DiamondRock Hospitality (DRH) Stock: Buy, Sell, or Hold?
DRH - DiamondRock Hospitality Company
$12.51
0.15 (1.21%)
▲
5d:
+0.72%
30d:
+4.25%
90d:
+3.56%
HOLD
MODERATE Confidence
Analysis Updated: Oct 1, 2026 12:00 AM ET
Earnings: Nov 03, 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 1.8% annual growth. Fine to hold or accumulate slowly on dips.
📊 HOLD: DRH is fairly valued with market pricing in 1.8% 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
$6.75
Based on -10.1% avg growth
INTRINSIC VALUE TODAY
$4.19
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 $12.51, which is considered slightly high relative to its 30-day fair value range of $12.12 to $12.59. The stock's valuation (Forward PE: 21.2) is in line with its historical norms (20.1). At these levels, the market is pricing in 1.8% 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 uptrend. The price is approaching resistance at $12.70. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: The stock scores a mixed 47/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $13.96 (+11.6%). 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 uptrend. The price is approaching resistance at $12.70. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: The stock scores a mixed 47/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. Wall Street analysts see significant upside, with an average price target of $13.96 (+11.6%). 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
SLIGHTLY HIGH
Historical Trading Range
$12.12 -
$12.59
Company Quality Score
55/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
63.8%
All Signals
- NEUTRAL: Mixed technical signals (47/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($13.96)
- NEUTRAL: Market pricing in 1.8% annual earnings growth - fairly valued
- NEUTRAL: Bottoming setup forming (47/100) — watch for confirmation
Trading Range Analysis
30-Day Trading Range
$12.12 -
$12.59
Current vs Trading Range
SLIGHTLY HIGH
Support & Resistance Levels
Support Level
$12.10
Resistance Level
$12.70
Current Trend
Uptrend
Technical data as of
Oct 1, 2026
Fundamental Context
Forward P/E (Next Year Est.)
21.20
Wall Street Target
$13.96
(+11.6%)
Revenue Growth (YoY)
4.1%
Earnings Growth (YoY)
144.4%
Profit Margin
13.5%
Valuation Premium vs History
+1.8% premium
PE vs Historical
21.2 vs 20.1
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+1.8%
(market-implied from PE analysis)
1-Year Target
$12.74
(+2%)
2-Year Target
$12.96
(+4%)
3-Year Target
$13.20
(+6%)
3-Yr Target (if PE normalizes)
(PE: 21→20)
PE COMPRESSION
$12.51
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.2, Growth: -24.2%)
$9.12
(+-27%)
Base:
(SPY PE: 20.4, Growth: -24.2%)
$8.77
(-30%)
Bear:
(PE: 17.3, Growth: -24.2%)
$7.46
(-40%)
📈
Valuation based on Current Earnings
Trailing PE: 17.41 | Current EPS (TTM): $0.71
Bull Case
$11.30
(-10%)
Analyst growth -16.9%, PE expands to 19.2
Base Case
$10.27
(-18%)
Market implied -16.9%, PE stable at 17.4
Bear Case
$8.40
(-33%)
Severe decline -20.0%, PE contracts to 14.8
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: October 02, 2026 5:37 AM ET
Data refreshes hourly during market hours. Next update: 6:37 AM
Data refreshes hourly during market hours. Next update: 6:37 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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