Leonardo DRS, Inc. (DRS) shares soared 9% in the last trading session to close at $34.26. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.5% loss over the past four weeks.
The latest uptick in DRS’ share price can be attributed to the recent announcement made by the U.S. President indicating a big boost in defense spending, as part of the upcoming U.S. fiscal 2026 budget. Notably, U.S. President Donald Trump said yesterday (9th April) that the government has "essentially approved a budget" that would allocate about $1 trillion to defense.
This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +21.4%. Revenues are expected to be $744.53 million, up 8.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Leonardo DRS, Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DRS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Leonardo DRS, Inc. is a member of the Zacks Aerospace - Defense Equipment industry. One other stock in the same industry, Teledyne Technologies (TDY), finished the last trading session 7.6% higher at $468.69. TDY has returned -10.8% over the past month.
For Teledyne
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Leonardo DRS, Inc. (DRS): Free Stock Analysis Report Teledyne Technologies Incorporated (TDY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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