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Ducommun Incorporated (DCO) Stock Analysis

Breakout setup

SellVALUE-TRAP 2/5Moderate Confidence

Industrials · Aerospace & Defense

Sell if holding. Engine safety override at $145.36: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Below-average business quality.

Ducommun manufactures high-performance electronics and aerostructures for aerospace and defense through Electronic Systems and Structural Systems segments; A&D markets represent 96% of 2025 net revenues (58% military/space, 38% commercial aerospace). Key customers include RTX... Read more

$145.36+5.4% A.UpsideScore 4.9/10#38 of 47 Aerospace & Defense
QualityF-score6 / 9FCF yield2.63%
Stop $135.18Target $153.18(resistance)A.R:R -0.7:1
Analyst target$156.00+7.3%5 analysts
$153.18our TP
$145.36price
$156.00mean
$136
$187

Sell if holding. Engine safety override at $145.36: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 52, MACD bullish. Score 4.9/10, moderate confidence.

Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news boost analyst 0.50, earnings proximity 78d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.

Recent Developments — Ducommun Incorporated

Material events (past 30 days)

  • May 1, 2026 HIGH Item 4.02: Management concluded prior financial statements cannot be relied upon due to error in timing of stock-based compensation expense recognition for retirement-eligible employees following April 2024 award agreement changes. Error is non-cash; did not impact net revenues, gross margin, or operating cash

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
Recent Analyst detected in news
Risks
Concentration risk — Customer: top 10 customers (61.0%)
Target reached (-6.6% upside)
Quality below floor (3.5 < 4.0)

Key Metrics

P/E (TTM)
P/E (Fwd)28.0
Mkt Cap$2.2B
EV/EBITDA21.2
Profit Mgn-3.4%
ROE-4.2%
Rev Growth8.6%
Beta1.07
DividendNone
Rating analysts9

Quality Signals

Piotroski F6/9

Options Flow

P/C0.11bullish
IV45%normal

Concentration Risks(10-K Item 1A)

  • MEDIUMCustomerRTX Corporation18%
    10-K Item 1: 'with Boeing generating 13% and RTX generating 18% of our 2025 net revenues'
  • MEDIUMCustomerBoeing13%
    10-K Item 1: 'with Boeing generating 13% and RTX generating 18% of our 2025 net revenues'
  • HIGHCustomertop 10 customers61%
    10-K Item 1: 'Revenues from our top 10 customers, including Boeing and RTX, were 61% of total net revenues during 2025'

Material Events(8-K, last 90d)

  • 2026-05-01Item 4.02HIGH
    Management concluded prior financial statements cannot be relied upon due to error in timing of stock-based compensation expense recognition for retirement-eligible employees following April 2024 award agreement changes. Error is non-cash; did not impact net revenues, gross margin, or operating cash flows.
    SEC filing →
  • 2026-05-04Item 5.02LOW
    Mark A. Caylor appointed as Class II Director effective May 4, 2026, assigned to Audit Committee. Board size not specified. No arrangements or understandings cited. Standard non-employee director compensation.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
1.3
Quality Rank
2.0
Value Rank
6.7

Unprofitable operations — net margin -3.4%. Quality floor flags this regardless of sector context.static

Roe
0.0
Net Margin
0.0
Gross Margin
1.4
Roa
3.0
Operating Margin
3.0
Moat
4.4
Piotroski F
6.7
Current Ratio
9.3
No competitive moat
GatesA.R:R -0.7=NEGATIVEMomentum 6.7>=5.5Insider activity: OKNo SEC red flagsNEWS BOOST ANALYST 0.50EARNINGS PROXIMITY 78d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARBreakoutSuitability: Aggressive
RSI
52 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $131.61Resistance $156.31

Price Targets

$135
$153
A.Upside+5.4%
A.R:R-0.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-6.6% upside)
! Quality below floor (3.5 < 4.0)
! Value-trap signals (2/5): High leverage (D/E 1.9), Material insider selling (6 sells, 0.02% of cap)

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-08-06 (78d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is DCO stock a buy right now?

Sell if holding. Engine safety override at $145.36: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 52, MACD bullish. Prior stop was $135.18. Score 4.9/10, moderate confidence.

What is the DCO stock price target?

Take-profit target: $153.18 (+5.4% upside). Prior stop was $135.18. Stop-loss: $135.18.

What are the risks of investing in DCO?

Concentration risk — Customer: top 10 customers (61.0%); Target reached (-6.6% upside); Quality below floor (3.5 < 4.0).

Is DCO overvalued or undervalued?

Ducommun Incorporated trades at a P/E of N/A (forward 28.0). TrendMatrix value score: 5.4/10. Verdict: Sell.

What do analysts say about DCO?

9 analysts cover DCO with a consensus score of 4.1/5. Average price target: $156.

What does Ducommun Incorporated do?Ducommun manufactures high-performance electronics and aerostructures for aerospace and defense through Electronic...

Ducommun manufactures high-performance electronics and aerostructures for aerospace and defense through Electronic Systems and Structural Systems segments; A&D markets represent 96% of 2025 net revenues (58% military/space, 38% commercial aerospace). Key customers include RTX (18% of revenues) and Boeing (13%). Remaining performance obligations were $1.1B at December 31, 2025.

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