Back to top

Image: Bigstock

Darling Ingredients (DAR) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, Darling Ingredients (DAR - Free Report) closed at $68.54, marking a -1.3% move from the previous day. This move lagged the S&P 500's daily loss of 0.46%.

Prior to today's trading, shares of the producer of natural ingredients from edible and inedible bionutrients had gained 4.42% over the past month. This has outpaced the Consumer Staples sector's gain of 0.06% and the S&P 500's gain of 1.69% in that time.

Wall Street will be looking for positivity from DAR as it approaches its next earnings report date. This is expected to be August 10, 2021. The company is expected to report EPS of $0.82, up 110.26% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.09 billion, up 28.27% from the prior-year quarter.

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 recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.94% higher. DAR currently has a Zacks Rank of #2 (Buy).

In terms of valuation, DAR is currently trading at a Forward P/E ratio of 20.52. Its industry sports an average Forward P/E of 20.57, so we one might conclude that DAR is trading at a discount comparatively.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Darling Ingredients Inc. (DAR) - free report >>

Published in