Darden Restaurants Stock (NYSE:DRI), Trade Ideas

Darden Restaurants

Darden Restaurants is the largest restaurant operator in the U.S. full-service space, with consolidated revenue of $10.5 billion in fiscal 2023 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 10 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, and The Capital Burger. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2023, the company operated 1,914 restaurants in the U.S.

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Is Now A Good Time To Buy Four Corners Property Trust?

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<p>When investors consider acquiring a stock, making an informed decision requires assessing numerous variables, including fundamentals, historical performance, dividend growth and recent events.</p>
<p>Investors also need to determine whether now is an opportune moment to acquire a particular stock. How do analysts perceive the company&#8217;s prospects? What was the outcome of the latest quarterly earnings report? Has the stock pulled back off highs to more reasonable levels?</p>
<p>Take a look at one real estate investment trust (REIT) that has been steadily growing its revenue and earnings while still paying a hefty dividend yield.<strong>&nbsp;&nbsp;</strong></p>
<p><strong>Four Corners Property Trust</strong> <strong>Inc.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCPT#NYSE">FCPT</a>) is a Mill Valley, California-based diversified REIT, focused on owning net-leased restaurants, medical and dental services, automotive services and other retail properties in the U.S. Sun Belt. Four Corners has a market cap of $2.08 billion. The 52-week range is $20.51 to $27.60, and the average daily volume is roughly 1.3 million shares.&nbsp;</p>
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<p>Four Corners was created in November 2015 with 418 restaurants spun out from <strong>Darden Restaurants Inc.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>). Darden board member William Lenehan, who has a track record of success in real estate, was named the CEO. Over time, many Darden properties were sold off, but Olive Garden and LongHorn Steakhouse restaurants still make up about 47% of Four Corners' total rents. In 2023, Four Corners disposed of several Red Lobster properties that were not performing well.</p>
<p>Over the past seven years, Four Corners has steadily acquired more diversified properties. Its portfolio now includes 1,111 long-term leased properties with 148 brands across 47 states. Almost 20% of its properties are medical, retail and auto service tenants. It continues to acquire non-Darden restaurants, such as Chili's Grill &amp; Bar, Buffalo Wild Wings, Cheddar's Scratch Kitchen, KFC, Taco Bell and Burger King.</p>
<p>At the end of 2023, Four Corners had an occupancy rate of 99.8% with a weighted annual lease term (WALT) of eight years. Its portfolio is mostly located in suburban, fast-growing areas. Less than 6.4% of its rental income matures before 2027.&nbsp;</p>
<p>Four Corners uses a revolving credit and term loan agreement among several lenders. In March, it used the accordion feature of its revolving credit agreement to enter into a new loan term of $85 million, which matures in March 2027. This includes a one-time, 12-month extension that can be exercised before maturity.&nbsp;&nbsp;</p>
<p>On Feb. 14, Four Corners gave its investors a nice Valentine's Day present with positive fourth-quarter operating results. Funds from operations (FFO) of $0.41 met analyst estimates and beat the fourth-quarter 2022 FFO of $0.40. Its revenue of $65.14 million topped estimates of $64.83 million and was 13.6% above fourth-quarter 2022 revenue of $57.36 million. First quarter 2024 operating results will be announced after the market closes on May 1.&nbsp;</p>
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<p>Four Corners pays a quarterly dividend of $0.345, and the annualized $1.38 per share dividend now yields 6.06%. Since April 2019 there have been five increases, and the dividend has grown by 20.6% with no cuts or suspensions.&nbsp;</p>
<p>The payout ratio of 83% is slightly higher than optimal, but FFO has increased by a penny over the past two quarters, suggesting that the payout ratio should continue to decline over future quarters. With a 6% dividend rate, the dividend will likely remain stable for a while longer.&nbsp;</p>
<p>In March there was one change to the management structure. Chief Financial Officer Gerry Morgan announced his retirement effective May 3, 2024. Patrick Wernig, managing director of acquisitions, will succeed Morgan as CFO. Wernig has been with Four Corners since 2016.&nbsp;</p>
<p>On April 11, Four Corners Property Trust acquired Banfield Pet Hospital in Iowa for $2.4 million. The facility is under a long-term net lease with approximately 10 years remaining on the term. As is typical of Four Corners' purchase philosophy, the transaction was priced at a 7.3% cap rate on rent on closing day and exclusive of closing costs.</p>
<p>Although rising interest rates have made acquisitions difficult for many REITs over the past two years, Four Corners has continued to be aggressive, yet selective, in its purchases. With its emphasis on diversification into recession-resistant tenants, Four Corners has successfully lowered the risk of rent defaults. It has specific criteria for acquisitions. For example, it will only consider 10- to 20-year lease terms on new leases and greater than five years for existing ones. It will only take tenants with national brands and strong credit operators. Cap rates from new acquisitions continue to be around 7%.&nbsp;&nbsp;</p>
<p>With a pullback from $25.46 in January to a recent close of $22.74, investors should consider Four Corners Property Trust. The business model continues to succeed, and the dividend yield has reached enticing levels. Management's acquisition philosophy is viable. While Four Corners is primarily an income stock, the price to funds from operations ratio of 13.81 makes appreciation likely, especially if the Federal Reserve cuts interest rates. Of six analysts covering this REIT, two have Strong Buys, one has a Buy and three have Hold ratings.</p>
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<p>TD Cowen  analyst Andrew Charles   reiterates Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Buy and maintains $190 price target.</p>


Reiteration

Analyst Ratings

TD Cowen Reiterates Buy on Darden Restaurants, Maintains $190 Price Target

<p>During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a <a href="https://www.benzinga.com/yield-investments">high dividend payout</a>.</p>
<p>Benzinga readers can review the latest analyst takes on their favorite stocks by visiting our <a href="https://www.benzinga.com/analyst-stock-ratings">Analyst Stock Ratings</a> page. Traders can sort through Benzinga&#8217;s extensive database of analyst ratings, including <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie">by analyst accuracy</a>.</p>
<p>Below are the ratings of the most accurate analysts for three high-yielding stocks in the consumer discretionary sector.</p>
<h3 class="wp-block-heading" id="h-darden-restaurants-inc-nyse-dri"><strong>Darden Restaurants, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>)</strong></h3>
<ul>
<li><strong>Dividend Yield:</strong> 3.44%</li>
<li><strong>TD Cowen</strong> analyst Andrew Charles reiterated a Buy rating with a price target of $190 on April 12, 2024. This analyst has an accuracy rate of 70%.</li>
<li><strong>Truist Securities</strong> analyst Jake Bartlett maintained a Buy rating and cut the price target from $190 to $185 on March 27, 2024. This analyst has an accuracy rate of 79%.</li>
<li><strong>Recent News:</strong> On March 21, Darden Restaurants reported mixed results for its third quarter.</li>
</ul>
<h3 class="wp-block-heading" id="h-tapestry-inc-nyse-tpr"><strong>Tapestry, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPR#NYSE">TPR</a>)</strong></h3>
<ul>
<li><strong>Dividend Yield:</strong> 3.46%</li>
<li><strong>Wells Fargo</strong> analyst Ike Boruchow maintained an Overweight rating and boosted the price target from $50 to $60 on Feb. 2, 2024. This analyst has an accuracy rate of 71%.</li>
<li><strong>Raymond James</strong> analyst Rick Patel maintained an Outperform rating and raised the price target from $40 to $44 on Jan. 30, 2024. This analyst has an accuracy rate of 81%.</li>
<li><strong>Recent News:</strong> According to a recent report, the FTC is preparing to sue to block the company&#8217;s takeover of Capri.</li>
</ul>
<h3 class="wp-block-heading" id="h-kontoor-brands-inc-nyse-ktb"><strong>Kontoor Brands, Inc.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KTB#NYSE">KTB</a>)</h3>
<ul>
<li><strong>Dividend Yield:</strong> 3.61%</li>
<li><strong>Barclays</strong> analyst Adrienne Yih maintained an Overweight rating and cut the price target from $75 to $65 on Feb. 29, 2024. This analyst has an accuracy rate of 69%.</li>
<li><strong>UBS</strong> analyst Jay Sole maintained a Buy rating and boosted the price target from $83 to $85 on Feb. 16, 2024. This analyst has an accuracy rate of 72%.</li>
<li><strong>Recent News:</strong> Kontoor Brands announced plans to release its first quarter 2024 financial results on May 2, 2024.</li>
</ul>

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These 3 Consumer Stocks Delivering High-Dividend Yields Are Recommended By Wall Street's Most Accurate Analysts

