What's Happening with DRI
Darden Restaurants (DRI) reports its fiscal fourth-quarter earnings before the market open June 20 with the consensus calling for earnings of $1.73 per share and revenue of $2.24 billion. DRI stock is up 19.4% year to date.
Technical Analysis
DRI was recently trading at $119.22 down $6.11 from its 12-month high and $27.88 above its 12-month low. InvestorsObserver's Stock Score Report gives DRI an 87 long-term technical score and a 75 short-term technical score. The stock has recent support above $115 and recent resistance below $125. Of the 22 analysts who cover the stock 14 rate it Strong Buy, 0 rate it Buy, 7 rate it Hold, 0 rate it Sell, and 1 rate it Strong Sell, DRI gets a score of 73 from InvestorsObserver's Stock Score Report.
Analysts' Thoughts
DRI stock hit a new all-time high in May before hitting a little profit taking in sympathy to weakness in the overall market. The stock has already begun to recover and could climb to a new record high on the back of a better than expected Q4 report. The company has a six-quarter streak of positive earnings surprises and the street is looking for another earnings beat with a whisper number of $1.75 for the quarter. Profits have risen 20.8% annually over the last five years and looking ahead analysts expect to see earnings rise at an annual rate of 12% over the next five years. If Darden is able to deliver on the expected profit growth the stock has a lot of additional upside potential as shares are currently trading at just 18.5 time future earnings. With consumer confidence running extremely high, dine-in restaurants continue to look attractive at this time. Analysts see additional upside in DRI stock with an average price target of $125.74.