Darden Restaurants (DRI) closed the most recent trading day at $125.48, moving +1.14% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.17%.
Prior to today's trading, shares of the owner of Olive Garden and other chain restaurants had gained 1.65% over the past month. This has lagged the Retail-Wholesale sector's gain of 8.32% and the S&P 500's gain of 4.92% in that time.
Investors will be hoping for strength from DRI as it approaches its next earnings release, which is expected to be September 19, 2019. The company is expected to report EPS of $1.36, up 1.49% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.14 billion, up 3.66% from the prior-year quarter.
DRI's full-year Zacks Consensus Estimates are calling for earnings of $6.39 per share and revenue of $9.04 billion. These results would represent year-over-year changes of +9.79% and +6.23%, respectively.
It is also important to note the recent changes to analyst estimates for DRI. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. DRI is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note DRI's current valuation metrics, including its Forward P/E ratio of 19.42. Its industry sports an average Forward P/E of 23.07, so we one might conclude that DRI is trading at a discount comparatively.
It is also worth noting that DRI currently has a PEG ratio of 1.92. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.49 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 145, which puts it in the bottom 44% 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.
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Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
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