Darden Stock Buy Hold or Sell Recommendation

DRI
 Stock
  

USD 125.82  3.69  2.85%   

Considering the 90-day investment horizon and your way above-average risk tolerance, our recommendation regarding Darden Restaurants is 'Strong Buy'. Macroaxis provides Darden Restaurants buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding DRI positions. The advice algorithm takes into account all of Darden Restaurants' available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Darden Restaurants' buy-and-hold perspective. Continue to Darden Restaurants Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Darden and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Darden Restaurants.

Execute Darden Restaurants Buy or Sell Advice

The Darden recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Darden Restaurants. Macroaxis does not own or have any residual interests in Darden Restaurants or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Darden Restaurants' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Darden RestaurantsBuy Darden Restaurants
Strong Buy

Volatility

Details

Hype Condition

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Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

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Analyst Consensus

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Reporting Quality (M-Score)

Details
For the selected time horizon Darden Restaurants has a Risk Adjusted Performance of 0.12, Jensen Alpha of 0.2532, Total Risk Alpha of 0.2816, Sortino Ratio of 0.1259 and Treynor Ratio of 0.1556
Macroaxis provides advice on Darden Restaurants to complement and cross-verify current analyst consensus on Darden Restaurants. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Darden Restaurants is not overpriced, please confirm all Darden Restaurants fundamentals, including its price to book, total debt, number of employees, as well as the relationship between the ebitda and cash flow from operations . Given that Darden Restaurants has a price to earning of 17.00 X, we urge you to verify Darden Restaurants market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Darden Restaurants Trading Alerts and Improvement Suggestions

The company has 5.91 B in debt with debt to equity (D/E) ratio of 2.69, meaning that the company heavily relies on borrowing funds for operations. Darden Restaurants has a current ratio of 0.63, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Darden Restaurants until it has trouble settling it off, either with new capital or with free cash flow. So, Darden Restaurants' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Darden Restaurants sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Darden to invest in growth at high rates of return. When we think about Darden Restaurants' use of debt, we should always consider it together with cash and equity.
Over 93.0% of Darden Restaurants shares are held by institutions such as insurance companies
Latest headline from www.nasdaq.com: Wendys Banks on Unit Expansion Efforts, Costs High - Nasdaq

Darden Restaurants current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Darden analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Darden analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price137.60
Target Median Price136.00
Target High Price155.00
Recommendation Mean2.10
Number Of Analyst Opinions24
Target Low Price122.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Darden Restaurants Returns Distribution Density

The distribution of Darden Restaurants' historical returns is an attempt to chart the uncertainty of Darden Restaurants' future price movements. The chart of the probability distribution of Darden Restaurants stock daily returns describes the distribution of returns around its average expected value. We use Darden Restaurants price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Darden Restaurants returns is essential to provide solid investment advice for Darden Restaurants.
Mean Return0.19Value At Risk-3.09
Potential Upside3.93Standard Deviation2.08
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Darden Restaurants historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Darden Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Darden Restaurants is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Darden Restaurants backward and forwards among themselves. Darden Restaurants' institutional investor refers to the entity that pools money to purchase Darden Restaurants' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Capital International InvestorsCommon Shares15.8 M1.8 B
Capital World InvestorsCommon Shares15.6 M1.8 B
Vanguard Group IncCommon Shares14.3 M1.6 B
Blackrock IncCommon Shares8.3 M941.8 M
State Street CorpCommon SharesM564.9 M
Wellington Management Group LlpCommon Shares2.6 M292.3 M
Geode Capital Management LlcCommon Shares2.4 M276.1 M
Note, although Darden Restaurants' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Darden Restaurants Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Darden Restaurants or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Darden Restaurants' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Darden stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.25
β
Beta against DOW1.19
σ
Overall volatility
2.09
Ir
Information ratio 0.12

Darden Restaurants Volatility Alert

Darden Restaurants has relatively low volatility with skewness of 0.25 and kurtosis of 0.43. However, we advise all investors to independently investigate Darden Restaurants to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Darden Restaurants' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Darden Restaurants' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Darden Restaurants Fundamentals Vs Peers

Comparing Darden Restaurants' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Darden Restaurants' direct or indirect competition across all of the common fundamentals between Darden Restaurants and the related equities. This way, we can detect undervalued stocks with similar characteristics as Darden Restaurants or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Darden Restaurants' fundamental indicators could also be used in its relative valuation, which is a method of valuing Darden Restaurants by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Darden Restaurants to competition
FundamentalsDarden RestaurantsPeer Average
Return On Equity38.10 %(0.31) %
Return On Asset6.97 %(0.14) %
Profit Margin9.89 %(1.27) %
Operating Margin15.67 %(5.51) %
Current Valuation20.92 B16.62 B
Shares Outstanding129.78 M571.82 M
Shares Owned by Insiders0.43 %10.09 %
Shares Owned by Institutions92.56 %39.21 %
Number of Shares Shorted4.83 M4.71 M
Price to Earning17.00 X28.72 X
Price to Book6.42 X9.51 X
Price to Sales1.70 X11.42 X
Revenue9.63 B9.43 B
Gross Profit2 B27.38 B
EBITDA1.51 B3.9 B
Net Income954.7 M570.98 M
Cash and Equivalents420.6 M2.7 B
Cash per Share3.39 X5.01 X
Total Debt5.91 B5.32 B
Debt to Equity2.69 %48.70 %
Current Ratio0.64 X2.16 X
Book Value Per Share19.68 X1.93 K
Cash Flow from Operations1.26 B971.22 M
Short Ratio3.07 X4.00 X
Earnings Per Share(1.70) X3.12 X
Price to Earnings To Growth1.87 X4.89 X
Number of Employees178.96 K18.84 K
Beta1.31-0.15
Market Capitalization16.39 B19.03 B
Total Asset4.58 B29.47 B
Retained Earnings1.14 B9.33 B
Working Capital(366.8 M)1.48 B
Current Asset820.3 M9.34 B
   Acquisition by Juliana Chugg of 1219 shares of Darden Restaurants subject to Rule 16b-3 [view details]

Darden Restaurants Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Darden . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Darden Restaurants Buy or Sell Advice

When is the right time to buy or sell Darden Restaurants? Buying financial instruments such as Darden Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Darden Restaurants in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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An experimental equal-weighted index theme of selected equities generated based on Macroaxis rating and scoring system. The Macroaxis Index theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Macroaxis Index Theme or any other thematic opportunities.
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Continue to Darden Restaurants Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Complementary Tools for analysis

When running Darden Restaurants price analysis, check to measure Darden Restaurants' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Darden Restaurants is operating at the current time. Most of Darden Restaurants' value examination focuses on studying past and present price action to predict the probability of Darden Restaurants' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Darden Restaurants' price. Additionally, you may evaluate how the addition of Darden Restaurants to your portfolios can decrease your overall portfolio volatility.
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Is Darden Restaurants' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Darden Restaurants. If investors know Darden will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Darden Restaurants listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Darden Restaurants is measured differently than its book value, which is the value of Darden that is recorded on the company's balance sheet. Investors also form their own opinion of Darden Restaurants' value that differs from its market value or its book value, called intrinsic value, which is Darden Restaurants' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Darden Restaurants' market value can be influenced by many factors that don't directly affect Darden Restaurants' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Darden Restaurants' value and its price as these two are different measures arrived at by different means. Investors typically determine Darden Restaurants value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Darden Restaurants' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.