Leonardo DRS saw an improvement in its IBD SmartSelect Composite Rating Tuesday, from 94 to 96.
The new score means the company is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
Leonardo DRS is currently forming a consolidation, with a 37.99 buy point. Look for the stock to break out in volume at least 40% higher than normal. Keep in mind that it's a later-stage base, and such bases are more prone to failure.
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The stock has a 95 EPS Rating, which means its recent quarterly and annual earnings growth is outpacing 95% of all stocks.
Its Accumulation/Distribution Rating of B- shows moderate buying by institutional investors over the last 13 weeks.
The company reported a 20% rise in earnings for Q3. Sales growth fell to 16%, down from 20% in the previous quarter.
Leonardo DRS holds the No. 8 rank among its peers in the Aerospace/Defense industry group. Howmet Aerospace, Embraer ADR and Innovative Sol & Support are among the top 5 highly-rated stocks within the group.