<p>In the latest quarter, 20 analysts provided ratings for Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>), showcasing a mix of bullish and bearish perspectives.</p>
<p>The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.</p>
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;"><strong>Bullish</strong></th>
<th style="text-align: right;"><strong>Somewhat Bullish</strong></th>
<th style="text-align: right;"><strong>Indifferent</strong></th>
<th style="text-align: right;"><strong>Somewhat Bearish</strong></th>
<th style="text-align: right;"><strong>Bearish</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Total Ratings</strong></td>
<td style="text-align: right;">9</td>
<td style="text-align: right;">9</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>Last 30D</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>1M Ago</strong></td>
<td style="text-align: right;">8</td>
<td style="text-align: right;">8</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>2M Ago</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>3M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
<p>Analysts have set 12-month price targets for Darden Restaurants, revealing an average target of $185.6, a high estimate of $200.00, and a low estimate of $165.00. Witnessing a positive shift, the current average has risen by 1.24% from the previous average price target of $183.33.</p>
<p><img src="https://www.benzinga.com/files/images/story/2024/1712923280_0.png" alt="price target chart" /></p>
<h2>Investigating Analyst Ratings: An Elaborate Study</h2>
<p>The perception of Darden Restaurants by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.</p>
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Jim Salera</td>
<td>Stephens &amp; Co.</td>
<td>Announces</td>
<td>Equal-Weight</td>
<td>$170.00</td>
<td>-</td>
</tr>
<tr>
<td>Andrew Charles</td>
<td>TD Cowen</td>
<td>Maintains</td>
<td>Buy</td>
<td>$190.00</td>
<td>-</td>
</tr>
<tr>
<td>Andrew Charles</td>
<td>TD Cowen</td>
<td>Maintains</td>
<td>Buy</td>
<td>$190.00</td>
<td>-</td>
</tr>
<tr>
<td>Jake Bartlett</td>
<td>Truist Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$185.00</td>
<td>$190.00</td>
</tr>
<tr>
<td>Jake Bartlett</td>
<td>Truist Securities</td>
<td>Maintains</td>
<td>Buy</td>
<td>$190.00</td>
<td>-</td>
</tr>
<tr>
<td>Jon Tower</td>
<td>Citigroup</td>
<td>Lowers</td>
<td>Buy</td>
<td>$192.00</td>
<td>$200.00</td>
</tr>
<tr>
<td>John Ivankoe</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$176.00</td>
<td>$180.00</td>
</tr>
<tr>
<td>Brian Nowak</td>
<td>Morgan Stanley</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$180.00</td>
<td>$184.00</td>
</tr>
<tr>
<td>Nick Setyan</td>
<td>Wedbush</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$181.00</td>
<td>$187.00</td>
</tr>
<tr>
<td>Brian Bittner</td>
<td>Oppenheimer</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$182.00</td>
<td>$186.00</td>
</tr>
<tr>
<td>Andrew Charles</td>
<td>TD Cowen</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$190.00</td>
<td>-</td>
</tr>
<tr>
<td>Greg Francfort</td>
<td>Guggenheim</td>
<td>Raises</td>
<td>Buy</td>
<td>$190.00</td>
<td>$180.00</td>
</tr>
<tr>
<td>Chris O'Cull</td>
<td>Stifel</td>
<td>Raises</td>
<td>Buy</td>
<td>$190.00</td>
<td>$185.00</td>
</tr>
<tr>
<td>John Ivankoe</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$180.00</td>
<td>$170.00</td>
</tr>
<tr>
<td>Sara Senatore</td>
<td>B of A Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$198.00</td>
<td>$193.00</td>
</tr>
<tr>
<td>Nick Setyan</td>
<td>Wedbush</td>
<td>Raises</td>
<td>Outperform</td>
<td>$187.00</td>
<td>$177.00</td>
</tr>
<tr>
<td>Brian Bittner</td>
<td>Oppenheimer</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$186.00</td>
<td>$186.00</td>
</tr>
<tr>
<td>Jon Tower</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Buy</td>
<td>$200.00</td>
<td>$192.00</td>
</tr>
<tr>
<td>Andrew Strelzik</td>
<td>BMO Capital</td>
<td>Raises</td>
<td>Market Perform</td>
<td>$165.00</td>
<td>$160.00</td>
</tr>
<tr>
<td>Andrew Charles</td>
<td>TD Cowen</td>
<td>Raises</td>
<td>Outperform</td>
<td>$190.00</td>
<td>$180.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li><strong>Action Taken:</strong> In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Darden Restaurants. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li><strong>Rating:</strong> Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Darden Restaurants compared to the broader market.</li>
<li><strong>Price Targets:</strong> Analysts explore the dynamics of price targets, providing estimates for the future value of Darden Restaurants's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
<p>To gain a panoramic view of Darden Restaurants's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.</p>
<p><a href="https://www.benzinga.com/quote/DRI/analyst-ratings?utm_source=Benzinga Insights"><strong>Stay up to date on Darden Restaurants analyst ratings.</strong></a></p>
<h2>Get to Know Darden Restaurants Better</h2>
<p>Darden Restaurants is the largest restaurant operator in the U.S. full-service space, with consolidated revenue of $10.5 billion in fiscal 2023 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 10 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, and The Capital Burger. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2023, the company operated 1,914 restaurants in the U.S.</p>
<h3>Understanding the Numbers: Darden Restaurants's Finances</h3>
<p><strong>Market Capitalization Analysis:</strong> The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.</p>
<p><strong>Revenue Growth:</strong> Darden Restaurants displayed positive results in 3 months. As of 29 February, 2024, the company achieved a solid revenue growth rate of approximately <strong>6.77%</strong>. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.</p>
<p><strong>Net Margin:</strong> Darden Restaurants's net margin excels beyond industry benchmarks, reaching <strong>10.52%</strong>. This signifies efficient cost management and strong financial health.</p>
<p><strong>Return on Equity (ROE):</strong> Darden Restaurants's ROE stands out, surpassing industry averages. With an impressive ROE of <strong>14.83%</strong>, the company demonstrates effective use of equity capital and strong financial performance.</p>
<p><strong>Return on Assets (ROA):</strong> The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of <strong>2.76%,</strong> the company showcases effective utilization of assets.</p>
<p><strong>Debt Management:</strong> Darden Restaurants's debt-to-equity ratio is below the industry average. With a ratio of <b>2.43</b>, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.</p>
<h2>Understanding the Relevance of Analyst Ratings</h2>
<p>Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.</p>
<p>Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.</p>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


Analyst Ratings For Darden Restaurants

<p>Stephens &amp; Co.  analyst Jim Salera   reinstates Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Equal-Weight and announces $170 price target.</p>


Initiation

Stephens & Co. Reinstates Equal-Weight on Darden Restaurants, Announces $170 Price Target

<p>The Nasdaq 100 closed higher by around 70 points on Tuesday. Investors, meanwhile, focused on some notable insider trades.</p>
<p>When insiders sell shares, it could be a preplanned sale, or could indicate their concern in the company&rsquo;s prospects or that they view the stock as being overpriced. Insider sales should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a selling decision.</p>
<p>Below is a look at a few recent notable insider sales. For more, check out <a href="https://www.benzinga.com/sec/insider-trades/"><em> Benzinga&#39;s insider transactions </em></a> platform.</p>
<h3><strong>Guess?</strong></h3>
<ul>
<li><strong>The Trade:</strong> <strong> Guess?, Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ges#NYSE">GES</a>) CEO and Director Carlos Alberini<a href="https://www.benzinga.com/sec/insider-trades/"><em> sold a total of 350,000 shares </em></a> at an average price of $30.40. The insider received around $10.64 million from selling those shares.</li>
<li><strong>What&rsquo;s Happening:</strong> On April 8, B. Riley Securities analyst Jeff Lick reiterated Guess with a Buy rating and raised the price target from $33 to $37.</li>
<li><strong>What Guess? Does:</strong> Guess? Inc designs, markets distributes, and licenses contemporary apparel and accessories that reflect European fashion sensibilities and American Lifestyle under brands including Guess, Marciano, and G by Guess.</li>
</ul>
<p><em>Have a look at our <a href="https://www.benzinga.com/premarket/"> premarket coverage here </a> </em></p>
<h3><strong>Broadcom</strong></h3>
<ul>
<li><strong>The Trade:</strong> <strong> Broadcom Inc. </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/avgo#NASDAQ">AVGO</a>) CFO and Chief Accounting Officer Kirsten M. Spears <a href="https://www.benzinga.com/sec/insider-trades/"><em> sold a total of 3,000 shares </em></a> at an average price of $1,343.15. The insider received around $4.03 million from selling those shares.</li>
<li><strong>What&rsquo;s Happening:</strong> Broadcom and Alphabet&rsquo;s Google Cloud have announced the expansion of their partnership to optimize Broadcom&rsquo;s VMware workloads for Google Cloud.</li>
<li><strong>What Broadcom Does:</strong> Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue.</li>
</ul>
<h3><strong>NVIDIA </strong></h3>
<ul>
<li><strong>The Trade:</strong> <strong> NVIDIA Corporation </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) Director Mark A Stevens <a href="https://www.benzinga.com/sec/insider-trades/"><em> sold a total of 22,700 shares </em></a> at an average price of $879.97. The insider received around $19.98 million from selling those shares.</li>
<li><strong>What&rsquo;s Happening:</strong> Keybanc analyst John Vinh maintained NVIDIA with an Overweight and raised the price target from $1,100 to $1,200.</li>
<li><strong>What NVIDIA Does:</strong> Nvidia is a leading developer of graphics processing units. Traditionally, GPUs were used to enhance the experience on computing platforms, most notably in gaming applications on PCs.</li>
</ul>
<h3><strong>Darden Restaurants </strong></h3>
<ul>
<li><strong>The Trade:</strong> <strong> Darden Restaurants, Inc. </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dri#NYSE">DRI</a>) Director William S Simon <a href="https://www.benzinga.com/sec/insider-trades/"><em> sold a total of 1,219 shares </em></a> at an average price of $158.21. The insider received around $192,858 from selling those shares.</li>
<li><strong>What&rsquo;s Happening:</strong> On March 21, Darden Restaurants reported mixed results for its third quarter.</li>
<li><strong>What Darden Restaurants Does:</strong> Darden Restaurants is the largest restaurant operator in the U.S. full-service space, with consolidated revenue of $10.5 billion in fiscal 2023 resulting in 3%-4% full-service market share (per NRA data and our calculations).</li>
</ul>
<p>&nbsp;</p>
<p>Check This Out: <a href="https://www.benzinga.com/news/earnings/24/04/38176318/investor-optimism-decreases-slightly-inflation-data-in-focus"><em> Investor Optimism Decreases Slightly; Inflation Data In Focus </em></a></p>


<p>Analysts' ratings for Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) over the last quarter vary from bullish to bearish, as provided by 19 analysts.</p>
<p>In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.</p>
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;"><strong>Bullish</strong></th>
<th style="text-align: right;"><strong>Somewhat Bullish</strong></th>
<th style="text-align: right;"><strong>Indifferent</strong></th>
<th style="text-align: right;"><strong>Somewhat Bearish</strong></th>
<th style="text-align: right;"><strong>Bearish</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Total Ratings</strong></td>
<td style="text-align: right;">7</td>
<td style="text-align: right;">11</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>Last 30D</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>1M Ago</strong></td>
<td style="text-align: right;">6</td>
<td style="text-align: right;">9</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>2M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>3M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
<p>Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $186.05, with a high estimate of $200.00 and a low estimate of $165.00. This upward trend is evident, with the current average reflecting a 1.53% increase from the previous average price target of $183.24.</p>
<p><img src="https://www.benzinga.com/files/images/story/2024/1711566034_0.png" alt="price target chart" /></p>
<h2>Diving into Analyst Ratings: An In-Depth Exploration</h2>
<p>The standing of Darden Restaurants among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.</p>
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Jake Bartlett</td>
<td>Truist Securities</td>
<td>Lowers</td>
<td>Buy</td>
<td>$185.00</td>
<td>$190.00</td>
</tr>
<tr>
<td>Jake Bartlett</td>
<td>Truist Securities</td>
<td>Maintains</td>
<td>Buy</td>
<td>$190.00</td>
<td>-</td>
</tr>
<tr>
<td>Jon Tower</td>
<td>Citigroup</td>
<td>Lowers</td>
<td>Buy</td>
<td>$192.00</td>
<td>$200.00</td>
</tr>
<tr>
<td>John Ivankoe</td>
<td>JP Morgan</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$176.00</td>
<td>$180.00</td>
</tr>
<tr>
<td>Brian Nowak</td>
<td>Morgan Stanley</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$180.00</td>
<td>$184.00</td>
</tr>
<tr>
<td>Nick Setyan</td>
<td>Wedbush</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$181.00</td>
<td>$187.00</td>
</tr>
<tr>
<td>Brian Bittner</td>
<td>Oppenheimer</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$182.00</td>
<td>$186.00</td>
</tr>
<tr>
<td>Andrew Charles</td>
<td>TD Cowen</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$190.00</td>
<td>-</td>
</tr>
<tr>
<td>Greg Francfort</td>
<td>Guggenheim</td>
<td>Raises</td>
<td>Buy</td>
<td>$190.00</td>
<td>$180.00</td>
</tr>
<tr>
<td>Chris O'Cull</td>
<td>Stifel</td>
<td>Raises</td>
<td>Buy</td>
<td>$190.00</td>
<td>$185.00</td>
</tr>
<tr>
<td>John Ivankoe</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$180.00</td>
<td>$170.00</td>
</tr>
<tr>
<td>Sara Senatore</td>
<td>B of A Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$198.00</td>
<td>$193.00</td>
</tr>
<tr>
<td>Nick Setyan</td>
<td>Wedbush</td>
<td>Raises</td>
<td>Outperform</td>
<td>$187.00</td>
<td>$177.00</td>
</tr>
<tr>
<td>Brian Bittner</td>
<td>Oppenheimer</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$186.00</td>
<td>$186.00</td>
</tr>
<tr>
<td>Jon Tower</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Buy</td>
<td>$200.00</td>
<td>$192.00</td>
</tr>
<tr>
<td>Andrew Strelzik</td>
<td>BMO Capital</td>
<td>Raises</td>
<td>Market Perform</td>
<td>$165.00</td>
<td>$160.00</td>
</tr>
<tr>
<td>Andrew Charles</td>
<td>TD Cowen</td>
<td>Raises</td>
<td>Outperform</td>
<td>$190.00</td>
<td>$180.00</td>
</tr>
<tr>
<td>Brian Bittner</td>
<td>Oppenheimer</td>
<td>Raises</td>
<td>Outperform</td>
<td>$186.00</td>
<td>$185.00</td>
</tr>
<tr>
<td>Jeffrey Bernstein</td>
<td>Barclays</td>
<td>Raises</td>
<td>Overweight</td>
<td>$187.00</td>
<td>$180.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li><strong>Action Taken:</strong> Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Darden Restaurants. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li><strong>Rating:</strong> Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Darden Restaurants compared to the broader market.</li>
<li><strong>Price Targets:</strong> Analysts explore the dynamics of price targets, providing estimates for the future value of Darden Restaurants's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
<p>Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Darden Restaurants's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.</p>
<p><a href="https://www.benzinga.com/quote/DRI/analyst-ratings?utm_source=Benzinga Insights"><strong>Stay up to date on Darden Restaurants analyst ratings.</strong></a></p>
<h2>Get to Know Darden Restaurants Better</h2>
<p>Darden Restaurants is the largest restaurant operator in the U.S. full-service space, with consolidated revenue of $10.5 billion in fiscal 2023 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 10 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, and The Capital Burger. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2023, the company operated 1,914 restaurants in the U.S.</p>
<h3>Key Indicators: Darden Restaurants's Financial Health</h3>
<p><strong>Market Capitalization Analysis:</strong> The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.</p>
<p><strong>Revenue Growth:</strong> Darden Restaurants's remarkable performance in 3 months is evident. As of 30 November, 2023, the company achieved an impressive revenue growth rate of <strong>9.68%</strong>. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.</p>
<p><strong>Net Margin:</strong> Darden Restaurants's net margin excels beyond industry benchmarks, reaching <strong>7.78%</strong>. This signifies efficient cost management and strong financial health.</p>
<p><strong>Return on Equity (ROE):</strong> Darden Restaurants's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive <strong>10.13%</strong> ROE, the company effectively utilizes shareholder equity capital.</p>
<p><strong>Return on Assets (ROA):</strong> Darden Restaurants's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of <strong>1.88%,</strong> the company showcases efficient use of assets and strong financial health.</p>
<p><strong>Debt Management:</strong> With a high debt-to-equity ratio of <strong>2.71</strong>, Darden Restaurants faces challenges in effectively managing its debt levels, indicating potential financial strain.</p>
<h2>The Basics of Analyst Ratings</h2>
<p>Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.</p>
<p>Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.</p>
<p>Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.</p>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


