62.2 F
New York
Wednesday, September 30, 2020

The Unprecedented Rise of Darden Restaurants Inc. (NYSE:DRI)

Must read

The Unprecedented Rise of Bilibili Inc. (NASDAQ:BILI)

Bilibili Inc. (BILI) shares are trading at lower $40.66 and the avg recommendation for the stock is Strong Buy, while the current analyst price...

Weyerhaeuser Company (NYSE:WY) is Holding Steady

Weyerhaeuser Company (WY) shares are trading at lower $28.05 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

BigCommerce Holdings Inc. (NASDAQ:BIGC) Recent Earnings Shows Major Promise

BigCommerce Holdings Inc. (BIGC) shares are trading at higher $87.79 and the avg recommendation for the stock is Hold, while the current analyst price...

American Tower Corporation (REIT) (NYSE:AMT) is Waving the Bull Flag

American Tower Corporation (REIT) (AMT) shares are trading at higher $240.12 and the avg recommendation for the stock is Moderate Buy, while the current...

The Darden Restaurants Inc. (DRI) shares are trading at higher $75.35 and the avg recommendation for the stock is Moderate Buy. The current analyst price target stands at $82.96.

To add more color to this target, the company’s high over the last year is $128.41 and the low is $26.15. Over the last 52 weeks, DRI is down -41.32% while the S&P 500 is up 0.46%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, DRI reported a profit of $538.0 million. Darden Restaurants Inc. also saw revenues increase to $2.35 billion. In addition, DRI has free cash flow of $531.0 million as of 02-2020 The company’s EBITDA came in at $366.0 million which compares well with its peers.

Find out when DRI reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.

Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. DRI has a short ratio of 1.75 and outstanding shares of 121.30M.

Company Outlook

DRI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 3.49 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 5.16. Darden Restaurants Inc. DRI also noted assets of $9.97 billion at the end of the last quarter. Investors should also keep an eye on sector updates as DRI has historically followed its peers on positive news.

All told, Darden Restaurants Inc. DRI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, DRI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Darden Restaurants Inc. DRI is now commanding a market cap of 10.32B and a float of 120.40M. DRI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of DRI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in DRI, either long or short, and we have not been compensated for this article.

Latest article

Mastercard Incorporated (NYSE:MA) is Waving the Bear Flag

Mastercard Incorporated (MA) shares are trading at lower $336.23 and the avg recommendation for the stock is Strong Buy, while the current analyst price...

The Forecast Just Changed on Dow Inc. (NYSE:DOW)

Dow Inc. (DOW) shares are trading at lower $46.57 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...

Alamos Gold Inc. (NYSE:AGI) on the Path to Ruin

Alamos Gold Inc. (AGI) shares are trading at lower $8.82 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

Is Now the Time to Invest in Texas Instruments Incorporated (NASDAQ:TXN)?

Texas Instruments Incorporated (TXN) shares are trading at lower $141.50 and the avg recommendation for the stock is Moderate Buy, while the current analyst...

Toll Brothers Inc. (NYSE:TOL) Stock is Plummeting, Here is Why

Toll Brothers Inc. (TOL) shares are trading at lower $47.12 and the avg recommendation for the stock is Moderate Buy, while the current analyst...