DRS Should I Buy
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Leonardo DRS Inc is not a strong buy for a beginner, long-term investor at this moment. While the company has demonstrated strong financial growth in the latest quarter, the technical indicators are bearish, insider selling has increased significantly, and there is no recent positive news or strong trading signals to support immediate entry. Additionally, analysts have recently lowered the price target, and there are no significant positive catalysts to suggest a strong upward trend in the near term.
The technical indicators show bearish momentum. The MACD is below 0 and negatively contracting, the RSI is neutral at 66.386, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near resistance levels (R2: 41.719) and has limited upward momentum.
The company's financial performance in Q3 2025 is strong, with revenue up 18.23% YoY, net income up 26.32% YoY, and EPS up 28.57% YoY. Gross margin also improved by 6.05%.
Insider selling has increased by 134.16% over the last month, suggesting a lack of confidence from insiders. Analysts have lowered the price target from $45 to $40, and there are no recent news or significant positive catalysts. The technical trend is bearish, and the stock has a 50% chance of declining 1.55% in the next week.
In Q3 2025, Leonardo DRS showed strong growth with revenue increasing to $960 million (up 18.23% YoY), net income rising to $72 million (up 26.32% YoY), EPS increasing to 0.27 (up 28.57% YoY), and gross margin improving to 22.6% (up 6.05% YoY).
Morgan Stanley analyst Kristine Liwag recently lowered the price target from $45 to $40 and maintained an Equal Weight rating. The firm views Aerospace and Defense as an attractive sector going into 2026 but does not see significant upside for Leonardo DRS shares in the near term.
