Darden Restaurants Stock Could Near Annual Highs

Shares could bounce from a disappointing post-earnings reaction

Deputy Editor
Dec 20, 2022 at 12:29 PM
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Olive Garden parent Darden Restaurants, Inc. (NYSE:DRI) reported better-than-expected fiscal-second quarter earnings and revenue on Dec. 16. Despite this, the shares fell to a roughly two-month low of $131.90, and slipped further below their year-to-date breakeven level. However, Darden Restaurants stock was last seen up 0.8% at $139.61, putting it on track to turn in its first winning session in five. Plus, DRI has come within striking distance of a historically bullish trendline.

Per a study from Schaeffer’s Senior Quantitative Analyst Rocky White, the security is within one standard deviation of its 80-day moving average for the sixth time in the last three years. One month after 67% of these signals, the equity was higher, averaging a 10.7% gain. A move of this magnitude from DRI's current perch would place shares at $154.54, just shy of their Jan. 5 annual high of $155.25.

DRI Chart December 202022

While the majority of analysts are already bullish, there's still some room for pessimism to unwind. Specifically, 18 firms rate DRI a "buy" or better, while four still call it a tepid "hold."


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