Should I Buy DSGR? DSGR 2026 Analysis

Should You Buy Distribution Solutions Group Inc (DSGR) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Sell

Latest Price

30.860

1 Day change

4.19%

52 Week Range

33.800

Analysis Updated At

2026/02/04

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Not a good buy right now for an impatient investor: near-term indicators and pattern-based odds skew bearish (model suggests ~-7.04% over the next week).
No Intellectia edge today (no AI Stock Picker / SwingMax entry), so there’s no strong tactical reason to force an entry.
Fundamentals show revenue growth but sharp profit/EPS compression in the latest reported quarter, increasing the risk of disappointment into the 2026-03-05 earnings event.

Technical Analysis

Trend/Momentum: MACD histogram is negative (-0.0465) and still below zero; while the negative momentum is contracting, it hasn’t flipped bullish.
RSI: RSI(6)=57.0 (neutral) — not oversold; no clear “buy-the-dip” technical trigger.
Moving averages: Converging MAs suggest consolidation/chop rather than a clean uptrend.
Levels: Pivot 28.924; resistance R1 29.956 then R2 30.593. With price ~29.5, upside is quickly capped by nearby resistance; support S1 27.893 is meaningfully lower.
Probabilistic near-term bias (pattern analogs): 70% chance of -0.81% next day, -7.04% next week, -3.99% next month.

Intellectia Proprietary Trading Signals

AI Stock Picker: no signal on given stock today.
SwingMax: No signal on given stock recently.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Open interest is small (calls 34 vs puts 12; total OI 46) and today’s options volume is 0 — sentiment read is weak due to illiquidity.
Put/Call OI ratio 0.35 leans bullish positioning, but with near-zero volume it’s not a strong conviction signal.
IV: 30D implied vol ~78.66 vs historical vol ~30.91 (IV elevated), implying the market is pricing meaningful uncertainty (notably ahead of earnings).

Technical Summary

Sell

Buy

Positive Catalysts

- Upcoming earnings event: QDEC 2025 earnings on 2026-03-05 (pre-market) can act as a catalyst if results/guide surprise positively.
- Business scale/positioning: Specialty distribution footprint with ~200,000 MRO customers (supports revenue resiliency).
- Latest reported top-line growth: 2025/Q3 revenue +10.67% YoY.

Neutral/Negative Catalysts

- Profitability deterioration: 2025/Q3 net income -70.57% YoY and EPS -69.57% YoY, with gross margin down (-3.12% YoY) — raises quality-of-growth concerns.
- Technical/quant bias near term is negative (pattern-based odds favor downside over 1 week / 1 month).
- Event risk: Elevated implied volatility into earnings suggests the market expects a sizable move; with margins under pressure, downside reaction risk is meaningful.
- Positioning signals are not supportive: hedge fund and insider trading trends are neutral (no “smart money” tailwind visible).

Financial Performance

Latest quarter provided: 2025/Q3.
Revenue: $517.96M, up +10.67% YoY (solid top-line growth).
Profitability: Net income $6.45M, down -70.57% YoY (sharp compression).
EPS: $0.14, down -69.57% YoY.
Gross margin: 32.88%, down -3.12% YoY (margin pressure is the key negative trend heading into Q4/FY results).

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

No analyst rating or price target change data was provided in the dataset, so a verified trend in Wall Street upgrades/downgrades can’t be confirmed here.
Practical pro view (inferred from available data): revenue growth and upcoming earnings catalyst.
Practical con view (inferred from available data): steep YoY profit/EPS decline and margin compression make the story harder to underwrite short-term, especially ahead of earnings.
Influential/political flows: No recent congress trading data available; no notable politician activity indicated.

1 Analyst Rating

Wall Street analysts forecast DSGR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DSGR is 41 USD with a low forecast of 41 USD and a high forecast of 41 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.

1 Buy

0 Hold

0 Sell

Moderate Buy

Current: 29.620

Low

Averages

High

Current: 29.620

Low

Averages

High

Barrington

Outperform

maintain

$39 -> $41

AI Analysis

2025-08-25

Reason

Barrington

Price Target

$39 -> $41

AI Analysis

2025-08-25

maintain

Outperform

Reason

Barrington raised the firm's price target on Distribution Solutions to $41 from $39 and keeps an Outperform rating on the shares. The firm cites better-than-expected Q2/2025 results. Further, Barrington believes that valuation multiple expansion for Distribution Solutions will be warranted over time as the company increases its free cash flow generation and drives margins structurally higher.

Barrington Research

Kevin Steinke

Buy

Maintains

$44

2025-03-11

Reason

Barrington Research

Kevin Steinke

Price Target

$44

2025-03-11

Maintains

Buy

Reason

DSGR Should I Buy

DSGR Should I Buy

Should You Buy Distribution Solutions Group Inc (DSGR) 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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