DRS Stock Analysis: Buy, Sell, or Hold?
DRS - Leonardo DRS, Inc. Common Stock
$41.06
-0.24 (-0.58%)
▼
HOLD
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Feb 24, 2026
22d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: DRS is fairly valued with market pricing in 3.5% annual growth. Fine to hold or accumulate slowly on dips.
📊 HOLD: DRS is fairly valued with market pricing in 3.5% 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
$49.18
Based on 9.5% avg growth
INTRINSIC VALUE TODAY
$30.54
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 $41.06, which is considered extended relative to its 30-day fair value range of $34.97 to $41.61. From a valuation perspective, the stock is trading at a premium (Forward PE: 32.7) compared to its historical average (29.5). At these levels, the market is pricing in 3.5% 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 downtrend. The price is currently testing key support at $40.10. A bounce from this level would confirm strength, while a break below could signal further downside.
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 $48.10 (+17.1%). 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 downtrend. The price is currently testing key support at $40.10. A bounce from this level would confirm strength, while a break below could signal further downside.
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 $48.10 (+17.1%). 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
Fair Price Range
$34.97 -
$41.61
Company Quality Score
64/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
49.5%
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
- NEUTRAL: Mixed technical signals (55/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($48.10)
- NEUTRAL: Market pricing in 3.5% annual earnings growth - fairly valued
Fair Price Analysis
30-Day Fair Range
$34.97 -
$41.61
Current vs Fair Value
EXTENDED
Support & Resistance Levels
Support Level
$40.10
Resistance Level
$43.25
Current Trend
Downtrend
Fundamental Context
Forward P/E (Next Year Est.)
32.68
Wall Street Target
$48.10
(+17.1%)
Revenue Growth (YoY)
18.2%
Earnings Growth (YoY)
23.8%
Profit Margin
7.4%
Valuation Premium vs History
+3.5% premium
PE vs Historical
32.7 vs 29.5
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+3.5%
(market-implied from PE analysis)
1-Year Target
$42.50
(+4%)
2-Year Target
$43.98
(+7%)
3-Year Target
$45.52
(+11%)
3-Yr Target (if PE normalizes)
(PE: 33→30)
PE COMPRESSION
$41.09
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 32.7, Growth: 14.9%)
$62.33
(+52%)
Base:
(SPY PE: 22.3, Growth: 14.9%)
$42.53
(+4%)
Bear:
(PE: 19.0, Growth: 14.9%)
$36.15
(-12%)
📈
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: 42.90 | Current EPS (TTM): $0.99
Bull Case
$59.28
(+44%)
Analyst growth 26.9%, PE expands to 47.2
Base Case
$53.89
(+31%)
Market implied 26.9%, PE stable at 42.9
Bear Case
$28.88
(-30%)
Severe decline -20.0%, PE contracts to 36.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: February 01, 2026 5:17 PM ET
Data refreshes hourly during market hours. Next update: 6:17 PM
Data refreshes hourly during market hours. Next update: 6:17 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
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