DRI Stock Analysis: Buy, Sell, or Hold?
DRI - Darden Restaurants, Inc.
$200.90
1.55 (0.78%)
▲
5d:
+2.28%
30d:
+9.17%
90d:
+12.74%
BUY
MODERATE Confidence
Last Updated: February 2, 2026
Earnings: Mar 19, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: DRI shows positive signals but monitor for confirmation. Market pricing in 0.4% annual growth which appears achievable. Moderate conviction.
💡 BUY OPPORTUNITY: DRI shows positive signals but monitor for confirmation. Market pricing in 0.4% annual growth which appears achievable. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$263.42
Based on 5.9% avg growth
INTRINSIC VALUE TODAY
$163.56
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 17.4x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DRI is currently trading at $200.90, which is considered fair relative to its 30-day fair value range of $191.31 to $208.59. The stock's valuation (Forward PE: 17.6) is in line with its historical norms (17.4). At these levels, the market is pricing in 0.4% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, DRI is showing sideways momentum. Immediate support is located at $194.52, while resistance sits at $214.97.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $222.38 (+10.7%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DRI is showing sideways momentum. Immediate support is located at $194.52, while resistance sits at $214.97.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $222.38 (+10.7%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Fair Price Range
$191.31 -
$208.59
Company Quality Score
56/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
71.0%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($222.38)
- NEUTRAL: Market pricing in 0.4% annual earnings growth - fairly valued
Fair Price Analysis
30-Day Fair Range
$191.31 -
$208.59
Current vs Fair Value
FAIR
Support & Resistance Levels
Support Level
$194.52
Resistance Level
$214.97
Current Trend
Sideways
Fundamental Context
Forward P/E (Next Year Est.)
17.63
Wall Street Target
$222.38
(+10.7%)
Revenue Growth (YoY)
7.3%
Earnings Growth (YoY)
11.8%
Profit Margin
8.9%
Valuation Premium vs History
+0.4% premium
PE vs Historical
17.6 vs 17.4
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+0.4%
(market-implied from PE analysis)
1-Year Target
$201.70
(+0%)
2-Year Target
$202.51
(+1%)
3-Year Target
$203.32
(+1%)
3-Yr Target (if PE normalizes)
(PE: 18→17)
PE COMPRESSION
$200.71
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 7.7%)
$317.35
(+58%)
Base:
(SPY PE: 17.6, Growth: 7.7%)
$250.84
(+25%)
Bear:
(PE: 15.0, Growth: 7.7%)
$213.21
(+6%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (21x PE), but valuation improves significantly next year (18x PE) as earnings recover.
Trailing PE: 20.87 | Current EPS (TTM): $9.55
Bull Case
$261.71
(+30%)
Analyst growth 19.3%, PE expands to 23.0
Base Case
$237.92
(+18%)
Market implied 19.3%, PE stable at 20.9
Bear Case
$135.56
(-33%)
Severe decline -20.0%, PE contracts to 17.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Last updated: February 03, 2026 4:38 AM ET
Data refreshes hourly during market hours. Next update: 5:38 AM
Data refreshes hourly during market hours. Next update: 5:38 AM
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Technical Signals Check
Is DRI showing a specific setup today?
Insider Activity (6 Months)
1
Buys
1
Sells
0
Net
INSIDERS SELLING
Recent Transactions
Matthew R Broad
SELL
5661 shares
2025-10-06
Lisa C. McClain
BUY
2025-09-25
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Professional options setups generated by AI based on today's DRI price and gamma walls.
