DRS Stock Analysis: Buy, Sell, or Hold?
DRS - Leonardo DRS, Inc. Common Stock
$46.30
0.44 (0.96%)
▲
5d:
-0.49%
30d:
-1.38%
90d:
+35.82%
BUY
MODERATE Confidence
Analysis Updated: Apr 2, 2026 12:00 AM ET
Earnings: May 07, 2026
Smart Money Accumulation
DRS is down 4.1% this week, but smart money is accumulating calls. Top strike: $47 2026-05-15 with 77 OI. Call ratio: 91% View Scanner →
Strength: 6.1/10
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: DRS shows positive signals but monitor for confirmation. Market pricing in 2.3% annual growth which appears achievable. Moderate conviction.
💡 BUY OPPORTUNITY: DRS shows positive signals but monitor for confirmation. Market pricing in 2.3% annual growth which appears achievable. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$51.85
Based on 8.1% avg growth
INTRINSIC VALUE TODAY
$32.20
Trading above fair value
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 $46.30, which is considered fair relative to its 30-day fair value range of $42.74 to $46.77. The stock's valuation (Forward PE: 32.9) is in line with its historical norms (30.8). At these levels, the market is pricing in 2.3% 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 strong uptrend. The price is approaching resistance at $46.94. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: The stock shows a mixed technical setup (55/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $51.40 (+11.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DRS is in a strong uptrend. The price is approaching resistance at $46.94. A breakout above this level would be a bullish signal, while rejection here could lead to consolidation.
Market Sentiment: The stock shows a mixed technical setup (55/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $51.40 (+11.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Fair Price Range
$42.74 -
$46.77
Company Quality Score
54/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
71.0%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (55/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($51.40)
- NEUTRAL: Market pricing in 2.3% annual earnings growth - fairly valued
Fair Price Analysis
30-Day Fair Range
$42.74 -
$46.77
Current vs Fair Value
FAIR
Support & Resistance Levels
Support Level
$42.77
Resistance Level
$46.94
Current Trend
Strong Uptrend
Technical data as of
Apr 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
32.89
Wall Street Target
$51.40
(+11.0%)
Revenue Growth (YoY)
8.1%
Earnings Growth (YoY)
12.2%
Profit Margin
7.6%
Valuation Premium vs History
+2.3% premium
PE vs Historical
32.9 vs 30.8
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+2.3%
(market-implied from PE analysis)
1-Year Target
$47.36
(+2%)
2-Year Target
$48.45
(+5%)
3-Year Target
$49.57
(+7%)
3-Yr Target (if PE normalizes)
(PE: 33→31)
PE COMPRESSION
$46.41
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 32.9, Growth: 12.2%)
$65.40
(+41%)
Base:
(SPY PE: 20.6, Growth: 12.2%)
$40.90
(-12%)
Bear:
(PE: 17.5, Growth: 12.2%)
$34.77
(-25%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (43x PE), but valuation improves significantly next year (33x PE) as earnings recover.
Trailing PE: 42.54 | Current EPS (TTM): $1.03
Bull Case
$65.62
(+48%)
Analyst growth 36.1%, PE expands to 46.8
Base Case
$59.66
(+34%)
Market implied 36.1%, PE stable at 42.5
Bear Case
$29.80
(-33%)
Severe decline -20.0%, PE contracts to 36.2
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: April 02, 2026 8:34 PM ET
Data refreshes hourly during market hours. Next update: 9:34 PM
Data refreshes hourly during market hours. Next update: 9:34 PM
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Technical Signals Check
Is DRS showing a specific setup today?
Insider Activity (6 Months)
0
Buys
5
Sells
Net
INSIDERS SELLING
Recent Transactions
Michael Dippold
SELL
16330 shares
2026-03-16
Pamela Morrow
SELL
12000 shares
2026-03-03
Michael Dippold
SELL
10588 shares
2026-01-05
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