Beyond The Numbers: 19 Analysts Discuss Darden Restaurants Stock

<p>Truist Securities  analyst Jake Bartlett   maintains Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Buy and lowers the price target from $190 to $185.</p>


Truist Securities Maintains Buy on Darden Restaurants, Lowers Price Target to $185

<p><strong>Darden Restaurants Inc </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dri#NYSE">DRI</a>) reported mixed results for its <a href="https://www.benzinga.com/news/earnings/24/03/37869151/why-longhorn-steakhouse-owner-darden-restaurants-shares-taking-a-hit-today">third quarter on Thursday</a>.</p>
<p>Darden Restaurants reported third-quarter FY24 sales growth of 6.8% year-on-year to $2.975 billion, missing the analyst consensus estimate of $3.025 billion. Darden clocked an operating margin of 13%, and the operating income rose 10.7% Y/Y to $387.4 million. Adjusted EPS of $2.62 was in line with the consensus estimate, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.</p>
<p>Darden currently sees FY24 adjusted EPS from continuing operations of $8.80-$8.90 (estimate $8.86), excluding approximately $0.35, after-tax, of Ruth&rsquo;s Chris transaction and integration related costs. The company previously expected adjusted EPS from continuing operations of $8.75-$8.90, excluding the $0.37 costs.</p>
<p>The company sees FY24 total sales of $11.4 billion (prior view $11.5 billion) against an estimate of $11.506 billion. Darden expects FY24 same-restaurant sales growth of 1.5%-2% (previous outlook 2.5%-3.0%).</p>
<p>Darden shares rose 0.9% to trade at $164.75 on Friday.</p>
<p>These analysts made changes to their price targets on Darden following earnings announcement.</p>
<ul>
<li><strong>Citigroup</strong> cut the price target on Darden from $200 to $192. Citigroup analyst Jon Tower maintained a Buy rating.</li>
<li><strong>JP Morgan</strong> slashed the price target on Darden from $180 to $176. JP Morgan analyst John Ivankoe maintained an Overweight rating.</li>
<li><strong>Morgan Stanley</strong> cut the price target on Darden from $184 to $180. Morgan Stanley analyst Brian Nowak maintained an Overweight rating.</li>
<li><strong>Wedbush</strong> cut the price target on Darden from $187 to $181. Wedbush analyst Nick Setyan maintained an Outperform rating.</li>
<li><strong>Oppenheimer</strong> slashed the price target on Darden from $186 to $182. Oppenheimer analyst Brian Bittner maintained an Outperform rating.</li>
</ul>
<p><em>See Also:&nbsp;<a href="https://www.benzinga.com/general/entertainment/23/04/31968108/lady-gaga-went-bankrupt-before-she-grew-her-fortune-to-150m-she-still-doesnt-care-about-the">Lady Gaga Went Bankrupt Before She Grew Her Fortune To $150M &mdash; She Still Doesn&#39;t &#39;Care About The Money&#39;</a></em></p>


Earnings

Darden Restaurants Analysts Cut Their Forecasts After Q3 Results

<p>Truist Securities  analyst Jake Bartlett   reiterates Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Buy and maintains $190 price target.</p>


Truist Securities Reiterates Buy on Darden Restaurants, Maintains $190 Price Target

<p>Citigroup  analyst Jon Tower   maintains Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Buy and lowers the price target from $200 to $192.</p>


Citigroup Maintains Buy on Darden Restaurants, Lowers Price Target to $192

<p>JP Morgan  analyst John Ivankoe   maintains Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Overweight and lowers the price target from $180 to $176.</p>


JP Morgan Maintains Overweight on Darden Restaurants, Lowers Price Target to $176

<p>Morgan Stanley  analyst Brian Nowak   maintains Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Overweight and lowers the price target from $184 to $180.</p>


Morgan Stanley Maintains Overweight on Darden Restaurants, Lowers Price Target to $180

<p>Wedbush  analyst Nick Setyan   maintains Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Outperform and lowers the price target from $187 to $181.</p>


Wedbush Maintains Outperform on Darden Restaurants, Lowers Price Target to $181

<p>Oppenheimer  analyst Brian Bittner   maintains Darden Restaurants (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) with a Outperform and lowers the price target from $186 to $182.</p>


Oppenheimer Maintains Outperform on Darden Restaurants, Lowers Price Target to $182

