Restaurant Stock Slips Away From Highs Before Earnings

The company will report earnings before the open this Thursday

Deputy Editor
Sep 18, 2023 at 11:17 AM
facebook X logo linkedin


Olive Garden parent Darden Restaurants Inc (NYSE:DRI) is gearing up for this week's earnings report, scheduled before the open on Thursday, Sept. 21. The stock has closed lower following its last four reports, including a 4.4% drop in September 2022. In the past two years, DRI has averaged a next-day swing of 2.8%, regardless of direction. This time around the options pits are pricing in a post-earnings move of 4.7%. 

On the charts, DRI has been on a decline since its July 21, record high of $173.06, with pressure at its descending 20-day moving average. The security down 0.7% at $149.08 today, and up 7.9% since the start of the year. 

The brokerage bunch leans bullish on DRI. Of the 22 analysts in coverage, 16 carry a "buy" or better rating on Darden Restaurants stock, with six a tepid "hold," and no "sell" ratings in sight. The 12-month consensus price target of $172.92 is a 15.7% premium to current levels. 

The security is seeing well-priced premiums at the moment, too, per its Schaeffer's Volatility Index (SVI) of 24%, which ranks in the 25th percentile of its annual range. This means options traders are pricing in relatively low volatility expectations at the moment. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI