Sponsored By:

Restaurant Stock Looks Like a Tasty Pick

Darden Restaurants broke from a cup-and-handle helped by a breakaway gap

   

Darden Restaurants (NYSE:DRI) — This company operates almost 2,000 restaurants in the United States and Canada, including Red Lobster, Olive Garden, LongHorn Steakhouse, The Capital Grille and Bahama Breeze.

Recently, S&P raised DRI to a “buy” from “hold,” noting that it is selling at just 12.2 times their FY 2014 (ended May 31) estimate, which is below the industry average of 18.5%. They estimate earnings of $4.46 for FY 2014 and $3.92 for FY 2013. Their price target is $62.

Technically DRI broke from a 14-month cup-and-handle formation on Wednesday, which was helped by a breakaway gap. The price target is $64.

09 13 12 dri 300x206 Restaurant Stock Looks Like a Tasty Pick
Click to Enlarge

chart key 300x84 Restaurant Stock Looks Like a Tasty Pick


Article printed from InvestorPlace Media, http://investorplace.com/2012/09/trade-of-the-day-darden-restaurants-nyse-dri/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.