Darden Restaurants (DRI - Free Report) closed the most recent trading day at $127.34, moving +1.02% from the previous trading session. This change outpaced the S&P 500's 0.07% loss on the day. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq lost 0.22%.
Coming into today, shares of the owner of Olive Garden and other chain restaurants had gained 9.7% in the past month. In that same time, the Retail-Wholesale sector gained 7.17%, while the S&P 500 gained 4.58%.
Investors will be hoping for strength from DRI as it approaches its next earnings release, which is expected to be September 19, 2019. On that day, DRI is projected to report earnings of $1.36 per share, which would represent year-over-year growth of 1.21%. Meanwhile, our latest consensus estimate is calling for revenue of $2.14 billion, up 3.66% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.39 per share and revenue of $9.04 billion. These totals would mark changes of +9.76% and +6.23%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for DRI. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. DRI is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that DRI has a Forward P/E ratio of 19.73 right now. For comparison, its industry has an average Forward P/E of 23.38, which means DRI is trading at a discount to the group.
We can also see that DRI currently has a PEG ratio of 1.96. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.28 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 40% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.