What's Happening with DRI
Restaurant chain Darden Restaurants (DRI) will report fiscal first-quarter numbers before the market open September 20. The consensus calls for earnings of $1.22 for the quarter, up from $0.99 during the same period last year. DRI stock has appreciated 23.2% on the year.
Technical Analysis
DRI was recently trading at $118.7 down $2.23 from its 12-month high and $41.15 above its 12-month low. InvestorsObserver's Stock Score Report gives DRI a 89 long-term technical score and a 94 short-term technical score. The stock has recent support above $115 and recent resistance below $121. Of the 22 analysts who cover the stock 11 rate it Strong Buy, 1 rate it Buy, 10 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell. DRI gets a score of 75 from InvestorsObserver's Stock Score Report.
Analysts' Thoughts
Darden has been a strong outperformer in 2018, with the stock rising sharply in reaction to a string of three consecutive better than expected quarterly reports. Last quarter the company reported year over year earnings growth of 17.8%, and if the company is able to post earnings in-line with the consensus for its most recent quarter it would translate to a 23.2% jump from the same period last year. The street is actually betting on even stronger growth, with a whisper number of $1.25, which would be a 26% year over year increase. One thing to be aware of is that the stock is priced for perfection, with a trailing P/E of 25 and a forward P/E of 19.5. With the stock up so sharply this year already, there is a decent amount of downside risk should results fail to impress the market, so traders with long positions in the stock should have a clear exit strategy in mind just in case the stock does sell off in order to lock in some of the recent gains. Analysts have an average price target of $113.28 on the stock.