Reasons to Include Leonardo DRS Stock in Your Portfolio Right Now

Leonardo DRS, Inc. DRS, with a robust backlog, rising earnings estimates, efficient debt management and strong liquidity, 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 Forecast & Surprise HistoryThe Zacks Consensus Estimate for DRS’ 2025 earnings per share (EPS) has increased 0.9% to $1.08 per share over the past 30 days.The Zacks Consensus Estimate for Leonardo DRS’ total revenues for 2025 stands at $3.52 billion, which indicates year-over-year growth of 9%.The company’s long-term (three to five years) earnings growth rate is 14.6%. DRS surpassed expectations in the last four reported quartersand delivered an average earnings surprise of 20.42% in the last four quarters.DRS’ LiquidityThe company’s current ratio at the end of the first quarter of 2025 was 2.02, higher than the industry’s average of 1.79. The ratio, being greater than one, indicates Leonardo DRS’ ability to meet its future short-term liabilities without difficulties.Overview of DRS’ Debt ProfileCurrently, Leonardo DRS’ total debt to capital is 12.34%, much better than the industry’s average of 52.52%.DRS’ times interest earned ratio (TIE) at the end of the first quarter of 2025 was 17.8. 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’ Rising BacklogLeonardo DRS’ total backlog as of March 31, 2025 increased 9.8% to $8.61 billion from the year-ago reported figure. The rise in the backlog was primarily attributed to the receipt of new awards within the company's Advanced Sensing and Computing segment across several domains, including dismounted army, naval and aerial sensor programs.DRS Stock Price PerformanceIn the past six months, DRS shares have rallied 14.6% compared with the industry’s rise of 2.5%.Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Curtiss-Wright Corp. CW, Woodward, Inc. WWD and FTAI Aviation Ltd. FTAI, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.CW’s long-term earnings growth rate is 12%. The Zacks Consensus Estimate for the company’s total revenues for 2025 stands at $3.38 billion, which indicates year-over-year growth of 8.3%.Woodward’s long-term earnings growth rate is 13%. The Zacks Consensus Estimate for WWD’s fiscal 2025 sales is pegged at $3.43 billion, which implies an improvement of 3.3%.The Zacks Consensus Estimate for FTAI’s 2025 EPS stands at $5.14 per share, which calls for massive growth of 133.6%. The Zacks Consensus Estimate for FTAI’s total revenues for 2025 is pegged at $2.11 billion, which implies growth of 21.8%.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 Curtiss-Wright Corporation (CW): Free Stock Analysis Report Woodward, Inc. (WWD): Free Stock Analysis Report FTAI Aviation Ltd. (FTAI): Free Stock Analysis Report Leonardo DRS, Inc. (DRS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks