Leonardo DRS, Inc. (DRS) Stock Analysis
Industrials · Aerospace & Defense
Sell if holding. Momentum 1.2/10 is below the 5.0 floor at $40.21 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: U.S. government (80.0%); Earnings in 4 days (event risk).
Leonardo DRS provides advanced defense technology across Advanced Sensing and Computing (ASC) and Integrated Mission Systems (IMS) segments to the U.S. military and allied defense forces worldwide. Approximately 80% of revenues come from U.S. government contracts, with the U.S.... Read more
Sell if holding. Momentum 1.2/10 is below the 5.0 floor at $40.21 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: U.S. government (80.0%); Earnings in 4 days (event risk). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 4.8/10, moderate confidence.
Passes 5/7 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on weak momentum and earnings proximity 4d<=7d. Suitability: moderate.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerU.S. government80%10-K Item 1A: 'Revenues derived directly or indirectly from contracts with the U.S. government represented approximately 80%...of our total revenues for the years ended December 31, 2025'
- MEDIUMCustomerU.S. Navy and U.S. Army10-K Item 1A: 'revenues principally derived directly or indirectly from contracts with the U.S. Navy and U.S. Army, which represented 36% and 36%, respectively, of our total revenues'
Material Events(8-K, last 90d)
- 2026-03-10Item 5.02LOWProxy holder director David W. Carey retiring from Leonardo DRS Board effective March 31, 2026. Reuben Jeffery III approved by DCSA as replacement proxy holder director for term beginning April 1, 2026. No disagreement cited.SEC filing →
- 2026-01-28Item 1.02MEDIUMLeonardo DRS terminated its prior revolving credit facility on January 28, 2026, replacing it with a new five-year $500M unsecured revolving credit facility with JPMorgan Chase Bank as Administrative Agent.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
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Momentum 1.2/10 is below the 5.0 floor at $40.21 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Customer: U.S. government (80.0%); Earnings in 4 days (event risk). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $38.10. Score 4.8/10, moderate confidence.
Take-profit target: $45.24 (+12.3% upside). Prior stop was $38.10. Stop-loss: $38.10.
Concentration risk — Customer: U.S. government (80.0%); Earnings in 4 days (event risk); Weak overall score: 4.8/10.
Leonardo DRS, Inc. trades at a P/E of 38.3 (forward 28.0). TrendMatrix value score: 4.5/10. Verdict: Sell.
15 analysts cover DRS with a consensus score of 4.1/5. Average price target: $52.
What does Leonardo DRS, Inc. do?Leonardo DRS provides advanced defense technology across Advanced Sensing and Computing (ASC) and Integrated Mission...
Leonardo DRS provides advanced defense technology across Advanced Sensing and Computing (ASC) and Integrated Mission Systems (IMS) segments to the U.S. military and allied defense forces worldwide. Approximately 80% of revenues come from U.S. government contracts, with the U.S. Navy and U.S. Army each representing 36% of total 2025 revenues. The company is approximately 71% voting-controlled by Leonardo S.p.A. of Italy.