DRS Stock Analysis: Buy, Sell, or Hold?
DRS - Leonardo DRS, Inc. Common Stock
$40.70
-0.30 (-0.73%)
▼
5d:
-10.61%
30d:
-15.49%
90d:
-8.64%
WAIT
LOW Confidence
Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Jul 30, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
⏸️ WAIT FOR STABILIZATION: DRS is down 10.6% over the last 5 days. While fundamentals may be solid, catching a falling knife is risky. Wait for price to stabilize before entering.
⏸️ WAIT FOR STABILIZATION: DRS is down 10.6% over the last 5 days. While fundamentals may be solid, catching a falling knife is risky. Wait for price to stabilize before entering.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$46.57
Based on 4.9% avg growth
INTRINSIC VALUE TODAY
$28.92
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 $40.70, which is considered oversold relative to its 30-day fair value range of $43.25 to $47.11. From a valuation perspective, the stock is trading at a discount (Forward PE: 27.7) compared to its historical average (30.9). Remarkably, the market is currently pricing in an annual earnings decline of 3.7% over the next few years. This pessimistic expectation contrasts with the company's recent 60.0% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, DRS is showing support break momentum. The price is currently testing key support at $40.28. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: DRS scores 33/100 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 $54.10 (+32.9%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, DRS is showing support break momentum. The price is currently testing key support at $40.28. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: DRS scores 33/100 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 $54.10 (+32.9%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$43.25 -
$47.11
Company Quality Score
45/100
(HOLD)
Options IV Signal
35th percentile
(NORMAL)
Volume Confirmation
HIGH
Confidence Score
59.6%
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
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Options fairly priced (IV 35th percentile)
- BEARISH: Weak technical setup (33/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 32.9% below Wall St target ($54.10)
- WARNING: Composite score 45/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$43.25 -
$47.11
Current vs Trading Range
OVERSOLD
Expected Move (7 Days)
±$2.25
(5.5%)
Support & Resistance Levels
Support Level
$40.28
Resistance Level
$45.95
Current Trend
Support Break
Technical data as of
Aug 21, 2026
Fundamental Context
Forward P/E (Next Year Est.)
27.68
Wall Street Target
$54.10
(+32.9%)
Revenue Growth (YoY)
10.1%
Earnings Growth (YoY)
60.0%
Profit Margin
8.5%
Valuation Discount vs History
-3.7% cheaper
PE vs Historical
27.7 vs 30.9
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-3.7%
(market-implied from PE analysis)
1-Year Target
$39.19
(-4%)
2-Year Target
$37.74
(-7%)
3-Year Target
$36.35
(-11%)
3-Yr Target (if PE normalizes)
(PE: 28→31)
$40.57
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 27.7, Growth: 5.7%)
$48.12
(+18%)
Base:
(SPY PE: 20.1, Growth: 5.7%)
$34.88
(-14%)
Bear:
(PE: 17.1, Growth: 5.7%)
$29.65
(-27%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (34x PE), but valuation improves significantly next year (28x PE) as earnings recover.
Trailing PE: 34.45 | Current EPS (TTM): $1.19
Bull Case
$55.72
(+37%)
Analyst growth 23.5%, PE expands to 37.9
Base Case
$50.65
(+25%)
Market implied 23.5%, PE stable at 34.5
Bear Case
$27.88
(-32%)
Severe decline -20.0%, PE contracts to 29.3
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 27.7 to 30.9
Stabilization Target:
$45.43
(+11.6%)
PE Expansion Potential:
+11.6%
Share & Embed Analysis
Last updated: August 24, 2026 1:48 AM ET
Data refreshes hourly during market hours. Next update: 2:48 AM
Data refreshes hourly during market hours. Next update: 2:48 AM
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Technical Signals Check
Is DRS showing a specific setup today?
Insider Activity (6 Months)
0
Buys
4
Sells
Net
INSIDERS SELLING
Recent Transactions
Michael Dippold
SELL
7071 shares
2026-04-02
Sally Wallace
SELL
28960 shares
2026-04-02
Michael Dippold
SELL
16330 shares
2026-03-16
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Advanced DRS Option Strategies
Professional options setups generated by AI based on today's DRS price and gamma walls.
