annual growth. Fine to hold or accumulate slowly on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$14.19
Based on 5.0% avg growth
INTRINSIC VALUE TODAY
$8.81
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 19.5x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DRH is currently trading at $12.25, which is considered extended relative to its 30-day fair value range of $10.75 to $11.88. The stock's valuation (Forward PE: 21.4) is in line with its historical norms (19.5). At these levels, the market is pricing in 3.3% 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 approaching resistance at $11.81. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: DRH has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, DRH is in a strong uptrend. The price is approaching resistance at $11.81. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: DRH has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. 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
EXTENDED
Historical Trading Range
$10.75 -
$11.88
Company Quality Score
59/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
58.1%
All Signals
- BEARISH: Price extended above range
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($11.95)
- NEUTRAL: Market pricing in 3.3% annual earnings growth - fairly valued
Trading Range Analysis
30-Day Trading Range
$10.75 -
$11.88
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$10.83
Resistance Level
$11.81
Current Trend
Strong Uptrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
21.43
Wall Street Target
$11.95
(-2.4%)
Revenue Growth (YoY)
1.3%
Earnings Growth (YoY)
75.0%
Profit Margin
9.3%
Valuation Premium vs History
+3.3% premium
PE vs Historical
21.4 vs 19.5
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+3.3%
(market-implied from PE analysis)
1-Year Target
$12.65
(+3%)
2-Year Target
$13.07
(+7%)
3-Year Target
$13.50
(+10%)
3-Yr Target (if PE normalizes)
(PE: 21→20)
PE COMPRESSION
$12.29
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 5.9%)
$14.78
(+21%)
Base:
(SPY PE: 21.4, Growth: 5.9%)
$14.54
(+19%)
Bear:
(PE: 18.2, Growth: 5.9%)
$12.36
(+1%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (27x PE), but valuation improves significantly next year (21x PE) as earnings recover.
Trailing PE: 26.76 | Current EPS (TTM): $0.46
Bull Case
$16.83
(+37%)
Analyst growth 24.3%, PE expands to 29.4
Base Case
$15.30
(+25%)
Market implied 24.3%, PE stable at 26.8
Bear Case
$8.37
(-32%)
Severe decline -20.0%, PE contracts to 22.8
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: June 23, 2026 9:41 AM ET
Data refreshes hourly during market hours. Next update: 10:41 AM
Data refreshes hourly during market hours. Next update: 10:41 AM
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Technical Signals Check
Is DRH showing a specific setup today?
Insider Activity (6 Months)
0
Buys
1
Sells
Net
INSIDERS SELLING
Recent Transactions
Steve Spierto
SELL
4000 shares
2026-03-03
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