Darling Ingredients Inc. (DAR) Barclays 40th Annual Energy-Power Conference September 9, 2026 1:45 PM EDT
Company Participants
Randall Stuewe - Chairman & CEO
Robert Day - Executive VP & CFO
Conference Call Participants
Theresa Chen - Barclays Bank PLC, Research Division
Presentation
Theresa Chen
Barclays Bank PLC, Research Division
Good afternoon, everyone. Thank you so much for joining us. My name is Theresa Chen. I'm the midstream and refining analyst here at Barclays. It is my pleasure to introduce our next presenting company, Darling Ingredients. Joining me from Darling is Randy Stuewe, Chairman and CEO; and Bob Day, CFO.
Welcome.
Randall Stuewe
Chairman & CEO
Thank you.
Theresa Chen
Barclays Bank PLC, Research Division
Thank you very much for being here. This has been an interesting year for Darling to say the least. I would love to maybe start on the fuel side of things and ask about your near-term and medium-term margin outlook for the DGD assets. So given high RVOs out to 2027, limited renewable diesel imports and elevated petroleum fuel prices as a base case. How sustainable do you think the currently supportive margin backdrop is?
Question-and-Answer Session
Randall Stuewe
Chairman & CEO
Do you want to take it on to start. Okay. Yes. Thanks, Theresa. I think it is sustainable in the near term. We have a strong RVO, a strong mandate. That really provides a backdrop for solid margins. We see it today with the replacement margins in the industry. As you said, that RVO extends through 2027. There are still some details that need to be clarified. But as we go forward, we get more and more. Recently, we learned about small refinery exemptions for 2025. There's been sort of comments and suggestions about reallocations of those. But either way, the S&D balance for RINs is constructive and we think the margin outlook is quite positive.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Darling Ingredients (DAR - Free Report) . DAR is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.81, which compares to its industry's average of 15.46. DAR's Forward P/E has been as high as 18.57 and as low as 9.95, with a median of 13.51, all within the past year.
Another notable valuation metric for DAR is its P/B ratio of 1.08. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.06. Over the past 12 months, DAR's P/B has been as high as 1.49 and as low as 0.96, with a median of 1.21.
Value investors will likely look at more than just these metrics, but the above data helps show that Darling Ingredients is likely undervalued currently. And when considering the strength of its earnings outlook, DAR sticks out as one of the market's strongest value stocks.
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It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Darling Ingredients (DAR - Free Report) Darling Ingredients Inc. is a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients. The company serves customers across the pharmaceutical, food, pet food, animal feed, industrial, fuel, bioenergy and fertilizer markets. Founded in 1882, Darling is headquartered in Irving, Texas.
DAR is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Consumer Staples stock. DAR has a Momentum Style Score of A, and shares are up 3% over the past four weeks.
Three analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $2.48 to $6.98 per share. DAR also boasts an average earnings surprise of +38.9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DAR should be on investors' short list.
Shares of Darling Ingredients (DAR - Free Report) have gained 3% over the past four weeks to close the last trading session at $62.32, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $80.15 indicates a potential upside of 28.6%.
The mean estimate comprises 13 short-term price targets with a standard deviation of $9.57. While the lowest estimate of $65.00 indicates a 4.3% increase from the current price level, the most optimistic analyst expects the stock to surge 60.5% to reach $100.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in DAR. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why DAR Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 39.8%, as three estimates have moved higher compared to no negative revision.
Moreover, DAR currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much DAR could gain, the direction of price movement it implies does appear to be a good guide.
Bank of New York Mellon Corp bought a new position in Darling Ingredients Inc. (NYSE:DAR – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 1,162,462 shares of the company’s stock, valued at approximately $63,494,000. Bank of New York Mellon Corp owned approximately 0.73% of Darling Ingredients as of its most recent SEC filing.
