Leonardo vs. Rheinmetall: Defense Stock Performance Comparison
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 09 2026
0mins
Should l Buy DRS?
Source: Fool
- Defense Industry Growth: In 2025, the global defense sector thrived with the S&P Global Aerospace & Defense Select Industry Index surging 51.5%, reflecting countries' urgent need to enhance military capabilities, particularly as U.S. military spending approaches $1 trillion, driving strong stock performance.
- Leonardo's Performance: Leonardo saw a nearly 24% increase over the past year and a five-year return of approximately 303%, with a stable 5% compound annual revenue growth rate and 14% earnings per share growth, underscoring its robust position in the U.S. defense market.
- Rheinmetall's Rise: Rheinmetall achieved a remarkable 232% return in the past year and about 1,880% over five years, fueled by the German government's commitment to invest €650 billion over the next five years to meet NATO's 3.5% GDP defense spending target, rapidly elevating it to the fourth-largest defense spender globally.
- Future Outlook: Rheinmetall projects a 30% compound annual growth rate in sales and a 45% compound annual growth rate in backlog, alongside a 270 basis point increase in operating margin since 2023, indicating strong growth potential in the defense sector.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DRS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on DRS
Wall Street analysts forecast DRS stock price to rise
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 45.300
Low
40.00
Averages
47.33
High
54.00
Current: 45.300
Low
40.00
Averages
47.33
High
54.00
About DRS
Leonardo DRS, Inc. is a provider of advanced defense technology to the United States national security customers and allies around the world. It specializes in the design, development and manufacture of advanced sensing, network computing, force protection, and electric power and propulsion, and other mission-critical technologies. It is a provider of defense products and technologies that are used across land, air, sea, space, and cyber domains. Its segments include Advanced Sensing and Computing (ASC) and Integrated Mission Systems (IMS). The ASC segment designs, develops, and manufactures sensing and network computing technology that enables real-time situational awareness required for operational decision making and execution by its customers. The IMS segment designs, develops, manufactures, and integrates power conversion, control and distribution systems, ship propulsion systems, motors and variable frequency drives, force protection systems, transportation and logistics systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Could the U.S. Deplete Its Missile Supply? Lockheed Martin and Other Stocks Working to Avert This.
- Ongoing Conflict: The U.S. and Iran are currently engaged in a conflict characterized by numerous missile launches and interceptions.
- Defense Stocks Impact: Companies like Lockheed Martin, RTX, and Boeing are expected to see potential benefits from the increased military activity.
See More
Concerns Grow Over U.S. Missile Shortages in Iran, Prompting Reliance on Contractors.
- Missile Activity: A significant number of missiles are being launched in the ongoing conflict between the U.S. and Iran.
- Intercepted Missiles: Many of these missiles are also being intercepted during the conflict.
See More
Three Key Sectors to Monitor While the S&P 500 Moves Sideways
Geopolitical Concerns: Ongoing geopolitical issues, including tensions related to Iran and international trade, are impacting market sentiment.
Tech Sector Pressures: The tech sector is facing challenges, particularly due to concerns surrounding artificial intelligence.
Investor Behavior: Instead of withdrawing from equities, investors are shifting their focus within the market.
Market Opportunities: This rotation in investment strategy is creating new pockets of opportunity for investors.
See More
U.S. Military Action Against Iran Escalates, Defense Stocks Hit Record Highs
- Defense Stocks Surge: Aerospace and defense stocks soared to record levels on Monday as escalating U.S. rhetoric towards Iran shifted market expectations towards a sustained military campaign, with the SPDR S&P Aerospace & Defense ETF (NYSE:XAR) climbing 3.6% in mid-morning trading.
- Trump's Warning: In a CNN interview, Trump hinted that the most intense phase of military action is yet to come, stating, 'We haven't even started hitting them hard,' which has heightened market concerns about future military conflicts.
- Pentagon's Statement: Defense Secretary and Joint Chiefs emphasized that the military campaign is 'not a single overnight operation,' indicating that achieving military objectives will take time and suggesting that additional forces may be deployed to the region.
- Market Demand Expectations: With over 100 aircraft involved in initial strikes, markets are pricing in sustained demand for advanced weapon systems, air defense, and surveillance technologies, reflecting an optimistic sentiment towards the defense sector.
See More
Astrana Health Reports Strong Quarterly Earnings, Shares Surge
- Earnings Beat: Astrana Health Inc. reported quarterly earnings of 54 cents per share, significantly surpassing the analyst consensus estimate of 11 cents, indicating a strong improvement in profitability and boosting market confidence in future growth.
