DRI Stock Analysis: Buy, Sell, or Hold?
DRI - Darden Restaurants, Inc.
$196.69
-7.56 (-3.70%)
▼
5d:
-3.21%
30d:
-3.41%
90d:
+2.24%
BUY
MODERATE Confidence
Analysis Updated: Jul 13, 2026 12:00 AM ET
Earnings: Sep 17, 2026
Smart Money Accumulation
None View Scanner →
Strength: 5.6/10
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: DRI shows positive signals but monitor for confirmation. Market pricing in 0.8% decline. Moderate conviction.
💡 BUY OPPORTUNITY: DRI shows positive signals but monitor for confirmation. Market pricing in 0.8% decline. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$264.49
Based on 5.6% avg growth
INTRINSIC VALUE TODAY
$164.23
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 17.7x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DRI is currently trading at $196.69, which is considered oversold relative to its 30-day fair value range of $199.92 to $211.56. The stock's valuation (Forward PE: 17.3) is in line with its historical norms (17.7). Remarkably, the market is currently pricing in an annual earnings decline of 0.8% over the next few years. This pessimistic expectation contrasts with the company's recent 36.0% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, DRI is in a downtrend. The price is currently testing key support at $191.72. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 3.7% recently.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $228.25 (+16.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DRI is in a downtrend. The price is currently testing key support at $191.72. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 3.7% recently.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $228.25 (+16.0%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
OVERSOLD
Historical Trading Range
$199.92 -
$211.56
Company Quality Score
58/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
72.4%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-3.7%)
- BULLISH: Trading below Wall St target ($228.25)
Trading Range Analysis
30-Day Trading Range
$199.92 -
$211.56
Current vs Trading Range
OVERSOLD
Support & Resistance Levels
Support Level
$191.73
Resistance Level
$210.43
Current Trend
Downtrend
Technical data as of
Jun 9, 2026
Fundamental Context
Forward P/E (Next Year Est.)
17.28
Wall Street Target
$228.25
(+16.0%)
Revenue Growth (YoY)
13.7%
Earnings Growth (YoY)
36.0%
Profit Margin
9.1%
Valuation Discount vs History
-0.8% cheaper
PE vs Historical
17.3 vs 17.7
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.8%
(market-implied from PE analysis)
1-Year Target
$195.12
(-1%)
2-Year Target
$193.56
(-2%)
3-Year Target
$192.01
(-2%)
3-Yr Target (if PE normalizes)
(PE: 17→18)
$196.68
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 21.8, Growth: 7.2%)
$305.27
(+55%)
Base:
(SPY PE: 17.3, Growth: 7.2%)
$242.19
(+23%)
Bear:
(PE: 14.7, Growth: 7.2%)
$205.86
(+5%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (20x PE), but valuation improves significantly next year (17x PE) as earnings recover.
Trailing PE: 19.56 | Current EPS (TTM): $10.44
Bull Case
$244.96
(+25%)
Analyst growth 9.0%, PE expands to 21.5
Base Case
$222.69
(+13%)
Market implied 9.0%, PE stable at 19.6
Bear Case
$138.89
(-29%)
Severe decline -20.0%, PE contracts to 16.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 17.3 to 17.7
Stabilization Target:
$201.47
(+2.4%)
PE Expansion Potential:
+2.4%
Share & Embed Analysis
Last updated: July 13, 2026 7:29 PM ET
Data refreshes hourly during market hours. Next update: 8:29 PM
Data refreshes hourly during market hours. Next update: 8:29 PM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
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Technical Signals Check
Is DRI showing a specific setup today?
Insider Activity (6 Months)
2
Buys
5
Sells
Net
INSIDERS SELLING
Recent Transactions
Douglas J Milanes
SELL
3620 shares
2026-04-17
Lindsay L Koren
SELL
300 shares
2026-04-07
Ro Khanna
SELL
2026-03-30
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