Chart Of The Day: Leonardo DRS – Mixed Opinions


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 The Chart of the Day belongs to the electronic defense company Leonardo DRS (DRS). I found the stock by using Barchart’s powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum, and having a Trend Seeker buy signal then used the Flipchart  feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 10/10 the stock gained 9.32%. DRS Price vs Daily Moving AveragesLeonardo DRS, Inc., together with its subsidiaries, provides defense electronic products, systems, and military support services. It operates through Advanced Sensing and Computing (ASC) segment, and Integrated Mission Systems (IMS) segments. The ASC segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision-making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing. This segment also provides network computing, which is utilized across a range of mission applications including platform computing on the ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications. Its 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 for the U.S. and allied defense customers. This segment also offers naval power and propulsion systems, which include power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems, and associated efficient, rugged, and compact power conversion, electrical actuation systems, and cooling technologies; and motor controllers, instrumentation and control equipment, electrical actuation systems, and thermal management systems. The company was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo S.p.a.Barchart’s Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
 Barchart Technical Indicators:

  • 100% technical buy signals
  • 97.70+ Weighted Alpha
  • Trend Seeker buy signal
  • Above its 20, 50 and 100-day moving averages
  • 9 new highs and up 17.58% in the last month
  • Relative Strength Index 65.77%
  • Technical support level at $19.73
  • Recently traded at $19.87 with 50-day moving average of $17.71
     
  • Fundamental Factors:

  • Market Cap $5.25 billion
  • P/E 26.85
  • Revenue is expected to grow 3.10% this year and another 6.70% next year
  • Earnings are estimated to increase an additional 22.10% next year and continue to compound at an annual rate of 8.58% for the next 5 years
  • Analysts and Investor Sentiment — I don’t buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it’s hard to make money swimming against the tide:

  • Wall Street analyst gave 7 strong buy opinions on the stock
  • Analysts’ price targets are between $19 and $22 with a consensus of $21.40
  • CFRAs MarketScope rates it a sell and thinks its over valued
  • 6,190 investors monitor the stock on Seeking Alpha
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