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NASDAQ:DRS
This summary was created by AI, based on 3 opinions in the last 12 months.
Leonardo DRS (DRS-Q) has garnered attention from experts due to its strong positioning in the defense sector amidst rising global defense budgets. The company reported impressive revenue growth of 16% year-over-year, benefiting from increased demand for propulsion systems and tactical radars. With significant exposure to rare earths, which are currently experiencing a price surge, DRS is well-placed to navigate challenges such as tariffs, thanks to its solid supply chain located primarily in the U.S. Additionally, the company has diversified its revenue streams, with 20% coming from international markets including Canada, South Korea, and Israel. Despite a recent share price increase that reflects a 37x P/E ratio, experts recommend buying only during a significant pullback, signaling caution even as the company introduces a small dividend and engages in share buybacks to return value to shareholders.
Last May, they delivered a large revenue beat with 16% growth YOY. Both of their segments did well, driven by growth in propulsion systems and tactical radars. They have exposure to rare earths which have risen in price on the market. They're confident they can navigate tariffs due to their main footprint and supply chain in the US. Also, 20% of business comes from Canada, South Korea and Israel. The numbers are good. Up 46% this year. DRS feel that can benefit from defense spending. They launched a dividend this year, albeit small, but shows confidence, and started a modes share buyback this year. Share have run up, now at 37x PE. Would buy only in a serious pullback.
They do military applications, like propulsion systems for the navy, radar and detection systems. 80% of business comes from the US Army, but the pressure for NATO countries to build their own defenses will be a tailwind. The US Navy has a huge submarine project that will benefit DRS. DRS has an $8.5 billion backlog.
(Analysts’ price target is $43.00)Leonardo DRS is a American stock, trading under the symbol DRS (previously DRS-Q on Stockchase) on the NASDAQ (DRS). It is usually referred to as NASDAQ:DRS or DRS
In the last year, 3 stock analysts issued a Buy, Sell, or Hold rating on DRS (previously DRS-Q on Stockchase). 3 analysts recommended to BUY and 0 analysts recommended to SELL the stock. The latest stock analyst rating is TOP PICK. Read the latest stock experts' ratings for Leonardo DRS.
Leonardo DRS was recommended as a Top Pick by Gordon Reid on 2025-05-13. Read the latest stock experts ratings for Leonardo DRS.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for Leonardo DRS.
Leonardo DRS is covered by Stockchase experts and is worth watching.
On 2026-06-12, Leonardo DRS (DRS) stock closed at a price of $48.53.
Defense contractor and products. Defense budgets around the world are rising. Pressure on NATO to increase military spending.