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Darden Restaurants (DRI) Gains As Market Dips: What You Should Know

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In the latest trading session, Darden Restaurants (DRI - Free Report) closed at $139.96, marking a +0.23% move from the previous day. This change outpaced the S&P 500's 0.29% loss on the day.

Prior to today's trading, shares of the owner of Olive Garden and other chain restaurants had lost 2.31% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 4.2% and lagged the S&P 500's loss of 1.27% in that time.

DRI will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.70, up 237.1% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.12 billion, up 67.25% from the prior-year quarter.

DRI's full-year Zacks Consensus Estimates are calling for earnings of $3.97 per share and revenue of $7.04 billion. These results would represent year-over-year changes of +26.84% and -9.82%, respectively.

Investors might also notice recent changes to analyst estimates for DRI. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% higher. DRI currently has a Zacks Rank of #2 (Buy).

Digging into valuation, DRI currently has a Forward P/E ratio of 35.2. This valuation marks a premium compared to its industry's average Forward P/E of 32.55.

It is also worth noting that DRI currently has a PEG ratio of 3.52. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants industry currently had an average PEG ratio of 3.07 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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