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Darling Ingredients (DAR) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Darling Ingredients (DAR - Free Report) closed at $69.51, marking a -0.3% move from the previous day. This change lagged the S&P 500's daily gain of 0.42%.

Prior to today's trading, shares of the producer of natural ingredients from edible and inedible bionutrients had gained 3.29% over the past month. This has outpaced the Consumer Staples sector's loss of 1.03% and the S&P 500's gain of 2.64% in that time.

Investors will be hoping for strength from DAR as it approaches its next earnings release. The company is expected to report EPS of $0.82, up 110.26% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.09 billion, up 28.27% from the year-ago period.

DAR's full-year Zacks Consensus Estimates are calling for earnings of $3.38 per share and revenue of $4.42 billion. These results would represent year-over-year changes of +72.45% and +23.78%, respectively.

Investors might also notice recent changes to analyst estimates for DAR. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 11.1% higher within the past month. DAR currently has a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that DAR has a Forward P/E ratio of 20.6 right now. This valuation marks a discount compared to its industry's average Forward P/E of 20.66.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% 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.

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