Other hedge funds also recently modified their holdings of the company. Danske Bank A S acquired a new position in Darling Ingredients during the third quarter worth $25,000. Allworth Financial LP boosted its stake in shares of Darling Ingredients by 227.2% during the 4th quarter. Allworth Financial LP now owns 733 shares of the company’s stock worth $26,000 after acquiring an additional 509 shares in the last quarter. SJS Investment Consulting Inc. increased its holdings in shares of Darling Ingredients by 69.9% during the 1st quarter. SJS Investment Consulting Inc. now owns 423 shares of the company’s stock valued at $26,000 after acquiring an additional 174 shares during the last quarter. Litman Gregory Wealth Management LLC acquired a new position in shares of Darling Ingredients during the 4th quarter valued at about $29,000. Finally, Leonteq Securities AG bought a new position in shares of Darling Ingredients in the 4th quarter valued at approximately $35,000. Institutional investors and hedge funds own 94.44% of the company’s stock.
Analyst Upgrades and Downgrades DAR has been the subject of a number of recent analyst reports. Weiss Ratings raised Darling Ingredients from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, August 11th. Barclays lifted their price target on shares of Darling Ingredients from $62.00 to $65.00 and gave the company an “equal weight” rating in a research report on Monday, August 3rd. Jefferies Financial Group upped their price objective on shares of Darling Ingredients from $73.00 to $75.00 and gave the stock a “buy” rating in a report on Monday, May 4th. Wall Street Zen upgraded shares of Darling Ingredients from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 15th. Finally, Zacks Research upgraded shares of Darling Ingredients from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 19th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $69.00.
Read Our Latest Stock Analysis on Darling Ingredients Insider Transactions at Darling Ingredients In other news, EVP Nicholas James Kemphaus sold 1,591 shares of Darling Ingredients stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $63.05, for a total transaction of $100,312.55. Following the sale, the executive vice president owned 35,087 shares of the company’s stock, valued at approximately $2,212,235.35. This trade represents a 4.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Joseph Manzi sold 1,000 shares of the company’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $67.27, for a total value of $67,270.00. Following the completion of the transaction, the chief accounting officer owned 18,969 shares of the company’s stock, valued at $1,276,044.63. The trade was a 5.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 10,591 shares of company stock worth $704,303. Insiders own 1.90% of the company’s stock.
Darling Ingredients Price Performance Shares of Darling Ingredients stock opened at $62.56 on Thursday. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.56 and a quick ratio of 1.03. The company has a market cap of $9.87 billion, a PE ratio of 16.86 and a beta of 1.02. The firm has a fifty day moving average price of $60.31 and a two-hundred day moving average price of $58.68. Darling Ingredients Inc. has a fifty-two week low of $29.15 and a fifty-two week high of $69.98.
Darling Ingredients (NYSE:DAR – Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported $2.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.40 by $1.01. The company had revenue of $1.72 billion for the quarter, compared to the consensus estimate of $1.71 billion. Darling Ingredients had a net margin of 9.13% and a return on equity of 12.98%. The business’s revenue was up 16.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.08 EPS. Analysts expect that Darling Ingredients Inc. will post 6.98 EPS for the current year.
Darling Ingredients Company Profile (Free Report)
Darling Ingredients Inc (NYSE: DAR) is a global leader in converting edible and inedible bio-nutrient streams into sustainable food, feed ingredients, renewable fuels and specialty products. Founded in 1882 and headquartered in Irving, Texas, the company builds on more than a century of experience in animal rendering and by-product recycling. Over time, Darling has expanded its capabilities beyond traditional rendering to include advanced processing technologies that support a circular economy and reduce waste from food and agricultural industries.
The company’s core operations revolve around four primary segments: Feed Ingredients & Services, Food & Nutrition, Fuel Ingredients & Services, and Specialty Ingredients.
