Darden Restaurants (DRI) Stock Moves -0.3%: What You Should Know
Darden Restaurants (DRI) closed the most recent trading day at $146.70, moving -0.3% from the previous trading session. This change was narrower than the S&P 500's 0.39% loss on the day. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the owner of Olive Garden and other chain restaurants had gained 10.37% in the past month. In that same time, the Retail-Wholesale sector gained 1.84%, while the S&P 500 gained 6.77%.
Darden Restaurants will be looking to display strength as it nears its next earnings release. On that day, Darden Restaurants is projected to report earnings of $1.41 per share, which would represent 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.
DRI's full-year Zacks Consensus Estimates are calling for earnings of $7.68 per share and revenue of $10.3 billion. These results would represent year-over-year changes of +3.78% and +6.91%, respectively.
It is also important to note the recent changes to analyst estimates for Darden Restaurants. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Darden Restaurants is currently a Zacks Rank #3 (Hold).
Digging into valuation, Darden Restaurants currently has a Forward P/E ratio of 19.15. This valuation marks a discount compared to its industry's average Forward P/E of 24.16.
We can also see that DRI currently has a PEG ratio of 1.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.94 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 122, putting it in the top 49% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DRI in the coming trading sessions, be sure to utilize Zacks.com.
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Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
