Darling (DAR) Soars 5.6%: Is Further Upside Left in the Stock?

Darling Ingredients DAR shares rallied 5.6% in the last trading session to close at $55.56. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 8.1% gain over the past four weeks.

Darling Ingredients has been gaining on optimism surrounding strong core ingredients performance and improving margins. Solid feed segment execution, robust demand for domestic fats and ongoing portfolio optimization are reinforcing confidence in its long-term growth outlook.

This producer of natural ingredients from edible and inedible bionutrients is expected to post quarterly earnings of $0.56 per share in its upcoming report, which represents a year-over-year change of +450%. Revenues are expected to be $1.55 billion, up 12.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Darling, the consensus EPS estimate for the quarter has been revised 22.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DAR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Darling is part of the Zacks Food - Miscellaneous industry. J&J Snack Foods JJSF, another stock in the same industry, closed the last trading session 1.7% lower at $82.91. JJSF has returned 2.1% in the past month.

J&J Snack Foods' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.38. Compared to the company's year-ago EPS, this represents a change of +8.6%. J&J Snack Foods currently boasts a Zacks Rank of #4 (Sell).

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