Here's Why You Must Add DRS Stock to Your Portfolio Right Now

Leonardo DRS, Inc. DRS, with a strong backlog, rising earnings estimates and efficient debt management, offers a great investment opportunity in the Zacks Aerospace Defense Equipment industry.Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.DRS’ Growth Projections & Surprise History The Zacks Consensus Estimate for DRS’ 2025 earnings per share (EPS) has increased 0.9% to $1.07 per share in the past 60 days. The Zacks Consensus Estimate for Leonardo DRS’ total revenues for 2025 stands at $3.43 billion, which indicates year-over-year growth of 7.4%.The company’s long-term (three to five years) earnings growth is 21.2%. It delivered an average earnings surprise of 22.27% in the last four quarters.Debt Position of DRS Currently, Leonardo DRS’ total debt to capital is 12.92%, much better than the industry’s average of 54.03%.Leonardo DRS’ times interest earned ratio (TIE) at the end of the third quarter of 2024 was 10.5. The TIE ratio of more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.DRS’ Liquidity The company’s current ratio at the end of the third quarter of 2024 was 2.11, higher than the industry’s average of 1.43. The ratio, being greater than one, indicates Leonardo DRS’ ability to meet its future short-term liabilities without difficulties.DRS’ Rising Backlog DRS’ total backlog as of Sept. 30, 2024 increased 75.1% to $8.26 billion from the year-ago quarter’s reported figure. The acceptance of a multi-boat contract to assist electric propulsion activities on the Columbia Class submarine program with the U.S. Navy was the primary driver of the backlog rise.DRS Stock Price Performance In the past six months, DRS shares have rallied 27.2% compared with the industry’s growth of 18.4%.Image Source: Zacks Investment ResearchOther Stocks to Consider A few other top-ranked stocks from the same industry are Astronics Corporation ATRO, which sports a Zacks Rank #1 (Strong Buy), and AerSale ASLE and Mercury Systems MRCY, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for ATRO’s 2025 EPS is pegged at $1.17 per share, which indicates growth of 129.4% from the 2024 estimated figure. The Zacks Consensus Estimate for ATRO’s 2025 total revenues stands at $837.8 million, which indicates growth of 7.6% from the 2024 estimated figure.The Zacks Consensus Estimate for ASLE’s 2025 EPS is pegged at 42 cents, which calls for growth of 183.3% from the 2024 estimated figure. The Zacks Consensus Estimate for ASLE’s 2025 total revenues stands at $421.6 million, which indicates growth of 23% from the 2024 estimated figure.Mercury Systems’ long-term earnings growth rate is 13.2%. The Zacks Consensus Estimate for MRCY’s fiscal 2025 sales is pegged at $848.9 million, which implies an improvement of 1.6% from the fiscal 2024 reported figure.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Astronics Corporation (ATRO): Free Stock Analysis Report Mercury Systems Inc (MRCY): Free Stock Analysis Report AerSale Corporation (ASLE): Free Stock Analysis Report Leonardo DRS, Inc. (DRS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks