Should I Buy DCO? DCO 2026 Analysis

Should You Buy Ducommun Inc (DCO) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

121.080

1 Day change

1.53%

52 Week Range

123.870

Analysis Updated At

2026/02/04

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Intellectia Proprietary Trading Signals
- AI Stock Picker: No signal on given stock today.
- SwingMax: No signal on given stock recently.
Despite today’s -4.04% pullback to $116.415, the trend setup remains bullish (SMA_5 > SMA_20 > SMA_200 + positive MACD expansion), making the dip a reasonable buy-now entry for an impatient buyer.
Options positioning is aggressively call-skewed (very low put/call ratios), which typically aligns with bullish near-term sentiment.
Wall Street has been raising price targets and reiterating Buys, implying upside from current levels into/after the late-Feb earnings.
Net: Buy now with the expectation of a rebound toward nearby resistance (around $120–$124+), while acknowledging earnings on 2026-02-26 is the next major catalyst.

Technical Analysis

Trend: Bullish structure with moving averages aligned SMA_5 > SMA_20 > SMA_200 (trend still up even after today’s drop).
Momentum: MACD histogram +0.15 and expanding → bullish momentum remains intact.
RSI (6): 66.7 (upper-neutral) → not screaming “overbought,” but suggests upside may be choppier after a strong run.
Key levels:
- Pivot/support: $115.09 (price is sitting just above this—important near-term line)
- Next supports: $109.76 (S1) then $106.46 (S2)
- Resistances/targets: $120.43 (R1) then $123.73 (R2)
Quant pattern read-through (provided): mild bearish drift expected over 1W/1M, but the dominant MA/MACD trend still favors buying dips near support.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning/Sentiment: Open interest put/call 0.16 and volume put/call 0.02 → extremely call-heavy sentiment.
Activity: Today’s options volume 59 vs 30D avg (shown as 107.27%) → activity is elevated; flow is overwhelmingly calls (puts volume = 1).
Volatility: IV 30D 36.87 vs HV 31.77 → options are pricing modestly higher movement than realized; IV percentile 42.23 (not extreme).

Technical Summary

Sell

Buy

Positive Catalysts

- Earnings catalyst: QDEC 2025 earnings on 2026-02-26 (pre-market) with Street EPS est. 0.91.
- Analyst momentum: Multiple firms recently raised price targets and maintained Buy ratings.
- Sector tailwinds cited by analysts: aerospace OE demand > supply, strong aftermarket pricing, and improving defense hardware demand/backlog dynamics.

Neutral/Negative Catalysts

- Recent quarter profitability shock: 2025/Q3 showed a large net loss and sharply negative EPS (likely to weigh on confidence until clarified/normalized).
- Near-term technical risk: if $115 breaks, downside can accelerate toward $109.76 support.
- Event risk: the next major move could be dictated by the Feb 26 earnings outcome (beat/miss + guidance).

Financial Performance

Latest reported quarter: 2025/Q3
- Revenue: $212.558M (+5.53% YoY) → steady top-line growth.
- Gross margin: 26.57% (+1.61% YoY) → margin trend improved.
- Net income: -$64.446M (-735.06% YoY) → significant deterioration.
- EPS: -4.3 (-741.79% YoY) → major downside; key item to understand going into the next print.
Overall: operating trend on revenue/margins looks constructive, but the profitability collapse is the central overhang until the next earnings updates the narrative.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Trend (recent changes): clear positive momentum—multiple price target raises in January 2026, and coverage/Buy support established in late 2025.
Notable updates:
- 2026-01-28: B. Riley raised PT to $127 (from $108), Buy.
- 2026-01-20: Goldman Sachs raised PT to $132 (from $117), Buy.
- 2026-01-09: Truist raised PT to $124 (from $107), Buy.
- 2025-12-11: Citi initiated Buy, PT $110.
Wall Street pros: demand/supply dynamics in aerospace, aftermarket strength, defense recapitalization themes.
Wall Street cons: defense margin risk from contract mix and generally elevated sector valuations (stock selection matters).

5 Analyst Rating

Wall Street analysts forecast DCO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DCO is 111.8 USD with a low forecast of 100 USD and a high forecast of 124 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

5 Buy

0 Hold

0 Sell

Strong Buy

Current: 119.250

Low

100

Averages

111.8

High

124

Current: 119.250

Low

100

Averages

111.8

High

124

B. Riley

Buy

maintain

$108 -> $127

AI Analysis

2026-01-28

Reason

B. Riley

Price Target

$108 -> $127

AI Analysis

2026-01-28

maintain

Buy

Reason

B. Riley raised the firm's price target on Ducommun to $127 from $108 and keeps a Buy rating on the shares. Ducommun is expected to report Q4 results in late February, with the firm modeling revenue of $216M and EBITDA of $35M, slightly below consensus, but rising defense budgets and generational recapitalization in radar and missile platforms provide upside potential, the analyst tells investors in a research note.

Goldman Sachs

Buy

maintain

$117 -> $132

2026-01-20

Reason

Goldman Sachs

Price Target

$117 -> $132

2026-01-20

maintain

Buy

Reason

Goldman Sachs raised the firm's price target on Ducommun to $132 from $117 and keeps a Buy rating on the shares. The firm's Q4 Aerospace & Defense preview highlights favorable aerospace OE conditions, with supply below demand, while aftermarket growth outpaces global ASMs with strong pricing supporting margins, the analyst tells investors in a research note. Business jet demand remains solid amid tight supply, defense hardware growth is improving though margins face risk from shifting contracts, defense tech momentum emphasizes faster, commercial-style providers, and federal IT obligations continue under pressure, the firm says.

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DCO Should I Buy

DCO Should I Buy

Should You Buy Ducommun Inc (DCO) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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