DRH Stock Analysis: Buy, Sell, or Hold?
DRH - DiamondRock Hospitality Company
$9.41
0.05 (0.53%)
▲
5d:
-1.88%
30d:
-5.99%
90d:
+5.02%
HOLD
MODERATE Confidence
Analysis Updated: Apr 2, 2026 12:00 AM ET
Earnings: Apr 30, 2026
26d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: DRH shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: DRH shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$18.83
Based on 12.2% avg growth
INTRINSIC VALUE TODAY
$11.69
19.5% Margin of Safety
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 19.7x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DRH is currently trading at $9.41, which is considered slightly low relative to its 30-day fair value range of $9.33 to $9.91. From a valuation perspective, the stock is trading at a discount (Forward PE: 17.4) compared to its historical average (19.7). Remarkably, the market is currently pricing in an annual earnings decline of 4.1% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, DRH is in a uptrend. The price is currently testing key support at $9.19. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: DRH has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $10.60 (+12.6%). 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 currently testing key support at $9.19. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: DRH has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. Wall Street analysts see significant upside, with an average price target of $10.60 (+12.6%). 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 LOW
Fair Price Range
$9.33 -
$9.91
Company Quality Score
56/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
54.8%
All Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (25/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($10.60)
Fair Price Analysis
30-Day Fair Range
$9.33 -
$9.91
Current vs Fair Value
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$9.19
Resistance Level
$9.78
Current Trend
Uptrend
Technical data as of
Apr 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
17.39
Wall Street Target
$10.60
(+12.6%)
Revenue Growth (YoY)
-1.6%
Earnings Growth (YoY)
-11.2%
Profit Margin
9.0%
Valuation Discount vs History
-4.1% cheaper
PE vs Historical
17.4 vs 19.7
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-4.1%
(market-implied from PE analysis)
1-Year Target
$9.02
(-4%)
2-Year Target
$8.65
(-8%)
3-Year Target
$8.30
(-12%)
3-Yr Target (if PE normalizes)
(PE: 17→20)
$9.40
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.6, Growth: 20.4%)
$11.20
(+19%)
Base:
(SPY PE: 17.4, Growth: 20.4%)
$9.47
(+1%)
Bear:
(PE: 14.8, Growth: 20.4%)
$8.05
(-15%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (21x PE), but valuation improves significantly next year (17x PE) as earnings recover.
Trailing PE: 20.93 | Current EPS (TTM): $0.44
Bull Case
$12.35
(+31%)
Analyst growth 21.9%, PE expands to 23.0
Base Case
$11.23
(+19%)
Market implied 21.9%, PE stable at 20.9
Bear Case
$6.26
(-34%)
Severe decline -20.0%, PE contracts to 17.8
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 17.4 to 19.7
Stabilization Target:
$10.66
(+13.3%)
PE Expansion Potential:
+13.3%
Share & Embed Analysis
Last updated: April 02, 2026 7:04 PM ET
Data refreshes hourly during market hours. Next update: 8:04 PM
Data refreshes hourly during market hours. Next update: 8:04 PM
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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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