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Key Takeaways COCO, DAR, CNC, EXC and AMRX are highlighted as defensive stocks with upside.COCO and CNC have expected current-year earnings growth of more than 64%.DAR's earnings estimate rose 55.1%, while CNC's improved 40.9% over 60 days. The confidence level of Americans hit rock bottom in August. Growing concerns over sky-high inflation and the labor market outlook have been dampening their sentiment. Also, concerns have lately grown that oil prices could rise further and result in higher inflation, on fears that tensions in the Middle East continue for a longer period.
Markets have remained volatile for most of July and August, and investors are yet to get a clear picture of the Federal Reserve’s monetary path ahead.
Given this scenario, we recommend buying five defensive stocks from the consumer staples, healthcare and utilities sectors, namely, The Vita Coco Company, Inc. (COCO - Free Report) , Darling Ingredients Inc. (DAR - Free Report) , Centene Corporation (CNC - Free Report) , Exelon Corporation (EXC - Free Report) and Amneal Pharmaceuticals, Inc.(AMRX - Free Report) .
Consumer Sentiment Hits a New LowThe Conference Board said on Tuesday that its consumer confidence index fell to 89.4 in August, the lowest level since January, from a downwardly revised 90.2 a month earlier. The August reading was also sharply lower than the consensus estimate of 90.2.
Concerns have been growing about the economy’s health, as investors remain worried about inflation. A surge in oil prices after the war broke out between the United States and Iran in February saw inflation jump again.
In July, the consumer price index (CPI) increased 0.1% sequentially, while the core CPI, which strips out volatile food and energy prices, rose 0.2% in July. Year over year, CPI declined to 3.4% from 3.5% in June. Core CPI came in at 2.5% year over year, down 0.1% from the previous month.
However, inflation remains sharply above the Fed’s 2% target. Also, the labor market outlook has been a cause of concern. The decline in consumer confidence in August was triggered by a sharp decline in the expectations index. The expectations index slid 7.8%, which overshadowed the first rise in the current situation index since April.
These uncertainties could keep markets volatile for a longer period.
4 Defensive Stocks With UpsideThe Vita Coco CompanyThe Vita Coco Company, Inc. provides a beverage platform. COCO’s brands include coconut water, Vita Coco; clean energy drink Runa; sustainable enhanced water, Ever & Ever, and protein-infused water, PWR LIFT.
The Vita Coco Company’s expected earnings growth rate for the current year is 64.7%. The Zacks Consensus Estimate for current-year earnings has improved 11.4% over the past 60 days. COCO currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Darling IngredientsDarling Ingredients Inc. is a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients. DAR serves customers across the pharmaceutical, food, pet food, animal feed, industrial, fuel, bioenergy and fertilizer markets.
Darling Ingredients’expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 55.1% over the past 60 days. DAR currently has a Zacks Rank #2 (Buy).
Centene CorporationCentene Corporation is a well-diversified healthcare company that primarily provides a set of services to government-sponsored healthcare programs, while also serving under-insured and uninsured individuals through member-focused services. CNC is also engaged in providing education and outreach programs to inform and assist members in accessing quality, appropriate healthcare services. Centene operates a capitated managed-care model. Under this model, it receives a fixed payment per member per month from government programs such as Medicaid, Medicare and ACA Marketplace plans.
Centene Corporation has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 40.9% over the past 60 days. CNC currently carries a Zacks Rank #1.
Exelon CorporationExelon Corporation is focused solely on transmission and distribution operations. EXC will be serving more than 10 million customers through seven fully regulated transmission and distribution utilities — Atlantic City Electric Company, Baltimore Gas and Electric Company, Commonwealth Edison Company, Pepco Holdings LLC, Delmarva Power & Light Company, PECO Energy Company and Potomac Electric Power Company.
Exelon Corporation has an expected earnings growth rate of 3.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 60 days. EXC currently carries a Zacks Rank #2.
