BN · rank #19 · 2026-10-20
DRS
NASDAQ · $9.39B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | -0.14 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +7.0% |
| Forward net margin Consensus forward net margin. | +8.4% |
| Net margin TTM Trailing twelve month net margin. | +8.5% |
| Margin expansion Forward minus trailing net margin (percentage points). | -0.1% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | — |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.74× |
| Analyst upside Spread between the consensus 12m target and the current price. | +51.2% |
| Last EPS surprise Most recent reported EPS versus consensus. | +30% |
| Market cap (USD) | $9.39B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Leonardo DRS supplies mission-critical defense electronics, including advanced thermal sensing cores, tactical C-band AESA radars, counter-UAS systems, and naval power propulsion to defense customers.
Rationale
Strong revenue visibility backed by a record $5.1 billion funded backlog and earnings momentum (+29.6% EPS surprise) reinforce DRS's position solving critical supply bottlenecks in U.S. air defense and precision sensing.
Material risks
- 1Heavy customer concentration in the U.S. Navy (38%) and U.S. Army (36%) exposes revenue to federal budget delays or major program reprioritizations.
- 2Uncooled thermal imaging and tactical radar technologies face potential commoditization or displacement by larger defense primes competing for uncommitted IDIQ task orders.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.