Yahoo Finance Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Darden Restaurants (DRI)
Founded in 1968 and based in Orlando, FL, Darden Restaurants is one of the largest casual dining restaurant operators worldwide. The company has operations in the United States and Canada with more than 1,700 restaurants.
DRI is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 19X for the current fiscal year compared to the Retail - Restaurants industry's P/E of 22X. Additionally, DRI has a PEG Ratio of 1.9 and a Price/Cash Flow ratio of 13.9X. Value investors should also note DRI's Price/Sales ratio of 1.8X.
Many value investors pay close attention to a company's earnings as well. For DRI, 13 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.13 to $7.80 per share for 2023. Per share DRI boasts an average earnings surprise of 0.4%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding DRI to their portfolios.
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Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
