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Darden Restaurants (DRI) Outpaces Stock Market Gains: What You Should Know
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Darden Restaurants (DRI - Free Report) closed the most recent trading day at $140.22, moving +1.44% from the previous trading session. This change outpaced the S&P 500's 0.1% gain on the day.
Heading into today, shares of the owner of Olive Garden and other chain restaurants had lost 7.82% over the past month, lagging the Retail-Wholesale sector's loss of 3.69% and the S&P 500's gain of 1.53% in that time.
Investors will be hoping for strength from DRI as it approaches its next earnings release. The company is expected to report EPS of $1.64, up 192.86% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.24 billion, up 46.45% from the year-ago period.
DRI's full-year Zacks Consensus Estimates are calling for earnings of $7.42 per share and revenue of $9.4 billion. These results would represent year-over-year changes of +72.16% and +30.59%, respectively.
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 a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. DRI currently has a Zacks Rank of #3 (Hold).
In terms of valuation, DRI is currently trading at a Forward P/E ratio of 18.64. Its industry sports an average Forward P/E of 26.33, so we one might conclude that DRI is trading at a discount comparatively.
Investors should also note that DRI has a PEG ratio of 1.86 right now. 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 3.04 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.
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Darden Restaurants (DRI) Outpaces Stock Market Gains: What You Should Know
Darden Restaurants (DRI - Free Report) closed the most recent trading day at $140.22, moving +1.44% from the previous trading session. This change outpaced the S&P 500's 0.1% gain on the day.
Heading into today, shares of the owner of Olive Garden and other chain restaurants had lost 7.82% over the past month, lagging the Retail-Wholesale sector's loss of 3.69% and the S&P 500's gain of 1.53% in that time.
Investors will be hoping for strength from DRI as it approaches its next earnings release. The company is expected to report EPS of $1.64, up 192.86% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.24 billion, up 46.45% from the year-ago period.
DRI's full-year Zacks Consensus Estimates are calling for earnings of $7.42 per share and revenue of $9.4 billion. These results would represent year-over-year changes of +72.16% and +30.59%, respectively.
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 a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. DRI currently has a Zacks Rank of #3 (Hold).
In terms of valuation, DRI is currently trading at a Forward P/E ratio of 18.64. Its industry sports an average Forward P/E of 26.33, so we one might conclude that DRI is trading at a discount comparatively.
Investors should also note that DRI has a PEG ratio of 1.86 right now. 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 3.04 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.