<p>Shares of <strong> FactSet Research Systems Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fds#NYSE">FDS</a>) fell sharply during Thursday&rsquo;s session after the company reported worse-than-expected second-quarter <a href="https://www.benzinga.com/quote/FDS/earnings">revenue and issued FY24 guidance</a>.</p>
<p>FactSet Research posted adjusted earnings of $4.22 per share, beating market estimates of $3.88 per share. The company&rsquo;s quarterly sales came in at $545.95 million, missing expectations of $546.80 million, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.</p>
<p>FactSet Research shares dipped 5.2% to $462.36 on Thursday.</p>
<p>Here are some other stocks moving in today&#39;s mid-day session.</p>
<h3><strong>Gainers</strong></h3>
<ul>
<li><strong>Yield10 Bioscience, Inc. </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/yten#NASDAQ">YTEN</a>) shares jumped 136.7% to $0.5751 after the company announced that the USDA-APHIS Biotechnology Regulatory Services determined that the Camelina sativa varieties may be planted and bred in the United States.</li>
<li><strong>Kaival Brands Innovations Group, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/kavl#NASDAQ">KAVL</a>) shares jumped 101.7% to $2.6850 after falling 11% on Wednesday.</li>
<li><strong>CuriosityStream Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/curi#NASDAQ">CURI</a>) rose 63.2% to $2.6850 after the company reported financial results for fourth quarter.</li>
<li><strong>Portage Biotech Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/prtg#NASDAQ">PRTG</a>) gained 53.7% to $0.7525.</li>
<li><strong>Lufax Holding Ltd</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lu#NYSE">LU</a>) climbed 41.3% to $4.76 following fourth-quarter results.</li>
<li><strong>Asset Entities Inc. </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/asst#NASDAQ">ASST</a>) shares climbed 37% to $0.7173 after the company announced that it entered into an agreement with Zendrop.</li>
<li><strong>Cazoo Group Ltd</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/czoo#NYSE">CZOO</a>) gained 33% to $4.6475.</li>
<li><strong>Guess?, Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ges#NYSE">GES</a>) shares rose 23.1% to $31.95 as the company reported better-than-expected fourth-quarter financial results and declared a special dividend of $2.25 per share.</li>
<li><strong>Nortech Systems Incorporated</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nsys#NASDAQ">NSYS</a>) surged 22.3% to $13.35 after the company reported fourth-quarter results.</li>
<li><strong>JOANN Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/joan#NASDAQ">JOAN</a>) gained 20.8% to $0.1631.</li>
<li><strong>Aemetis, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amtx#NASDAQ">AMTX</a>) climbed 18.4% to $4.3238 after the company announced approval by the U.S. Citizenship and Immigration Services for a $200 million of EB-5 program investment for the Riverbank sustainable aviation fuel, production plant, the dairy renewable natural gas project, the carbon sequestration project and energy efficiency upgrades to the Keyes ethanol plant.</li>
<li><strong>Canoo Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goev#NASDAQ">GOEV</a>) shares gained 16.5% to $3.9712 after gaining around 22% on Wednesday. The US Department of Commerce recently approved its Oklahoma City facility as a Foreign Trade Zone.</li>
<li><strong>NextNav Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nn#NASDAQ">NN</a>) climbed 15% to $5.55. NextNav 10% owner Joseph D Samberg acquired a total of 483,000 shares an average price of $4.52.</li>
<li><strong>Micron Technology, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mu#NASDAQ">MU</a>) climbed 14.7% to $110.37 as the company reported upbeat results for its second quarter and issued strong third-quarter guidance.</li>
<li><strong>argenx SE</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/argx#NASDAQ">ARGX</a>) gained 14.4% to $408.38 after myasthenia gravis data from competitors Chugai and Roche fell short of expectations.</li>
<li><strong>Stem, Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stem#NYSE">STEM</a>) rose 14.3% to $2.2050</li>
<li><strong>Astera Labs, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/alab#NASDAQ">ALAB</a>) rose 14.2% to $70.81 amid post-IPO volatility.</li>
<li><strong>Ocugen, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ocgn#NASDAQ">OCGN</a>) gained 9.3% to $1.3550.</li>
<li><strong>Graphjet Technology</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gti#NASDAQ">GTI</a>) rose 9.3% to $10.93.</li>
<li><strong>Anywhere Real Estate Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hous#NYSE">HOUS</a>) surged 9.1% to $5.99.</li>
<li><strong>LiveWire Group, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lvwr#NASDAQ">LVWR</a>) gained 9.1% to $7.44 after gaining 5% on Wednesday.</li>
<li><strong>Precigen, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pgen#NASDAQ">PGEN</a>) climbed 6.3% to $1.53.</li>
</ul>
<h3><strong>Losers</strong></h3>
<ul>
<li><strong>Movella Holdings Inc. </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mvla#NASDAQ">MVLA</a>) shares fell 61.4% to $0.11 after the company announced that it will voluntarily delist from the Nasdaq.</li>
<li><strong>Tourmaline Bio, Inc. </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/trml#NASDAQ">TRML</a>) fell 38.4% to $27.50. Tourmaline Bio recently posted a fourth-quarter loss of 81 cents per share.</li>
<li><strong>Critical Metals Corp.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/crml#NASDAQ">CRML</a>) fell 27.2% to $9.48.</li>
<li><strong>Apyx Medical Corporation</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/apyx#NASDAQ">APYX</a>) dipped 27% to $1.35 following soft FY24 guidance.</li>
<li><strong>Paltalk, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/palt#NASDAQ">PALT</a>) declined 23.5% to $2.1279. Paltak recently reported a year-over-year decrease in fourth-quarter revenue results.</li>
<li><strong>Spire Global, Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spir#NYSE">SPIR</a>) fell 23.3% to $13.40 after the company announced a $30 million registered direct offering of 2,142,858 shares at $14.00 per share.</li>
<li><strong>Lixiang Education Holding Co., Ltd.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lxeh#NASDAQ">LXEH</a>) dipped 22.9% to $4.00.</li>
<li><strong>Pyxis Oncology, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pyxs#NASDAQ">PYXS</a>) fell 18.4% to $4.43 following fourth-quarter results.</li>
<li><strong>Intelligent Group Limited </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/intj#NASDAQ">INTJ</a>) fell 15.7% to $2.7821. Intelligent Group priced initial public offering of 1,875,000 ordinary shares at $4 per share.</li>
<li><strong>Designer Brands Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dbi#NYSE">DBI</a>) fell 15.3% to $9.76 after the company reported fourth-quarter financial results and said its total comparable sales decreased by 7.3%.</li>
<li><strong>Ontrak, Inc. </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/otrk#NASDAQ">OTRK</a>) shares tumbled 13.9% to $0.2720 after dipping 28% on Wednesday.</li>
<li><strong>Five Below, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/five#NASDAQ">FIVE</a>) fell 12.3% to $183.38 after the company reported fourth-quarter financial</li>
<li>results.</li>
<li><strong>Direct Digital Holdings, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/drct#NASDAQ">DRCT</a>) dipped 11.1% to $28.25. Direct Digital announced that the earnings call originally scheduled for March 21, 2024 will be postponed to March 26, 2024.</li>
<li><strong>Biophytis S.A.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bpts#NASDAQ">BPTS</a>) fell 11.6% to $0.3971 after surging around 20% on Wednesday.</li>
<li><strong>Abits Group Inc. </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/abts#NASDAQ">ABTS</a>) fell 10.2% to $0.7500 after gaining 14% on Wednesday.</li>
<li><strong>Avinger, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/avgr#NASDAQ">AVGR</a>) shares fell 9.7% to $2.98 following fourth-quarter results.</li>
<li><strong>Titan Machinery Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/titn#NASDAQ">TITN</a>) declined 9.6% to $24.28 after the company reported fourth-quarter results.</li>
<li><strong>Steelcase Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/scs#NYSE">SCS</a>) fell 9.4% to $11.82 after the company reported mixed fourth-quarter financial results and issued first-quarter revenue guidance below estimates.</li>
<li><strong>LexinFintech Holdings Ltd.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lx#NASDAQ">LX</a>) shares tumbled 8.4% to $1.96 following fourth-quarter financial results.</li>
<li><strong>Li Auto Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/li#NASDAQ">LI</a>) shares declined 7.9% to $31.38 after the company updated its delivery outlook. Li Auto said it now expects first-quarter deliveries of 76,000-78,000 vehicles, down from 100,000-103,000 earlier.</li>
<li><strong>Academy Sports and Outdoors, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aso#NASDAQ">ASO</a>) fell 7.1% to $66.20 after the company reported worse-than-expected fourth-quarter financial results and issued FY24 EPS guidance below estimates.</li>
<li><strong>Accenture plc</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/acn#NYSE">ACN</a>) fell 6.9% to $354.14 following mixed second-quarter financial results.</li>
<li><strong>Wearable Devices Ltd. </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wlds#NASDAQ">WLDS</a>) declined 6.6% to $0.6188 after surging 5% on Wednesday. Wearable Devices recently published a report saying the Mudra Band &#39;Can Be the Neural Bridge for Apple and Meta in their Next Wave of Smart Glasses Interaction.&#39;</li>
<li><strong>Darden Restaurants, Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dri#NYSE">DRI</a>) fell 5.3% to $165.27 after the company reported mixed third-quarter results and issued soft 2024 revenue guidance.</li>
</ul>
<p>&nbsp;</p>
<p>Now Read This: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/03/37863912/jim-cramer-likes-amazon-more-than-this-e-commerce-platform-calls-chipotle-the-king"><em> Jim Cramer Likes Amazon More Than This E-Commerce Platform, Calls Chipotle &#39;The King&#39; </em></a></p>


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JOAN

KAVL

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Why FactSet Research Shares Are Trading Lower By Around 5%? Here Are Other Stocks Moving In Thursday's Mid-Day Session

<p>Bulls are on fire in the aftermath of the Federal Reserve&#8217;s March policy meeting, igniting a rally in stocks across <a href="https://www.benzinga.com/markets">the board on Wall Street.</a></p>
<p>The S&amp;P 500 index surged above 5,250 points, continuing its upward trajectory to set new record highs. All eleven sectors of the S&amp;P 500 posted gains. </p>
<p>Meanwhile, the tech-heavy Nasdaq 100 surpassed 18,440 points, also achieving unprecedented all-time highs. The Dow Jones added over 300 points, edging closer to the historic milestone of 40,000 points.</p>
<p>In a notable display of risk sentiment, small caps also rose as evidenced by the <strong>iShares Russell 2000 ETF </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) up by 0.9%. </p>
<p>Shares of <strong>Apple Inc.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NYSE">AAPL</a>) faced a setback, down over 3%, as the Justice Department and 16 state attorneys general filed an antitrust lawsuit against the tech giant. The lawsuit alleges that Apple exerted monopolistic control in the smartphone market.</p>
<p>The U.S. dollar index rose, driven by significant gains of the greenback against the British pound and the Swiss franc, the latter of which suffered due to an unforeseen rate cut by the Swiss National Bank.</p>
<p>Gold paused for a breather, down 0.5%, after closing above $2,200 on Wednesday. <strong>Bitcoin </strong>(CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell 2% to $66,400. </p>

<h3 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices, ETFs</h3>
<p><figure class="wp-block-table is-style-stripes"><br />
<table>
<tbody>
<tr>
<td><strong>Major Indices</strong></td>
<td><strong>Price</strong></td>
<td><strong>1-day %chg</strong></td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,447.55</td>
<td>1.1%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,099.85</td>
<td>0.8%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>39,837.39</td>
<td>0.8%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,261.46</td>
<td>0.7%</td>
</tr>
</tbody>
</table>
<p></p></figure></p>
<p>The&nbsp;<strong>SPDR S&amp;P 500 ETF Trust</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.7% $523.87, the&nbsp;<strong>SPDR Dow Jones Industrial Average</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) rose 0.8% to $398.19 and the tech-heavy&nbsp;<strong>Invesco QQQ Trust</strong>&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rallied 1.2% to $449.06, according to&nbsp;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>.&nbsp;</p>
<p>Among sectors, the <strong>Industrials</strong> <strong>Select Sector SPDR Fund</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>) was the top performer for the day, up 1.1%, while the <strong>Utilities Select Sector SPDR Fund</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) was the laggard with a flat performance. </p>
<h2 class="wp-block-heading">Thursday&#8217;s Stock Movers</h2>
<ul>
<li>Shares of <strong>Reddit Inc.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDDT#NYSE">RDDT</a>) are indicated to open at $50-$52, in their first day of trading. </li>
<li><strong>Micron Technology, Inc. </strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) rallied nearly 16% following the memory chipmaker&#8217;s earnings announcement.</li>
<li>Chipmaker peers such as <strong>Broadcom Inc.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) rose 9% following a bullish note from Goldman Sachs. </li>
<li>Other stocks moving on earnings are <strong>Steelcase Inc.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCS#NYSE">SCS</a>) (down over 10%) and <strong>Five Below, Inc. </strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FIVE#NASDAQ">FIVE</a>) (down about 15%), <strong>Accenture plc </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACN#NYSE">ACN</a>) (down 8%), <strong>Winnebago Industries, Inc. </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WGO#NYSE">WGO</a>) (up over 5%) and <strong>Shoe Carnival, Inc. </strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SCVL#NASDAQ">SCVL</a>) (up nearly 7%), <strong>Darden Restaurants, Inc. </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRI#NYSE">DRI</a>) (down 6%). </li>
<li>Those reporting after the close include <strong>FedEx Corporation </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDX#NYSE">FDX</a>), <strong>Lululemon Athletica Inc. </strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LULU#NASDAQ">LULU</a>), <strong>NIKE, Inc.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NKE#NYSE">NKE</a>) and <strong>Worthington Steel, Inc. </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WS#NYSE">WS</a>).</li>
</ul>
<p>Read now: <em><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37875455/bank-stocks-hit-all-time-highs-analyst-points-to-further-rally-on-a-1995-soft-landi">Bank Stocks Hit All-Time Highs: Analyst Points To Further Rally On &#8216;A 1995 Soft Landing Scenario</a></em>&#8216;</p>
<p><em>Image created using artificial intelligence with Midjourney.</em></p>


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Bulls Stampede On Fed's Dovish Signal, Nasdaq 100 Hits New Record High, DOJ Sues Apple: What's Driving Markets Thursday?

