Leonardo DRS, Inc. (DRS) Soars to 52-Week High, Time to Cash Out?

Core Viewpoint - Leonardo DRS, Inc. has shown significant stock performance, with an 8% increase over the past month and a 48.2% gain since the start of the year, outperforming both the Zacks Aerospace sector and the Zacks Aerospace - Defense Equipment industry [1][2]. Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $0.18 against a consensus estimate of $0.13 in its last earnings report [2]. - For the current fiscal year, Leonardo DRS, Inc. is projected to achieve earnings of $0.86 per share on revenues of $3.15 billion, reflecting a 17.81% increase in EPS and an 11.4% increase in revenues [3]. - The forecast for the next fiscal year indicates earnings of $1.01 per share on $3.34 billion in revenues, representing year-over-year changes of 18.02% and 6.22%, respectively [3]. Valuation Metrics - The stock currently trades at a valuation of 34.7X current fiscal year EPS estimates, which is above the peer industry average of 29.3X [7]. - On a trailing cash flow basis, the stock trades at 27.9X compared to the peer group's average of 22.2X, with a PEG ratio of 1.93 [7]. Style Scores and Zacks Rank - Leonardo DRS, Inc. has a Value Score of C, a Growth Score of A, and a Momentum Score of B, resulting in a combined VGM Score of A [6]. - The stock holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8]. - The combination of a Zacks Rank of 2 and Style Scores of A or B suggests that the stock may have further upside potential in the near term [9].