What's Happening with DRI
Darden Restaurants (DRI) is scheduled to report its first-quarter earnings before the market open September 18. The consensus calls for earnings of $1.36 per share, up slightly from $1.34 during the same period last year. DRI is up 27.5% in 2019.
Technical Analysis
DRI was recently trading at $127.35 down $1.06 from its 12-month high and $31.52 above its 12-month low. InvestorsObserver's Stock Score Report gives DRI a 79 long-term technical score and a 90 short-term technical score. The stock has recent support above $115 and recent resistance below $128.50. Of the 24 analysts who cover the stock 13 rate it Strong Buy, 0 rate it Buy, 10 rate it Hold, 0 rate it Sell, and 1 rate it Strong Sell, DRI gets a score of 72 from InvestorsObserver's Stock Score Report.
Analysts' Thoughts
Wall Street sentiment on DRI remains incredibly strong, with the stock currently trading at its all-time high ahead of the upcoming quarterly report. Last quarter was a mixed one with sales falling slightly short of the consensus and earnings topping estimates. Wall Street focused on the earnings beat and shares have risen to a record high. The street is looking for Darden to post another earnings beat this quarter with a $1.38 whisper number. The small earnings beat has already been priced into the stock, so the company must deliver, or shares will correct and move lower from their record high. DRI trades at 22 times earnings, so its valuation is not a major concern, but it is high enough to give downside risk in the wake of a possible earnings miss, and with shares at their all-time high investors may want to consider locking in some profits just in case of a possible negative surprise. The stock is trading above its $125.57 average price target.