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Although the stock market is near an all-time high, there are still plenty of <a href="https://www.investopedia.com/articles/investing/081415/look-buy-low-sell-high-strategy.asp">stocks that are underperforming</a>. Lots of great companies have not participated in the bull market over the past 18 months and seen their share price slide deep into the red. This presents an opportunity for astute investors who take a long-term view and have the wherewithal to snap up shares when they are on sale, riding them to future gains. </p>



<p>The benchmark <strong>S&amp;P 500</strong> might have had its <a href="https://www.cnbc.com/2024/03/27/stock-market-today-live-updates.html">best first quarter</a> to a year since 2019, but literally a third of the stocks listed on the exchange are in the red currently. While some of those names are long-term underachievers and bad investments, many are down due to a one-off earnings miss, disappointing guidance, or poor sentiment on the part of analysts and investors. The selloff has lowered valuations to the point where many stocks now look cheap and poised for a comeback. Here are the seven most undervalued sleeper stocks to buy in April 2024.    </p>



<h2>Tesla (TSLA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/06/tsla1600-7-300x169.png" alt="Tesla (TSLA) on stock market. Tesla financial success and profit."><div>Source: Rokas Tenys / Shutterstock.com</div></div><p>It&rsquo;s not without risk, but down 33% on the year and trading at $165 per share, the stock of electric vehicle maker <strong>Tesla </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/tsla-stock-quote/"><strong>TSLA</strong></a></span>) is starting to look intriguing if not undervalued. TSLA stock is sliding towards its 52-week low, is <a href="https://www.cnbc.com/2024/04/02/tesla-tsla-q1-2024-vehicle-delivery-and-production-numbers.html">the worst performer</a> in the S&amp;P 500 index, and currently trades at 38 times future earnings estimates, its lowest valuation since before the Covid-19 pandemic began in 2020. </p>



<p>Of course, there&rsquo;s a reason for the stock&rsquo;s decrease. Tesla just released its latest delivery figures that show its global sales continuing to decline. The company published <a href="https://www.cnbc.com/2024/04/02/tesla-tsla-q1-2024-vehicle-delivery-and-production-numbers.html">a first-quarter 2024 report</a> that showed its worldwide deliveries totaled 386,810, down 8.5% from a year earlier. At the same time, Tesla also announced that it&rsquo;s <a href="https://www.reuters.com/business/autos-transportation/tesla-raises-prices-model-y-cars-us-by-1000-2024-04-01/">raising prices</a> for all versions of its Model Y electric vehicles in the U.S. by $1,000, a move that&rsquo;s unlikely to spur demand. </p>



<p>Still, how low can TSLA stock go before it&rsquo;s time to bottom fish the shares? </p>



<h2>United Parcel Service (UPS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/06/ups-1600-2-300x169.png" alt="Envelopes with UPS logo on them. UPS stock."><div>Source: monticello / Shutterstock</div></div><p>Now might be <a href="https://www.barrons.com/articles/ups-stock-pick-bullish-teamsters-rebound-fedex-d6b62520">time to buy-the-dip</a> in <strong>United Parcel Service</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/ups-stock-quote/"><strong>UPS</strong></a></span>) stock. The delivery and logistics giant&rsquo;s share price is down 23% over the last 12 months, including a 6% decline in 2024. UPS stock currently trades at 19 times future earnings estimates and offers shareholders a quarterly dividend of $1.63 per share, for a yield of 4.37%. Best of all, things are looking up at United Parcel Service.   </p>



<p>While the company struggled with a drop-off in shipments after the pandemic surge ended, it is taking steps to shore up its business. UPS just <a href="https://www.reuters.com/world/us/ups-become-united-states-postal-services-primary-air-cargo-provider-2024-04-01/">struck a deal</a> to become the primary air cargo provider for the U.S. Postal Service, replacing rival <strong>Federal Express </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/fdx-stock-quote/"><strong>FDX</strong></a></span>). FedEx previously held the contract with the U.S. Postal Service for 22 years and earned about $2 billion in annual revenues from the deal. Now that business shifts to UPS, which should give its earnings a boost.</p>



<h2>Home Depot (HD)   </h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/12/homebuilder_construction_1600-300x169.png" alt="A photo of a person in a neon green vest holding blueprints and standing behind a white table covered with supplies like pencils, a computer, a ruler and two wooden house shapes. Homebuilder Stocks"><div>Source: ARMMY PICCA/ShutterStock.com</div></div><p><strong>Home Depot</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/hd-stock-quote/"><strong>HD</strong></a></span>) hasn&rsquo;t set the world on fire in recent years. HD stock continues to trail the broader market, having gained 6% in this year&rsquo;s first quarter compared to an 11% increase in the benchmark S&amp;P 500 index. But with the economy remaining strong and lower interest rates expected to spur housing demand, now might be the time to <a href="https://www.fool.com/investing/2024/04/02/home-depot-stock-has-10-upside-according-to-1-wall/">take a position</a> in the home improvement retailer. HD stock is trading at 24 times future earnings forecasts and offers a quarterly dividend of $2.25 a share for a yield of 2.46%.  </p>



<p>Home Depot also just announced <a href="https://ir.homedepot.com/news-releases/2024/03-28-2024-100102814">a blockbuster acquisition</a>. The company is buying privately held <strong>SRS Distribution</strong> for $18.25 billion as it bets on future growth coming from sales to professional contractors. Management has said that its sales growth is being driven by contractors, roofers, and other home professionals. The SRS Distribution acquisition is expected to close by the end of January 2025. The purchase is the largest in Home Depot&rsquo;s history and should increases its total addressable market by $50 billion.</p>



<p>Home Depot is also opening <a href="https://www.reuters.com/markets/deals/home-depot-buy-srs-distribution-1825-bln-deal-2024-03-28/">new distribution centers</a> across the U.S. and Canada that stock large amounts of items that professionals need, such as lumber and shingles, and delivering building materials directly to construction sites.</p>



<h2>McDonald&rsquo;s (MCD)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/07/mdc-1600-300x169.jpg" alt="McDonald's restaurant in Thailand."><div>Source: Tama2u / Shutterstock</div></div><p>The stock of fast food giant <strong>McDonald&rsquo;s </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/mcd-stock-quote/"><strong>MCD</strong></a></span>) remains in a funk. Year-to-date, MCD stock is down 6% and badly lagging the market. The decline is mainly due to concerns about a <a href="https://www.cnbc.com/2024/02/05/mcdonalds-mcd-q4-2023-earnings.html#:~:text=Net%20sales%20rose%208%25%20to,its%20Middle%20Eastern%20sales%20struggled.">global slowdown in sales</a> and worries that the new class of weight loss drugs will lead people to eat fewer cheeseburgers and fries. However, those issues run against McDonald&rsquo;s earnings, which remain strong, and the company&rsquo;s aggressive expansion efforts and menu diversification. </p>



<p>The Golden Arches just announced <a href="https://www.cnbc.com/2024/03/26/mcdonalds-to-sell-krispy-kreme-doughnuts-nationwide-by-end-of-2026.html">a new partnership</a> with <strong>Krispy Kreme </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/dnut-stock-quote/"><strong>DNUT</strong></a></span>) that will see the popular doughnuts sold at McDonald&rsquo;s 13,500 outlets across America. While that news sent DNUT stock up more than 20% in a day, it has done nothing to help MCD stock. Neither have plans announced last December to open 9,000 new McDonald&rsquo;s restaurant locations worldwide and add 100 million members to its loyalty rewards program by 2027. </p>



<p>Trading at 24 times future earnings estimates and with a quarterly dividend of $1.67 a share, giving it a yield of 2.40%, McDonald&rsquo;s is <a href="https://www.fool.com/investing/2024/04/02/3-reasons-to-buy-mcdonalds-stock-now/">a sleeper stock</a> that&rsquo;s worth considering. </p>



<h2>Adobe (ADBE)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/adbe-1600-1-300x169.png" alt="Adobe logo on the smartphone screen is placed on the Apple macbook keyboard on red desk background. ADBE stock."><div>Source: Tattoboo / Shutterstock</div></div><p>For a tech stock that&rsquo;s really hit the skids, look to <strong>Adobe </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/adbe-stock-quote/"><strong>ADBE</strong></a></span>). The software company behind popular products such as Photoshop and Illustrator has seen its share price drop 14% this year, placing it among the worst performers in the S&amp;P 500 index and at the very back of <a href="https://investorplace.com/industries/technology/">technology stocks</a>. ADBE stock has been in freefall ever since <strong>OpenAI </strong>introduced an artificial intelligence (<a href="https://investorplace.com/stock-quotes/ai-stock-quote/"><strong>AI</strong></a>) application that can <a href="https://www.investors.com/news/technology/adbe-stock-falls-as-openai-invades-its-turf/">generate images and videos </a>similar to Adobe&rsquo;s software products.  </p>



<p>However, the situation at Adobe isn&rsquo;t as grim as it&rsquo;s being made out to be and there now looks to be an opportunity to buy the company&rsquo;s <a href="https://www.cnbc.com/2024/03/15/adobe-shares-drop-12percent-on-weak-quarterly-revenue-guidance-.html">stock on sale</a>. Adobe recently reported strong financial results, announcing earnings per share (<a href="https://investorplace.com/stock-quotes/eps-stock-quote/"><strong>EPS</strong></a>) of $4.48 versus $4.38 that was expected among analysts. Revenue came in at $5.18 billion compared to $5.14 billion that was anticipated. Sales were up 11% from a year earlier. </p>



<p>Adobe also canceled its <a href="https://helpx.adobe.com/acrobat/using/generative-ai.html">planned $20 billion acquisition </a>of design software start-up <strong>Figma</strong>, which many analysts had criticized as too costly. And the company continues to introduce its own AI products, including a just announced assistant for its Reader and Acrobat apps.</p>



<h2>Darden Restaurants (DRI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/restaurant-1600-300x169.png" alt="Portrait of a happy waitress standing at restaurant entrance holding digital tablet. Restaurant."><div>Source: Rido / Shutterstock</div></div><p><strong>Darden Restaurants</strong>&lsquo; (NYSE:<span><a href="https://investorplace.com/stock-quotes/dri-stock-quote/"><strong>DRI</strong></a></span>) share price has been soft, making the stock look undervalued at current levels. So far this year, the company that owns franchise restaurants such as the <strong>Olive Garden</strong> and <strong>LongHorn Steakhouse</strong>, has seen its <a href="https://ca.movies.yahoo.com/movies/heres-why-retain-darden-restaurants-144200699.html">share price rise only 2%</a>. In the last 12 months, DRI stock has gained 8% compared to a 26% increase in the S&amp;P 500 index. The weak share price appreciation comes despite the company managing to claw itself out of the doldrums it experienced during the pandemic. </p>



<p>In late March, Darden reported <a href="https://www.barrons.com/articles/darden-restaurants-earnings-stock-outlook-07d20085">mixed financial results</a>, with its overall same-store sales decreasing 1% in the final quarter of 2023 compared to a year earlier. Almost all of the company&rsquo;s restaurant reported same-store sales declines in the period. However, hope arrives with the acquisition of Ruth&rsquo;s Chris Steak House, which provides Darden with 53 new restaurant locations that should give its sales a lift moving forward. The company provided conservative guidance, which leaves room for upside surprises over the rest of this year. </p>



<h2>eBay (EBAY)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/ebay1600c-300x169.jpg" alt="an ebay shipping box. cheap stocks"><div>Source: ShutterStockStudio / Shutterstock.com</div></div><p>After years of declining returns, there suddenly looks to be life in shares of e-commerce company <strong>eBay</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/ebay-stock-quote/"><strong>EBAY</strong></a></span>). <a href="https://www.morningstar.ca/ca/news/247004/ebay-stock-of-the-week.aspx">EBAY stock is up 18%</a> year-to-date. However, despite the big run, there still appears to be an opportunity to buy shares. Currently, eBay&rsquo;s stock is trading 36% below the all-time high it reached in 2021 at the height of the pandemic rally. Trading at just nine times future earnings, EBAY stock looks undervalued, especially for a technology company of its size. And the shares pay a quarterly dividend of 27 cents per share for a yield of 2%. </p>



<p>Other reasons to like EBAY stock are that the company announced in February that it is <a href="https://www.baystreet.ca/dividends/972/eBay-Raises-Dividend-8-And-Announces-2-Billion-Stock-Buyback">raising its dividend payment </a>to shareholders by 8% and undertaking a new $2 billion stock buyback program. The dividend hike and stock buyback program were announced alongside quarterly results that beat Wall Street forecasts, and came a month after the company announced plans to <a href="https://www.reuters.com/business/ebay-slash-1000-jobs-scale-back-contracts-2024-01-24/">eliminate 9% of its workforce</a>, or about 1,000 full-time employees, as it seeks to control costs and lower expenses.</p>



<p><em>On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.</em></p>
<div><p>Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/the-7-most-undervalued-sleeper-stocks-to-buy-in-april-2024/">The 7 Most Undervalued Sleeper Stocks to Buy in April 2024</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

The 7 Most Undervalued Sleeper Stocks to Buy in April 2024

Analysts fell to the sidelines weighing in on LGI Homes (LGIH – Research Report) and Darden (DRI – Research Report) with neutral ratings, indicatin...

