Darden Restaurants is Yahoo Finance Plus’ investment idea of the day

Yahoo Finance’s Jared Blikre reports details on Yahoo Finance’s Investment idea of the day.

Video transcript

- I want to pivot for a minute and talk about the Yahoo Finance Plus Investment Idea of the Day, which is a bullish call on Darden Restaurants after fourth-quarter earnings, right?

JARED BLIKRE: That's right. And let's get to the Wi-Fi interactive again, where we have Argus Research weighing in. I'll put up a year-to-date chart. You can see, still up 22% for the year, just kind of trying to reclaim these highs from a few months ago, but here's what Argus Research is saying.

And they are raising-- I don't think they're raising their price target. They keeping at 160, maintaining that buy. And I'll go through some of their reasoning here.

Darden showed strong improvement in fiscal fourth-quarter. Management expects further progress in the fiscal year '22. They go through some numbers there. We're raising our fiscal year 2022 earnings estimate to $7.50 from 6.50. And they're also setting a fiscal year '23 estimate of $8.60.

Finally, just wrapping up here, given prospects for improving comp sales and earnings, we think that DRI shares are undervalued at 18.4 times. Our revised EPS estimate for fiscal year '22 at the low end of the five-year historical range of 15 to 27. So wrapping up our discussion of all things Yahoo Finance Plus, that is the Investment Idea of the Day.