Leonardo DRS, Inc. (DRS) Stock Analysis
Industrials · Aerospace & Defense
Sell if holding. At $44.00, A.R:R 0.7:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: U.S. government (80.0%); Concentration risk — Supplier: sole-source component suppliers.
Leonardo DRS provides advanced defense technology to the U.S. military and allied forces through two segments: Advanced Sensing and Computing (sensors, EW, computing) and Integrated Mission Systems (naval propulsion, force protection). 80% of 2025 revenues came from U.S.... Read more
Sell if holding. At $44.00, A.R:R 0.7:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: U.S. government (80.0%); Concentration risk — Supplier: sole-source component suppliers. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.1/10, high confidence.
Passes 7/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 69d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent Developments — Leonardo DRS, Inc.
Latest news
- Why Leonardo DRS stock trounced the market today - MSN — MSN positive
- Drs Lee and Saxena on Future Directions for PD-L1 Evaluation in EGFR-Mutated NSCLC - OncLive — OncLive neutral
- Fund Update: 1,098,108 LEONARDO DRS (DRS) shares added to Stephens Investment Management Group LLC portfolio - Quiver Qu — Quiver Quantitative positive
- Leonardo DRS (DRS) Projected to Post Earnings on Tuesday - MarketBeat — MarketBeat neutral
- Is Leonardo DRS a Good Stock to Buy? - HarianBasis.co — HarianBasis.co neutral
Generated 2026-05-20T21:06:21Z.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomerU.S. government80%10-K Item 1: 'Revenues derived directly, as a prime contractor, or indirectly, as a subcontractor, from contracts with the U.S. government represented 80%, 79% and 80% of our total revenues for 2025, 2024, and 2023, respectively'
- MEDIUMCustomerU.S. Navy36%10-K Item 1: '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 for the year ended December 31, 2025'
- MEDIUMCustomerU.S. Army36%10-K Item 1: '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 for the year ended December 31, 2025'
- HIGHSuppliersole-source component suppliers10-K Item 1: 'several suppliers serve as the sole source of certain components. If a supplier should cease to deliver such components, generally, but not in all cases, we would expect that other sources would be available'
Material Events(8-K, last 90d)
- 2026-03-10Item 5.02LOWDavid W. Carey (proxy holder director) retiring March 31, 2026 after 17 years; no disagreement cited. Reuben Jeffery III approved by DCSA and appointed as replacement proxy holder director effective April 1, 2026.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
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $44.00, A.R:R 0.7:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: U.S. government (80.0%); Concentration risk — Supplier: sole-source component suppliers. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $40.03. Score 5.1/10, high confidence.
Take-profit target: $46.02 (+7.5% upside). Prior stop was $40.03. Stop-loss: $40.03.
Concentration risk — Customer: U.S. government (80.0%); Concentration risk — Supplier: sole-source component suppliers; Thin upside margin: 7.5%.
Leonardo DRS, Inc. trades at a P/E of 40.0 (forward 29.7). TrendMatrix value score: 4.6/10. Verdict: Sell.
15 analysts cover DRS with a consensus score of 4.1/5. Average price target: $53.
What does Leonardo DRS, Inc. do?Leonardo DRS provides advanced defense technology to the U.S. military and allied forces through two segments: Advanced...
Leonardo DRS provides advanced defense technology to the U.S. military and allied forces through two segments: Advanced Sensing and Computing (sensors, EW, computing) and Integrated Mission Systems (naval propulsion, force protection). 80% of 2025 revenues came from U.S. government contracts, with the Navy and Army each representing 36% of total revenues.