Amneal PharmaceuticalsAmneal Pharmaceuticals, Inc. is a diversified, global biopharmaceutical company that develops, manufactures, markets and distributes a broad portfolio of essential medicines. AMRX operates principally in the United States, India and Ireland, with executive offices in Bridgewater, NJ. Its platform spans generics, injectables, biosimilars and branded specialty medications.
Amneal Pharmaceuticals has an expected earnings growth rate of 22.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2% over the past 60 days. AMRX currently sports a Zacks Rank #1
Caisse de depot et placement du Quebec acquired a new position in shares of Darling Ingredients Inc. (NYSE:DAR – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 25,700 shares of the company’s stock, valued at approximately $1,404,000.
Other hedge funds and other institutional investors have also modified their holdings of the company. BlackRock Inc. purchased a new position in Darling Ingredients in the second quarter valued at $851,450,000. AIA Group Ltd purchased a new stake in Darling Ingredients during the 1st quarter worth about $4,453,000. Fideuram Asset Management Ireland dac acquired a new stake in Darling Ingredients in the 4th quarter valued at about $585,000. BNP Paribas Financial Markets raised its position in Darling Ingredients by 26.8% in the 4th quarter. BNP Paribas Financial Markets now owns 1,310,516 shares of the company’s stock valued at $47,179,000 after purchasing an additional 277,233 shares in the last quarter. Finally, Strs Ohio boosted its stake in shares of Darling Ingredients by 7,554.6% in the 1st quarter. Strs Ohio now owns 286,740 shares of the company’s stock valued at $17,735,000 after buying an additional 282,994 shares during the period. 94.44% of the stock is owned by institutional investors and hedge funds.
Insider Transactions at Darling Ingredients In related news, CAO Joseph Manzi sold 1,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $67.27, for a total transaction of $67,270.00. Following the transaction, the chief accounting officer owned 18,969 shares in the company, valued at $1,276,044.63. This trade represents a 5.01% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Charles L. Adair bought 1,000 shares of the business’s stock in a transaction dated Friday, July 31st. The stock was acquired at an average cost of $60.97 per share, for a total transaction of $60,970.00. Following the completion of the acquisition, the director directly owned 51,690 shares in the company, valued at approximately $3,151,539.30. This trade represents a 1.97% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have sold 10,591 shares of company stock worth $704,303. 1.90% of the stock is owned by corporate insiders.
Analyst Ratings Changes A number of analysts recently weighed in on the stock. JPMorgan Chase & Co. upped their target price on shares of Darling Ingredients from $78.00 to $79.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 12th. Weiss Ratings upgraded shares of Darling Ingredients from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, August 11th. Wall Street Zen upgraded shares of Darling Ingredients from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 15th. Zacks Research upgraded shares of Darling Ingredients from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 19th. Finally, Jefferies Financial Group raised their price target on Darling Ingredients from $73.00 to $75.00 and gave the company a “buy” rating in a research note on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, Darling Ingredients has an average rating of “Moderate Buy” and a consensus target price of $69.00. Get Our Latest Analysis on DAR
Darling Ingredients Trading Up 4.8% Shares of Darling Ingredients stock opened at $64.35 on Friday. The company has a current ratio of 1.56, a quick ratio of 1.03 and a debt-to-equity ratio of 0.73. The company has a fifty day simple moving average of $60.68 and a 200-day simple moving average of $58.81. The stock has a market cap of $10.15 billion, a price-to-earnings ratio of 17.35 and a beta of 1.02. Darling Ingredients Inc. has a 12-month low of $29.15 and a 12-month high of $69.98.
Darling Ingredients (NYSE:DAR – Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $2.41 EPS for the quarter, topping the consensus estimate of $1.40 by $1.01. Darling Ingredients had a net margin of 9.13% and a return on equity of 12.98%. The firm had revenue of $1.72 billion for the quarter, compared to analyst estimates of $1.71 billion. During the same period last year, the business earned $0.08 EPS. Darling Ingredients’s revenue for the quarter was up 16.4% compared to the same quarter last year. On average, equities analysts forecast that Darling Ingredients Inc. will post 6.98 EPS for the current fiscal year.
