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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 at $143.14 in the latest trading session, marking a +0.46% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.75%. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq added 0.13%.
Coming into today, shares of the owner of Olive Garden and other chain restaurants had gained 12.8% in the past month. In that same time, the Retail-Wholesale sector lost 1.93%, while the S&P 500 gained 4.98%.
Wall Street will be looking for positivity from Darden Restaurants as it approaches its next earnings report date. In that report, analysts expect Darden Restaurants to post earnings of $1.41 per share. This would mark a year-over-year decline of 4.73%. Meanwhile, our latest consensus estimate is calling for revenue of $2.42 billion, up 6.56% from the prior-year quarter.
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. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. Darden Restaurants currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Darden Restaurants is holding a Forward P/E ratio of 18.55. For comparison, its industry has an average Forward P/E of 23.31, which means Darden Restaurants is trading at a discount to the group.
Investors should also note that DRI has a PEG ratio of 1.87 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. The Retail - Restaurants was holding an average PEG ratio of 1.96 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Darden Restaurants (DRI) Gains As Market Dips: What You Should Know
Darden Restaurants (DRI - Free Report) closed at $143.14 in the latest trading session, marking a +0.46% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.75%. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq added 0.13%.
Coming into today, shares of the owner of Olive Garden and other chain restaurants had gained 12.8% in the past month. In that same time, the Retail-Wholesale sector lost 1.93%, while the S&P 500 gained 4.98%.
Wall Street will be looking for positivity from Darden Restaurants as it approaches its next earnings report date. In that report, analysts expect Darden Restaurants to post earnings of $1.41 per share. This would mark a year-over-year decline of 4.73%. Meanwhile, our latest consensus estimate is calling for revenue of $2.42 billion, up 6.56% from the prior-year quarter.
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. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. Darden Restaurants currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Darden Restaurants is holding a Forward P/E ratio of 18.55. For comparison, its industry has an average Forward P/E of 23.31, which means Darden Restaurants is trading at a discount to the group.
Investors should also note that DRI has a PEG ratio of 1.87 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. The Retail - Restaurants was holding an average PEG ratio of 1.96 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.