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DRS

Leonardo DRSC
Nasdaq / Capital Goods
Last Price
Quote time unavailable
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Current thesis
Q2 revenue grew 10% year over year, bookings exceeded revenue, and the company raised adjusted EBITDA and adjusted EPS guidance while leaving revenue guidance unchanged. Backlog conversion and durable margins could support a rerating.
Posture
Mixed
Lead driver
Value
What changed
Next scheduled catalyst: earnings 2026-10-29 · BMO.
What can break
Backlog conversion delays, unfavorable program mix or execution setbacks after Q2 margin expansion.
Momentum
32
Value
53
Sentiment
51
Setup hits (3d)
0 · Net Neutral
AI TargetsBase $34.00 · Bull $42.00 · Bear $26.00Analysis 2026-10-21; returns require an exact persisted reference.
Earnings
2026-10-29 · BMO
Data freshness
Prices
Unavailable: Price unavailable
Fundamentals
As of 2026-10-23 • Vendor: Data Vendor v1
Scores
As of 2026-10-23 • Model: HYBRID_IC_RP
AI Memo
As of 2026-10-21 • Model: RankAlpha Sentiment Codex
Investment thesis
As of 2026-10-23

Grade is the composite factor band; factor scores use a 0–100 scale. Confidence describes evidence quality, not a probability of return. Score date: 2026-10-23. Definitions

Supporting evidence
What
Grade C · Mixed
Confidence Medium · Net Neutral
Target $53.18
Why
Momentum32 · Δ7d -12.5
Value53 · Δ7d +0.2
Sentiment51 · Δ7d -26.4
So what
Balanced signals (Net Neutral). Wait for confirmation before sizing up.

Confirming evidence

  • • Next scheduled catalyst: earnings 2026-10-29 · BMO.
  • • Value remains the lead driver in the composite, 7D delta +0.2.

Contradictions & invalidation

  • • Backlog conversion delays, unfavorable program mix or execution setbacks after Q2 margin expansion.
  • • Failure to reaffirm raised 2026 adjusted EBITDA or adjusted EPS guidance on October 29.
  • • The next report must validate the raised profit outlook.

Catalyst clock

2026-10-29 · BMO

October 29 third-quarter results and guidance

Lead driver: Value · See fundamentals
Momentum
32
8% active weight
Current posture
7d trendSoftening
Δ7d
-12.5
Δ21d
-0.3
Value
53
47% active weight
Current posture
7d trendFlat
Δ7d
+0.2
Δ21d
+0.3
Sentiment
51
45% active weight
Current posture
7d trendSoftening
Δ7d
-26.4
Δ21d
-30.2
Why this grade

Composite grade C. Momentum 32.2 / Value 53.2 / Sentiment 51.3

Scenario snapshot

Scenario probability is memo-authored likelihood, not forecast certainty. Targets belong to the analysis dated 2026-10-21. Scenario method

B+
Bull case
25%
Probability
Target price
$42.00
Analysis reference price unavailable
Analysis 2026-10-21 · RankAlpha Sentiment Codex
Most likely
B
Base case
40%
Probability
Target price
$34.00
Analysis reference price unavailable
Analysis 2026-10-21 · RankAlpha Sentiment Codex
B-
Bear case
35%
Probability
Target price
$26.00
Analysis reference price unavailable
Analysis 2026-10-21 · RankAlpha Sentiment Codex
Fundamentals (TTM)
As of 2026-10-23
Market Cap
$9.21B
Beta
0.45
Shares Out
266.89M
P/E (TTM)
37.6
P/S (TTM)
2.76
P/FCF (TTM)
51.01
Rev YoY
+10.1%
EPS YoY
+59.3%
Gross Margin
+24.3%
Op Margin
+10.6%
Net Debt
-$177M
Current Ratio
1.92
As of 2026-10-23 • Updated nightlySource: Internal modelMethods & Data