Leonardo DRS, Inc. (DRS) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Leonardo DRS, Inc. has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Company Performance Indicators - The upgrade for Leonardo DRS, Inc. suggests an improvement in the company's underlying business, which should encourage investors to drive the stock price higher [5]. - The Zacks Consensus Estimate indicates that Leonardo DRS, Inc. is expected to earn $1.07 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 15.1% [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7]. - The upgrade to Zacks Rank 2 places Leonardo DRS, Inc. in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].