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Darden Restaurants (DRI) Gains As Market Dips: What You Should Know
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Darden Restaurants (DRI - Free Report) closed the most recent trading day at $142.53, moving +0.97% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.89%. Meanwhile, the Dow lost 0.63%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Prior to today's trading, shares of the owner of Olive Garden and other chain restaurants had gained 8.57% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.27% and lagged the S&P 500's gain of 11.42% in that time.
Wall Street will be looking for positivity from Darden Restaurants as it approaches its next earnings report date. The company is expected to report EPS of $1.41, down 4.73% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.42 billion, up 6.56% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.68 per share and revenue of $10.3 billion, which would represent changes of +3.78% and +6.91%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Darden Restaurants. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Darden Restaurants is currently a Zacks Rank #3 (Hold).
Digging into valuation, Darden Restaurants currently has a Forward P/E ratio of 18.38. Its industry sports an average Forward P/E of 22.89, so we one might conclude that Darden Restaurants is trading at a discount comparatively.
Investors should also note that DRI has a PEG ratio of 1.86 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DRI's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DRI in the coming trading sessions, be sure to utilize Zacks.com.
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Darden Restaurants (DRI) Gains As Market Dips: What You Should Know
Darden Restaurants (DRI - Free Report) closed the most recent trading day at $142.53, moving +0.97% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.89%. Meanwhile, the Dow lost 0.63%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Prior to today's trading, shares of the owner of Olive Garden and other chain restaurants had gained 8.57% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.27% and lagged the S&P 500's gain of 11.42% in that time.
Wall Street will be looking for positivity from Darden Restaurants as it approaches its next earnings report date. The company is expected to report EPS of $1.41, down 4.73% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.42 billion, up 6.56% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.68 per share and revenue of $10.3 billion, which would represent changes of +3.78% and +6.91%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Darden Restaurants. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Darden Restaurants is currently a Zacks Rank #3 (Hold).
Digging into valuation, Darden Restaurants currently has a Forward P/E ratio of 18.38. Its industry sports an average Forward P/E of 22.89, so we one might conclude that Darden Restaurants is trading at a discount comparatively.
Investors should also note that DRI has a PEG ratio of 1.86 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DRI's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DRI in the coming trading sessions, be sure to utilize Zacks.com.