Analysts Offer Insights on Consumer Cyclical Companies: LGI Homes (LGIH) and Darden (DRI)

Bank of America Securities analyst Sara Senatore maintained a Buy rating on Darden (DRI – Research Report) today. The company's shares opened today...

Darden (DRI) Receives a Buy from Bank of America Securities

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>&ldquo;Let your winners run.&rdquo; That&rsquo;s the advice I gave two months ago in arguing for investors to <a href="https://investorplace.com/2024/02/3-stocks-just-hit-new-52-week-highs-should-you-still-be-buying/">not take profits</a> on winning investments even if they seem like overvalued stocks. Doing  so undercuts your portfolio&rsquo;s returns. I stand by that advice. But as they also say, never say never.</p>



<p>By and large I am a buy-and-hold investor. I&rsquo;m willing to let languishing stocks languish (ask me about my <strong>Warner Bro Discovery</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/wbd-stock-quote/"><strong>WBD</strong></a></span>) investment!) while letting more successful investments like <strong>Exxon Mobil</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/xom-stock-quote/"><strong>XOM</strong></a></span>) keep growing (drill, baby, drill!). My winning stocks will more than make up for the few losers I inevitably buy.</p>



<p>Still, some investors prefer protecting their downside a bit. Selling stocks that are at new highs doesn&rsquo;t mean they are bad companies. It just means you can lock in some profits. It might not be the optimal investing strategy but it&rsquo;s not a bad one.</p>



<p>So investors just might find these three companies that hit 52-week highs are stocks to sell before their bubble bursts.&nbsp;</p>



<h2>Caterpillar (CAT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/cat-stock-7-300x169.jpg" alt="A Caterpillar backhoe at the top of a hill"><div>Source: aapsky / Shutterstock.com</div></div><p>Heavy equipment manufacturer <strong>Caterpillar</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/cat-stock-quote/"><strong>CAT</strong></a>) is definitely one of those stocks that isn&rsquo;t a bad company to be sold just because it hit a 52-week high. However, it is a cyclical stock and though several tailwinds could push it forward, it also faces some headwinds. It&rsquo;s an example of a stock I would normally recommend holding long-term but could see someone wanting to take profits before a downturn arrived.</p>



<p>Some of CAT&rsquo;s tailwinds include the $1.2 trillion infrastructure spending bill and the surprising resiliency of the U.S. housing market. Stacked up against that is a commodities market that could soften globally, or at least make comparisons to last year difficult. Also, Minneapolis Federal Reserve Bank President Neel Kashkari recently said <a href="https://www.reuters.com/markets/us/feds-kashkari-says-2024-rate-cuts-under-threat-if-inflation-continues-stall-2024-04-04/">interest rate cuts could be withheld</a> if inflation remains unsettled. That could throw the housing market and other industries into turmoil if the cost of capital remains high. Caterpillar also faces stiff competition in foreign markets which could challenge revenue and profits.</p>



<p>While the equipment maker was able to raise prices in the most recent quarter, helping to boost sales to $17.1 billion, sales volumes declined. Sales are expected to grow less than 1% this year and earnings will stay essentially flat. CAT stock&rsquo;s cyclicality just might be coming into play at these new lofty heights.</p>



<h2>DoorDash (DASH)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/04/doordash1600-300x169.jpg" alt="Close up of Doordash (DASH) logo and symbol displayed at the entrance to one of their offices"><div>Source: Sundry Photography / Shutterstock.com</div></div><p><strong>DoorDash</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/dash-stock-quote/"><strong>DASH</strong></a></span>) is the <a href="https://secondmeasure.com/datapoints/food-delivery-services-grubhub-uber-eats-doordash-postmates/">leading third-party delivery service</a> with a 67% share &mdash; almost three times greater than <strong>Uber Technologies</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/uber-stock-quote/"><strong>UBER</strong></a></span>) 23% share with Uber Eats. <strong>GrubHub</strong> comes in a distant third with an 8% share. DoorDash is likely to maintain that commanding lead as the market devolves into a duopoly between it and Uber.</p>



<p>While delivery services got a big boost during the pandemic the effects have worn thin as normal dining habits resumed. Foot traffic at big restaurant chains is growing, according to data from geolocation services firm Placer.ai. Casual dining establishments like <strong>Darden Restaurants</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/dri-stock-quote/"><strong>DRI</strong></a></span>), which owns Olive Garden and LongHorn Steakhouses saw <a href="https://www.placer.ai/blog/darden-brands-location-analytics-and-consumer-behavior">visits above 2023 levels</a>. Similarly, Panera Bread, which may go public again, is seeing <a href="https://www.placer.ai/blog/panera-bread-well-positioned-for-possible-ipo">strong traffic trends</a>, too.</p>



<p>DoorDash will also need to adjust to greater regulation of gig economy companies. Dashers, or what DoorDash calls its drivers, are starting to get classified as employees in many places with minimum pay rates, health benefits and other perks of employees getting imposed. This could significantly raise costs and cut sharply into profit margins.&nbsp;</p>



<p>DoorDash is another company that won&rsquo;t be going away after hitting a 52-week high. Yet it trades at nearly 100 times next year&rsquo;s earnings, goes for 6x sales and 41x its free cash flow (<span>FCF</span>). Those are some lofty valuations even for a market leader. Based on those metrics alone DoorDash stock might be due to have its bubble burst.</p>



<h2>Harley-Davidson (HOG)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/07/hog_harley_davidson_1600-300x169.jpg" alt="A close-up photograph of the tank to a Harley-Davidson motorcycle with raindrops on it."><div>Source: Alex Erofeenkov / Shutterstock.com</div></div><p>Last is iconic motorcycle manufacturer <strong>Harley-Davidson</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/hog-stock-quote/"><strong>HOG</strong></a></span>). An aging rider base, a focus on electric motorcycles and tougher competition are just some of the forces arrayed against Harley. They are many of the same ones the bike maker has confronted for years.</p>



<p>Harley long owned half of the heavyweight motorcycle market but its share fell from 44% in 2021 to below 38% last year. <strong>Polaris Industries</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/pii-stock-quote/"><strong>PII</strong></a></span>), owner of the equally iconic Indian Motorcycle, <a href="https://s27.q4cdn.com/214071222/files/doc_financials/2023/q4/2023-Q4-FY-PII-Earnings-Presentation-1-30-24_F.pdf">gained share last year</a> and has about 11% of the market.</p>



<p>Although revenue rose 1% in 2023, motorcycle sales fell 9% and operating profits declined 14%. In the U.S., its <a href="https://www.sec.gov/ix?doc=/Archives/edgar/data/793952/000079395224000044/hog-20240208.htm">largest market</a>, Harley sales dropped 10%. We are, however, entering the spring and summer months, which tend to be Harley&rsquo;s strongest. That could explain its temporary lift.</p>



<p>Yet electric motorcycles aren&rsquo;t faring any better. Despite spinning off <strong>LiveWire Group</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/lvwr-stock-quote/"><strong>LVWR</strong></a></span>) into its own publicly traded company, Harley retains 74% ownership and CEO Joachen Zeitz is LiveWire&rsquo;s board chairman. Harley&rsquo;s CFO, COO and chief legal counsel all serve on the e-bike&rsquo;s board. Sales of LiveWire&rsquo;s e-bikes are financed through Harley-Davidson Financial Services.</p>



<p>LiveWire generated over $38 million for Harley in 2023, down 18% from the year before. It also sold just 660 e-bikes, far below the 7,200 Harley originally boasted it would sell when promoting the spinoff. The 100,000 e-bikes once forecast for 2026 is far, far out of reach, especially as the fervor for electric vehicles has subsided.</p>



<p>The stock&rsquo;s new high is a good time to sell. Even though it trades at seemingly cheap multiples, this could be as good as it gets for the bike maker.</p>



<p><em>On the date of publication, Rich Duprey held a LONG position in WBA, XOM and PII stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.</em></p>
<div><p>Rich Duprey has written about stocks and investing for the past 20 years. His articles have appeared on Nasdaq.com, The Motley Fool, and Yahoo! Finance, and he has been referenced by U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, USA Today, Milwaukee Journal Sentinel, Cheddar News, The Boston Globe, L&rsquo;Express, and numerous other news outlets.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/52-week-high-danger-zone-3-stocks-to-sell-before-the-bubble-bursts/">52-Week High Danger Zone: 3 Stocks to Sell Before the Bubble Bursts</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

52-Week High Danger Zone: 3 Stocks to Sell Before the Bubble Bursts

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>With <a href="https://thehill.com/business/4561631-corporate-hit-record-high-as-economy-boomed-in-fourth-quarter-of-2023/">corporate profits at record highs</a>, many companies are returning much of that cash to investors through share repurchase programs. You can profit from this trend by entering long-term positions in buyback stocks.</p>



<p>Share repurchases may have their social and political critics, but from the investor&rsquo;s standpoint, stock buybacks can be an effective tool for a company to maximize shareholder value. By <a href="https://www.investopedia.com/terms/s/sharerepurchase.asp">reducing the amount of shares outstanding</a>, repurchases can provide a lift for earnings per share.</p>



<p>As stocks typically rise over the long term in tandem with increases in per-share earnings, share repurchase programs can ultimately boost long-term total returns.</p>



<p>So, what are some examples of top buyback stocks right now? Consider these seven. Each of them has initiated or expanded a large-scale share repurchase program in recent months.</p>



<h2>Buyback Stocks: Adobe (ADBE)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/adbe-1600-1-300x169.png" alt="Adobe logo on the smartphone screen is placed on the Apple macbook keyboard on red desk background. ADBE stock."><div>Source: Tattoboo / Shutterstock</div></div><p>Last month, software giant <strong>Adobe</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/adbe-stock-quote/"><strong>ADBE</strong></a>) announced plans to repurchase up to <a href="https://news.adobe.com/news/news-details/2024/Adobe-Announces-New-25-Billion-Stock-Repurchase-Program/default.aspx">$25 billion</a> worth of shares between now and 2028. Based on Adobe&rsquo;s current market cap, this represents around 11.8% of ADBE&rsquo;s outstanding share count.</p>



<p>This buyback news has thus far had zero impact on ADBE stock. In fact, waning excitement about the generative AI growth trend has overshadowed it. Nevertheless, in time, this buyback could play a role in getting ADBE moving in the right direction once again.</p>



<p>Why? Steadily decreasing the share count won&rsquo;t be the main driver, but alongside organic growth, it may contribute to Adobe delivering earnings growth in line with forecasts. </p>



<p>The sell-side estimates that Adobe&rsquo;s earnings will grow by around <a href="https://www.wsj.com/market-data/quotes/adbe">13%</a> during the fiscal year ending November 2025, with earnings experiencing another 13.4% increase during the fiscal year ending November 2026.</p>



