DRS Stock Analysis: Buy, Sell, or Hold?
DRS - Leonardo DRS, Inc. Common Stock
$45.61
-1.78 (-3.76%)
▼
5d:
+0.57%
30d:
+14.02%
90d:
-2.85%
HOLD
MODERATE Confidence
Analysis Updated: Jun 3, 2026 12:00 AM ET
Earnings: May 05, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: DRS is fairly valued with market pricing in 1.0% annual growth. Fine to hold or accumulate slowly on dips.
📊 HOLD: DRS is fairly valued with market pricing in 1.0% 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
$51.24
Based on 7.4% avg growth
INTRINSIC VALUE TODAY
$31.81
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 25.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DRS is currently trading at $45.61, which is considered extended relative to its 30-day fair value range of $40.26 to $44.50. The stock's valuation (Forward PE: 31.7) is in line with its historical norms (30.8). 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, DRS is in a uptrend. Immediate support is located at $43.03, while resistance sits at $48.95. Short-term momentum is weak, with the stock down 3.8% recently.
Market Sentiment: DRS has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $52.90 (+16.0%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, DRS is in a uptrend. Immediate support is located at $43.03, while resistance sits at $48.95. Short-term momentum is weak, with the stock down 3.8% recently.
Market Sentiment: DRS has a strong technical setup (75/100), with favorable trendlines, momentum, and price action for short-term traders. Wall Street analysts see significant upside, with an average price target of $52.90 (+16.0%). 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
$40.26 -
$44.50
Company Quality Score
58/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
55.7%
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: Price extended above range
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-3.8%)
- BULLISH: Trading below Wall St target ($52.90)
- NEUTRAL: Market pricing in 1.0% annual earnings growth - fairly valued
Trading Range Analysis
30-Day Trading Range
$40.26 -
$44.50
Current vs Trading Range
EXTENDED
Support & Resistance Levels
Support Level
$43.03
Resistance Level
$48.95
Current Trend
Uptrend
Technical data as of
Jun 3, 2026
Fundamental Context
Forward P/E (Next Year Est.)
31.69
Wall Street Target
$52.90
(+16.0%)
Revenue Growth (YoY)
5.9%
Earnings Growth (YoY)
22.0%
Profit Margin
7.8%
Valuation Premium vs History
+1.0% premium
PE vs Historical
31.7 vs 30.8
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+1.0%
(market-implied from PE analysis)
1-Year Target
$46.07
(+1%)
2-Year Target
$46.53
(+2%)
3-Year Target
$46.99
(+3%)
3-Yr Target (if PE normalizes)
(PE: 32→31)
PE COMPRESSION
$45.67
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 31.7, Growth: 10.7%)
$61.88
(+36%)
Base:
(SPY PE: 21.9, Growth: 10.7%)
$42.79
(-6%)
Bear:
(PE: 18.6, Growth: 10.7%)
$36.37
(-20%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (43x PE), but valuation improves significantly next year (32x PE) as earnings recover.
Trailing PE: 42.78 | Current EPS (TTM): $1.06
Bull Case
$67.74
(+40%)
Analyst growth 35.8%, PE expands to 47.1
Base Case
$61.58
(+27%)
Market implied 35.8%, PE stable at 42.8
Bear Case
$30.84
(-36%)
Severe decline -20.0%, PE contracts to 36.4
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: June 03, 2026 5:36 PM ET
Data refreshes hourly during market hours. Next update: 6:36 PM
Data refreshes hourly during market hours. Next update: 6:36 PM
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Technical Signals Check
Is DRS showing a specific setup today?
Insider Activity (6 Months)
1
Buys
6
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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