It is Poised to be a Bull Market for Leonardo DRS Inc. (DRS)

Leonardo DRS Inc. (NASDAQ: DRS) stock jumped 0.77% on Tuesday to $13.01 against a previous-day closing price of $12.91. With 1.06 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.86 million shares. During the session, the Aerospace & Defense company that operates in wider Industrials sector, reached to the highest price of $13.22 whereas the lowest price it dropped to was $12.25. The 52-week range on DRS shows that it touched its highest point at $16.70 and its lowest point at $7.51 during that stretch. It currently has a 1-year price target of $17.00. Beta for the stock currently stands at 0.89.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DRS was up-trending over the past week, with a rise of 0.08%, but this was up by 5.77% over a month. Three-month performance surged to 28.68% while six-month performance rose 33.71%. The stock gained 35.10% in the past year, while it has gained 1.80% so far this year. A look at the trailing 12-month EPS for DRS yields 0.11 with Next year EPS estimates of 0.72. For the next quarter, that number is 0.05. This implies an EPS growth rate of 295.60% for this year and 46.90% for next year.


Float and Shares Shorts:

At present, 260.19 million DRS shares are outstanding with a float of 253.47 million shares on hand for trading.

Institutional Ownership:

Other institutions hold 6.98% of DRS, in contrast to 5.06% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in DRS with 1.35% of the stake, Excellence Investments Ltd. holds 3,518,481 shares worth 3,518,481. A second-largest stockholder of DRS, Templeton Investment Counsel LLC, holds 3,199,775 shares, controlling over 1.23% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in DRS, holding 2,742,627 shares or 1.05% stake. With a 0.61% stake in DRS, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 1,588,300 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 0.51% of DRS stock, is the second-largest Mutual Fund holder. It holds 1,314,898 shares valued at 16.8 million. Invesco Aerospace & Defense ETF holds 0.43% of the stake in DRS, owning 1,125,730 shares worth 14.39 million.


Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DRS since 3 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DRS analysts setting a high price target of $19.00 and a low target of $14.00, the average target price over the next 12 months is $16.00. Based on these targets, DRS could surge 46.04% to reach the target high and rise by 7.61% to reach the target low. Reaching the average price target will result in a growth of 22.98% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DRS will report FY 2022 earnings on 02/07/2024. Analysts have provided yearly estimates in a range of $0.70 being high and $0.59 being low. For DRS, this leads to a yearly average estimate of $0.65. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Leonardo DRS Inc. surprised analysts by -$0.01 when it reported $0.08 EPS against a consensus estimate of $0.09. The surprise factor in the prior quarter was -$0.15. Based on analyst estimates, the high estimate for the next quarter is $0.36 and the low estimate is $0.28. The average estimate for the next quarter is thus $0.32.

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