<h2>Darden Restaurants (DRI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/dri1600-300x169.jpg" alt="an Olive Garden sign on the front of the restaurant"><div>Source: Shutterstock</div></div><p>On March 21, <strong>Darden Restaurants</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/dri-stock-quote/"><strong>DRI</strong></a>) become one of the top buyback stocks, when the Olive Garden and Longhorn Steakhouse parent unveiled outside its latest earnings release plans to buy back up to <a href="https://investor.darden.com/news/news-details/2024/Darden-Restaurants-Reports-Fiscal-2024-Third-Quarter-Results-Declares-Quarterly-Dividend-Authorizes-New-1-Billion-Share-Repurchase-Program-And-Updates-Fiscal-2024-Financial-Outlook/default.aspx">$1 billion</a> worth of DRI shares.</p>



<p>Admittedly, while $1 billion is a significant sum, for those aware of Darden&rsquo;s market cap, it may sound like a drop in the bucket. If the company were to repurchase DRI stock worth $1 billion today, this would only decrease DRI&rsquo;s outstanding share count by around 5.5%. </p>



<p>However, it&rsquo;s not as if Darden&rsquo;s share repurchase program is the only catalyst at play for the stock. <em>InvestorPlace&rsquo;s</em> Joel Baglole recently argued that the company&rsquo;s recent acquisition of Ruth Chris Steak House, plus the possibility of better-than-feared results following mixed results last quarter, are <a href="https://investorplace.com/2024/04/the-7-most-undervalued-sleeper-stocks-to-buy-in-april-2024/">two additional factors</a> that could give shares a lift down the road.</p>



<h2>Buyback Stocks: eBay (EBAY)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/ebay1600c-300x169.jpg" alt="an ebay shipping box. cheap stocks"><div>Source: ShutterStockStudio / Shutterstock.com</div></div><p>Back in February, alongside its latest fiscal results, <strong>eBay</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/ebay-stock-quote/"><strong>EBAY</strong></a>) announced that it had increased its share repurchase program by <a href="https://www.investopedia.com/ebay-among-top-s-and-p-500-gainers-with-8-surge-on-buoyant-results-buyback-plan-8601481">$2 billion</a>. </p>



<p>This means that the online auction marketplace operator is now authorized to buy back as much as $3.4 billion worth of its outstanding shares.</p>



<p>Considering EBAY&rsquo;s current market cap of $26.6 billion, this means the company could retire as much as 12.8% of its outstanding shares. Decreasing the share count would help to counter the company&rsquo;s weak earnings growth in recent years, which has had a negative impact on the performance of EBAY stock.</p>



<p>That&rsquo;s not all. Ebay is also aggressively reducing operating expenses, including <a href="https://www.bloomberg.com/news/articles/2024-01-24/ebay-to-cut-1-000-jobs-reduce-contractors-to-sharpen-focus">mass layoffs</a>, which stand to increase profitability. Even if growth remains slow, enhancements to the bottom line may lead to a re-rating for this undervalued tech stock, which currently trades for only 11 times forward earnings.</p>



<h2>FedEx (FDX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/fdx1600-300x169.jpg" alt="A FedEx employee loads a FedEx Express truck in Manhattan."><div>Source: Antonio Gravante / Shutterstock.com</div></div><p><strong>FedEx&rsquo;s</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/fdx-stock-quote/"><strong>FDX</strong></a>) post-pandemic slump may end soon. At least based on the shipping company&rsquo;s most recently released fiscal results. </p>



<p>Although growth has yet to re-accelerate to Covid-era levels, much like other companies facing a growth slowdown, FedEx is making up for it through cost reduction efforts.</p>



<p>These efforts <a href="https://www.investopedia.com/fedex-stock-surges-as-earnings-get-a-boost-from-cost-cutting-efforts-8613003">were material in last quarter&rsquo;s earnings beat</a>. However, it wasn&rsquo;t just better-than-expected results that resulted in FDX stock surging following the March 21 earnings release. Rather, it was news of Fedex&rsquo;s latest share repurchase plans. </p>



<p>Adding to the $1 billion in share repurchases last quarter, the company announced it would buy back another $5 billion in stock. Against FDX&rsquo;s current market cap of $65.9 billion, this means that Fedex is authorized to buy back as much as 7.6% of its outstanding shares. With this in mind, consider FDX one of the top buyback stocks to buy.</p>



<h2>Buyback Stocks: ODP Corporation (ODP)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/office-1600-300x169.png" alt="Group of colleagues discuss something in an office conference room. commercial real estate"><div>Source: GaudiLab / Shutterstock</div></div><p><strong>ODP</strong> <strong>Corporation</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/odp-stock-quote/"><strong>ODP</strong></a>) is the parent company of office supply retailers OfficeMax and Office Depot. Even as the company has reported declining sales and lackluster earnings growth in recent years, shares have performed well over the past few months.</p>



<p>While not certain, a reason for this may be recent activist investor involvement. Back in December, hedge fund <strong>Arex Capital Management</strong> <a href="https://www.globenewswire.com/news-release/2023/12/18/2797890/0/en/AREX-Capital-Issues-Letter-to-Board-of-Directors-of-The-ODP-Corporation.html">started pushing</a> for ODP&rsquo;s board to make sweeping changes to unlock value out of ODP stock, which trades at a highly discounted 8.9 times forward earnings.</p>



<p>In February, the company responded with its own set of proposed big moves. These included cost-cutting plans, as well as plans to buy back <a href="https://www.theodpcorp.com/news-releases/news-release-details/odp-corporation-announces-fourth-quarter-and-full-year-2023">$1 billion</a> worth of shares. For reference, ODP has a market cap of just $1.85 billion. Implementation of this share repurchase plan could go a long way in sending ODP to much higher prices. </p>



<h2>PVH (PVH)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/retail-shopping-1600-300x169.png" alt="Friends sit on a ledge with shopping bags after shopping retail stores. Retail Stocks to Buy"><div>Source: Rawpixel.com / Shutterstock</div></div><p>Earlier this month, <strong>PVH&rsquo;s</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/pvh-stock-quote/"><strong>PVH</strong></a>) latest quarterly earnings release elicited a negative reaction from the market.</p>



<p>On the heels of lackluster guidance, shares in the apparel company tumbled by over 22%. However, there was a silver lining contained within the earnings release.</p>



<p>That would be the Tommy Hilfiger and Calvin Klein parent&rsquo;s plans to buy back <a href="https://www.pvh.com/news/press-releases/PVH-Corp-Reports-2023-Fourth-Quarter-Revenue-and-Earnings-Above-Guidance-and-Provides-2024-Outlook">$2 billion</a> worth of PVH stock between now and July 2028. </p>



<p>As $2 billion represents nearly a third of PVH&rsquo;s current valuation, this development makes it one of the top buyback stocks. Sure, the impact of this buyback will play out slowly. However, a rebound could happen far sooner</p>



<p>How so? As a <em>Seeking Alpha</em> commentator Seeking Profits argued in a post-earnings write-up on PVH, the aforementioned <a href="https://seekingalpha.com/article/4681764-pvh-2024-guidance-may-be-overly-conservative">weak guidance may have been overly conservative</a>. This suggests the strong possibility that the company delivers positive surprises with its next few earnings releases.</p>



<h2>Buyback Stocks: Ulta Beauty (ULTA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/ULTA1600-300x169.jpg" alt="Orange Ulta Beauty (ULTA) logo on storefront"><div>Source: Jonathan Weiss / Shutterstock.com</div></div><p><strong>Ulta Beauty</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/ulta-stock-quote/"><strong>ULTA</strong></a>) is another example of buyback news getting overshadowed by disappointing guidance. </p>



<p>In its Q4 2023 earnings release, Ulta reported results that exceeded expectations. The beauty retailer also said that it was launching a new $2 billion share repurchase program.</p>



<p>However, instead of focusing on these positives, investors <a href="https://www.investopedia.com/ulta-beauty-stock-falls-on-weak-margin-forecast-8609574">focused mostly on Ulta&rsquo;s guidance calling for weak margins</a>. To make matters worse, ULTA stock has continued to tank over concerns about a <a href="https://seekingalpha.com/news/4086868-cosmetics-stocks-slump-after-ulta-beauty-warns-on-beauty-sales-slowdown">beauty sales slowdown</a>. </p>



<p>However, in response to this sell off Loop Capital&rsquo;s Anthony Chukumba has upgraded ULTA from &ldquo;hold&rdquo; to &ldquo;buy,&rdquo; stating this <a href="https://www.barrons.com/articles/ulta-beauty-stock-upgrade-42c069c0">selloff was &ldquo;overdone.&rdquo;</a></p>



<p>While not citing the buyback plans in his upgrade, Chukumba did note that Ulta may soon start to return cash to shareholders in another way: by starting to pay a quarterly dividend. The analyst believes making such a move could result in a positive response from the market.</p>



<p><em>On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com</em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"><em>Publishing Guidelines</em></a><em>.</em></p>
<div><p>Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/7-buyback-kings-to-buy-as-corporate-cash-floods-market/">7 Buyback Kings to Buy as Corporate Cash Floods the Market</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

7 Buyback Kings to Buy as Corporate Cash Floods the Market

New constituents of Goldman Sachs' ROE growth basket

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>The concept of stocks for a hot job market comes at an awkward juncture. From the perspective of the Federal Reserve, it sought an excuse to raise interest rates. Now, with nonfarm payrolls coming in hotter than anticipated, it may not be impossible for a policy pivot to occur.</p>



<p>Still, one alternative proposal is that the central bank may take a modest approach to financial engineering. If so, the robust labor market &ndash; while carrying inflationary implications &ndash; offers one significant positive: more people have more money to spend. And that extra cash will almost certainly work its way into the economy.</p>



<p>Even with the challenges that we have, Americans continue to spend. Indeed, we&rsquo;re spending money we don&rsquo;t have, with <a href="https://www.cnbc.com/2024/02/06/credit-card-balances-jump-to-new-1point13-trillion-record-at-end-of-2023.html#:~:text=Americans%20now%20owe%20a%20collective,the%20New%20York%20Fed%20found.">credit card debt skyrocketing to $1.13 trillion</a>. Yet the machine keeps marching onward. If you believe that the music won&rsquo;t stop, below are the stocks for a hot job market.</p>



<h2>HF Sinclair (DINO)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/10/oil-price-predictions1600-300x169.png" alt="Rise in gasoline prices concept with double exposure of digital screen with financial chart graphs and oil pumps on a field. Oil prices and oil price predictions"><div>Source: Golden Dayz / Shutterstock.com</div></div><p>In my opinion, the bullish case for <strong>HF Sinclair</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/dino-stock-quote/"><strong>DINO</strong></a>) sells itself. An independent energy company, HF Sinclair produces and markets gasoline, diesel fuel, jet fuel and many other petroleum-based products. Thus, it&rsquo;s a downstream operator, meaning that it focuses on the marketing and refining end of the hydrocarbon value chain. Stated differently, if it goes in your car, it&rsquo;s downstream.</p>



<p>One of the cynical factors that make DINO a compelling idea for stocks for a hot job market is the broader economic backdrop. Yes, electric vehicles are becoming more commonplace. However, the vast majority of people drive combustion-powered vehicles. Further, when discussing new energy vehicles, it&rsquo;s <a href="https://www.nytimes.com/2024/03/09/business/toyotas-hybrid-electric-vehicles.html#:~:text=Last%20year%20in%20the%20U.S.,hybrids%20and%20plug%2Din%20models.">hybrids that have dominated the discourse</a>. Guess what? Hybrids need gasoline.</p>