- Sales Growth: The company achieved quarterly sales of $950.526 million, exceeding the analyst consensus estimate of $930.451 million, demonstrating robust demand for its products and competitive positioning, which may drive future investments and expansion.
- Stock Surge: Astrana Health's shares jumped 29.5% to $26.32 during Monday's session, reflecting a positive investor reaction to the strong earnings report, potentially attracting more institutional investors' interest.
- Market Context: While U.S. stocks were generally lower, with the Dow Jones index falling over 150 points, Astrana Health's strong performance highlights the resilience of individual stocks in uncertain market conditions, possibly providing new investment opportunities for investors.
See More
ITALY'S LEONARDO CEO: UK GOVERNMENT TO ANNOUNCE JUMBO HELICOPTER ORDER IN THE NEXT DAY OR TWO
Italy's Leonardo CEO Announcement: The CEO of Italy's Leonardo has indicated that news regarding a significant order for Jumbos helicopters from the UK government is expected soon.
Upcoming Order Details: The announcement is anticipated within the next one or two days, highlighting the importance of this potential contract for Leonardo.
See More
Could the U.S. Deplete Its Missile Supply? Lockheed Martin and Other Stocks Working to Avert This.
- Ongoing Conflict: The U.S. and Iran are currently engaged in a conflict characterized by numerous missile launches and interceptions.
- Defense Stocks Impact: Companies like Lockheed Martin, RTX, and Boeing are expected to see potential benefits from the increased military activity.
See More
Concerns Grow Over U.S. Missile Shortages in Iran, Prompting Reliance on Contractors.
- Missile Activity: A significant number of missiles are being launched in the ongoing conflict between the U.S. and Iran.
- Intercepted Missiles: Many of these missiles are also being intercepted during the conflict.
See More
Three Key Sectors to Monitor While the S&P 500 Moves Sideways
Geopolitical Concerns: Ongoing geopolitical issues, including tensions related to Iran and international trade, are impacting market sentiment.
Tech Sector Pressures: The tech sector is facing challenges, particularly due to concerns surrounding artificial intelligence.
Investor Behavior: Instead of withdrawing from equities, investors are shifting their focus within the market.
Market Opportunities: This rotation in investment strategy is creating new pockets of opportunity for investors.
See More
U.S. Military Action Against Iran Escalates, Defense Stocks Hit Record Highs
- Defense Stocks Surge: Aerospace and defense stocks soared to record levels on Monday as escalating U.S. rhetoric towards Iran shifted market expectations towards a sustained military campaign, with the SPDR S&P Aerospace & Defense ETF (NYSE:XAR) climbing 3.6% in mid-morning trading.
- Trump's Warning: In a CNN interview, Trump hinted that the most intense phase of military action is yet to come, stating, 'We haven't even started hitting them hard,' which has heightened market concerns about future military conflicts.
- Pentagon's Statement: Defense Secretary and Joint Chiefs emphasized that the military campaign is 'not a single overnight operation,' indicating that achieving military objectives will take time and suggesting that additional forces may be deployed to the region.
- Market Demand Expectations: With over 100 aircraft involved in initial strikes, markets are pricing in sustained demand for advanced weapon systems, air defense, and surveillance technologies, reflecting an optimistic sentiment towards the defense sector.
See More
Astrana Health Reports Strong Quarterly Earnings, Shares Surge
- Earnings Beat: Astrana Health Inc. reported quarterly earnings of 54 cents per share, significantly surpassing the analyst consensus estimate of 11 cents, indicating a strong improvement in profitability and boosting market confidence in future growth.
- Sales Growth: The company achieved quarterly sales of $950.526 million, exceeding the analyst consensus estimate of $930.451 million, demonstrating robust demand for its products and competitive positioning, which may drive future investments and expansion.
- Stock Surge: Astrana Health's shares jumped 29.5% to $26.32 during Monday's session, reflecting a positive investor reaction to the strong earnings report, potentially attracting more institutional investors' interest.
- Market Context: While U.S. stocks were generally lower, with the Dow Jones index falling over 150 points, Astrana Health's strong performance highlights the resilience of individual stocks in uncertain market conditions, possibly providing new investment opportunities for investors.
See More
ITALY'S LEONARDO CEO: UK GOVERNMENT TO ANNOUNCE JUMBO HELICOPTER ORDER IN THE NEXT DAY OR TWO
Italy's Leonardo CEO Announcement: The CEO of Italy's Leonardo has indicated that news regarding a significant order for Jumbos helicopters from the UK government is expected soon.
Upcoming Order Details: The announcement is anticipated within the next one or two days, highlighting the importance of this potential contract for Leonardo.
See More