<p>With more people having jobs, workers make enough to afford the rising prices of gasoline. However, they&rsquo;re not making so much that they can make the jump to EVs. Therefore, DINO&rsquo;s assessment as a <a href="https://www.tipranks.com/stocks/dino/forecast">moderate buy</a> is quite reasonable. Wall Street&rsquo;s experts believe shares can rise to $66, with the high-side target hitting $78.</p>



<h2>Carmax (KMX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/10/kmx-stock-1-300x169.jpg" alt="a Carmax (KMX) sign on a storefront"><div>Source: Jonathan Weiss / Shutterstock.com</div></div><p>Given the recent volatility in used-car dealership <strong>Carmax</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/kmx-stock-quote/"><strong>KMX</strong></a>), KMX seems an unusually risky idea for stocks for a hot job market. Indeed, management didn&rsquo;t offer an encouraging outlook during its most recent earnings call. Further, inflation remains hot (naturally) and borrowing costs are also elevated. This dynamic is hampering demand for big-ticket items.</p>



<p>However, the reality is that vehicles &ndash; whether they be combustion powered or otherwise &ndash; are mechanical products. Mechanical products eventually wear down or in the case of EVs don&rsquo;t hold their charge. Now, in certain parts of the country (mainly in the east coast), you can get away without having a personal vehicle.</p>



<p>Try that in California or anywhere else. You&rsquo;re just not going to get that far. And so, we come across a harsh reality: used cars may be an inevitability.</p>



<p>Sure, the latest projections for the current fiscal year call for earnings per share of $3.41 on sales of $26.64 billion. That implies very modest growth on the top line. However, because of the necessity of personal transportation, the high-side metrics of $4.10 EPS on revenue of $28.58 billion isn&rsquo;t out of the question.</p>



<h2>Apple (AAPL)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/09/aapl1600-300x169.png" alt="Apple (AAPL) logo brand and text sign on entrance facade store American multinational boutique corporation dealership shop. Apple Layoffs"><div>Source: sylv1rob1 / Shutterstock.com</div></div><p>One of the challenges associated with consumer technology giant <strong>Apple</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/aapl-stock-quote/"><strong>AAPL</strong></a>) is commoditization. When the company launched its first iPhone, it truly revolutionized the world. It singlehandedly pioneered an entirely new product category. Then came other smart devices, which have done the company so well. However, these devices are no longer special and cheaper copycats have sprouted everywhere.</p>



<p>That said, what I appreciate about the &ldquo;fruit&rdquo; brand is that it commands social cachet. It&rsquo;s not just about the devices but the underlying Apple ecosystem. Therefore, with the unemployment rate coming in lower than expected, people may be incentivized to boost their discretionary spending. If so, I can see Apple leveraging this social cachet to its advantage.</p>



<p>For the current fiscal year, analysts are seeking EPS of $6.55, a noticeable bump up from last year&rsquo;s print of $6.13. Now, the top line is much more modest, with projected sales of $386.51 billion less than 1% up from fiscal 2023&rsquo;s result. However, fiscal 2025 could see sales jump to nearly $412 billion. Thus, AAPL could rank among the stocks for a hot job market.</p>



<h2>Amazon (AMZN)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/amzn_amazon_2_1600-300x169.png" alt="Closeup of the Amazon logo at Amazon campus in Palo Alto, California. The Palo Alto location hosts A9 Search, Amazon Web Services, and Amazon Game Studios teams. AMZN stock"><div>Source: Tada Images / Shutterstock.com</div></div><p>A company that needs no introduction, <strong>Amazon</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/amzn-stock-quote/"><strong>AMZN</strong></a>) represents one of the top stocks for a hot job market. Fundamentally, the company pioneered the e-commerce revolution. What&rsquo;s remarkable is that post-pandemic, consumers have gravitated toward online transactions. Significantly, <a href="https://fred.stlouisfed.org/series/ECOMPCTSA">e-commerce transactions</a> as a percentage of total retail sales have been steadily rising since the second quarter of 2022.</p>



<p>Back during the worst of the Covid-19 crisis (Q2 2020), this metric soared to a record 16.5%. It will be difficult to match that level of scope and scale. Yet we&rsquo;re close, with e-commerce transactions coming in at 15.6% of total sales in Q4 2023. Conspicuously, this rise occurred during a period of rising inflation and rising interest rates.</p>



<p>It&rsquo;s possible that consumers may have acclimated to the inflationary paradigm. If so, AMZN could be a compelling idea for stocks for a hot job market. With the unemployment rate so low, people could resume their obsession with online transactions.</p>



<p>Presently, experts rate AMZN a <a href="https://www.tipranks.com/stocks/amzn/forecast">unanimous strong buy</a> with a $212.21 average price target. It&rsquo;s a reasonable assessment given the underlying relevance.</p>



<h2>Starbucks (SBUX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/sbux1600b-300x169.jpg" alt="Learnin' From Luckin, Starbucks Stock Heats Up a Strategy"><div>Source: monticello / Shutterstock.com</div></div><p>Based on broader economic challenges, I&rsquo;ve been skeptical about the prospects for <strong>Starbucks</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/sbux-stock-quote/"><strong>SBUX</strong></a>). Yes, it&rsquo;s pretty much the reason for existence among suburban America. It may be responsible for maintaining the mental health of white-collar office workers. Yet its caffeinated products are heavily overpriced. You know what I&rsquo;m talking about if you go to one.</p>



<p>Still, a combination of a robust labor market and broader normalization trends (i.e. return to office) could inspire the need for psychological rewards. People need their caffeine to lift their spirits and admittedly, Starbucks&rsquo; products feature an addictive nature. Your brain fills with endorphins the moment you walk in. That&rsquo;s probably by design.</p>



<p>Covering experts believe the company&rsquo;s EPS will land at $4.04 in fiscal 2024. That&rsquo;s a big improvement over last year&rsquo;s print of $3.54. Also, sales could clock in at $38.75 billion, up 7.7% from 2023&rsquo;s tally of $35.98 billion.</p>



<p>What&rsquo;s notable is that in fiscal 2025, analysts are seeking revenue of $42.46 billion, up 10% from projected 2024 sales. So, it could be one of the stocks for a hot job market.</p>



<h2>Darden Restaurants (DRI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/dri1600-300x169.jpg" alt="an Olive Garden sign on the front of the restaurant"><div>Source: Shutterstock</div></div><p>An intriguing but risky idea for stocks for a hot job market, <strong>Darden Restaurants</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/dri-stock-quote/"><strong>DRI</strong></a>) could potentially benefit from the increase in discretionary funds. To be clear, it&rsquo;s not an argument without downside concerns. With so many Americans deeply indebted, one of the easiest budget items to cut is entertainment.</p>



<p>That said, an increase in the employment rate suggests that people will be looking to blow off some steam during happy hours or the weekends. From that angle, DRI stock could make sense. Also, it&rsquo;s important to consider Darden&rsquo;s <a href="https://investor.darden.com/news/news-details/2023/Darden-Restaurants-Completes-Acquisition-of-Ruths-Hospitality-Group/default.aspx">acquisition</a> of premium steakhouse Ruth&rsquo;s Chris. This buyout could help Darden target the higher-income crowd, who may be looking for distinct experiences.</p>



<p>Analysts are overall bullish on DRI stock, pegging it a <a href="https://www.tipranks.com/stocks/dri/forecast">consensus strong buy</a>. Further, for the current fiscal year, they&rsquo;re anticipating EPS of $8.85, a big improvement over last year&rsquo;s print of $7.99. As for the top line, the experts are targeting sales of $11.41 billion, up almost 9% from the prior year.</p>



<h2>Universal Technical Institute (UTI)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/08/student-loan-college-1600-300x169.png" alt="Black college graduation cap laying on a pile of $100 and $20 dollar bills"><div>Source: shutterstock.com/zimmytws</div></div><p>Although the labor market is booming, not everyone will win out. That&rsquo;s just economic reality. On a related point, not everyone will be satisfied with their income. I&rsquo;d venture to say that with the inflationary pressures, most people are dissatisfied with their compensation. And that&rsquo;s where <strong>Universal Technical Institute</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/uti-stock-quote/"><strong>UTI</strong></a>) comes into play. Basically, the company provides real skills that are in high demand.</p>



<p>The company provides vocational education geared toward the transportation or mobility space. What&rsquo;s really intriguing here is the fading demand for plug-in electric-powered vehicles. Stated differently, combustion-based platforms should enjoy extended relevancy. That means the addressable market for mechanics may be larger than previously anticipated.</p>



<p>For the current fiscal year, covering experts are seeking EPS of 70 cents. That&rsquo;s a huge leap up from last year&rsquo;s result of 13 cents EPS. Also, revenue is expected to land at $716.09 million. That&rsquo;s up 17.9% from 2023&rsquo;s haul of $607.41 million.</p>



<p>Finally, analysts rate UTI a <a href="https://www.tipranks.com/stocks/uti/forecast">unanimous strong buy</a> with a $17.60 price target. It&rsquo;s one of the stocks for a hot job market.</p>



<p><em>On the date of publication, Josh Enomoto</em><em> did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;</em><em>The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;</em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank"><em>Publishing Guidelines</em></a><em>.</em><em></em></p>
<div><p>A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/7-stocks-poised-to-profit-from-the-red-hot-job-market/">7 Stocks Poised to Profit From the Red-Hot Job Market</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

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Darden Restaurants: Staying On The Sidelines Until More Positive SSS Performance

Darden Restaurants: An Appetizing Dividend Growth Stock

Dividend yield and growth stock list by Goldman

ABBV

ADBE

AMGN

AMZN

BKNG

CMCSA

CSCO

DASH

DINO

DNUT

EBAY

FAST

FITB

FOXA

INTC

JNPR

LGIH

MCHP

MDLZ

MPWR

NXPI

PAYX

QCOM

SBUX

SWKS

TMUS

TRGP

TRMB

TSLA

TXRH

UBER

ULTA

VICI

VTRS

Press Releases

Darden Restaurants Reports Fiscal 2023 Fourth Quarter and Full Year Results; Increases Quarterly Dividend; And Provides Fiscal 2024 Outlook

Darden Restaurants, Inc. Announces Retirement of Board Chairman

DARDEN RESTAURANTS TO HOST FISCAL 2024 FIRST QUARTER CONFERENCE CALL ON SEPTEMBER 21

Darden Restaurants Reports Fiscal 2024 First Quarter Results; Declares Quarterly Dividend; Reiterates Fiscal 2024 Outlook; And Announces Election of New Board Chair

DARDEN RESTAURANTS TO HOST FISCAL 2024 SECOND QUARTER CONFERENCE CALL ON DECEMBER 15

Darden Restaurants Reports Fiscal 2024 Second Quarter Results; Declares Quarterly Dividend; And Updates Fiscal 2024 Financial Outlook

Pitney Bowes Announces Continued Refreshment of its Board of Directors

Darden Restaurants to Host Fiscal 2024 Third Quarter Conference Call on March 21

Darden Restaurants Reports Fiscal 2024 Third Quarter Results; Declares Quarterly Dividend; Authorizes New $1 Billion Share Repurchase Program; And Updates Fiscal 2024 Financial Outlook

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