(Free Report)
Darling Ingredients Inc (NYSE: DAR) is a global leader in converting edible and inedible bio-nutrient streams into sustainable food, feed ingredients, renewable fuels and specialty products. Founded in 1882 and headquartered in Irving, Texas, the company builds on more than a century of experience in animal rendering and by-product recycling. Over time, Darling has expanded its capabilities beyond traditional rendering to include advanced processing technologies that support a circular economy and reduce waste from food and agricultural industries.
The company’s core operations revolve around four primary segments: Feed Ingredients & Services, Food & Nutrition, Fuel Ingredients & Services, and Specialty Ingredients.
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Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Darling Ingredients (DAR - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Darling Ingredients currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for DAR that show why this producer of natural ingredients from edible and inedible bionutrients shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For DAR, shares are up 12.84% over the past week while the Zacks Food - Miscellaneous industry is up 0.43% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7% compares favorably with the industry's 5.95% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Darling Ingredients have increased 13.79% over the past quarter, and have gained 113.2% in the last year. On the other hand, the S&P 500 has only moved 3.16% and 20.79%, respectively.
Investors should also pay attention to DAR's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. DAR is currently averaging 2,269,271 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with DAR.
Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost DAR's consensus estimate, increasing from $4.55 to $6.98 in the past 60 days. Looking at the next fiscal year, 4 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that DAR is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Darling Ingredients on your short list.
Key Takeaways Darling Ingredients' core ingredients adjusted EBITDA rose to $352.5M in Q2 from $206.9M a year earlier.Darling's DGD adjusted EBITDA share jumped to $389.2M, with EBITDA per gallon sold rising to $2.23.DAR's 2026 earnings estimate rose 55.1% in four weeks, while capacity and higher costs remain key offsets. Shares of Darling Ingredients Inc. (DAR - Free Report) have gained 12.8% in the past week, putting the durability of the move in focus. The rally is backed by a sharp improvement in core ingredients profitability and much stronger renewable-fuel economics.
Estimate revisions have also moved decisively higher. The question now is whether Darling can sustain those earnings drivers as capacity constraints, higher costs and a weaker momentum signal create offsets.
DAR's Core Earnings Base Looks StrongerCore ingredients adjusted EBITDA climbed to $352.5 million in the second quarter of 2026 from $206.9 million a year earlier. Contract management, commercial optimization, price-risk management and operating efficiencies are helping Darling extract more earnings from its existing asset base.
Management expects third-quarter core ingredients adjusted EBITDA of $325-$340 million. Excluding the second-quarter tariff recovery in Food, that outlook implies underlying earnings generally consistent with the elevated second-quarter level, supporting the case for a more durable core earnings base.
Darling's DGD Economics Add Another Earnings LiftDarling's share of Diamond Green Diesel adjusted EBITDA surged to $389.2 million from $42.6 million a year earlier. EBITDA per gallon sold rose to $2.23 from 34 cents, helped by higher Renewable Identification Number values, diesel prices, production tax credits and about $50.5 million of tariff recovery at the DGD entity level.
Valero Energy Corporation (VLO - Free Report) , Darling's partner in Diamond Green Diesel, also has direct exposure to the venture's renewable-diesel economics. Bunge Global SA (BG - Free Report) is relevant on the feedstock side, with its renewable-fuels partnerships and oilseed processing network positioning it in the same policy-driven demand chain.
DAR's Estimate Revisions Support the RallyThe Zacks Consensus Estimate for 2026 earnings has risen 55.1% in the past four weeks and 53.6% over the past 12 weeks. That magnitude of upward revision gives the recent stock-price advance a clearer earnings foundation.
Darling reported second-quarter earnings of $2.41 per share, compared with 8 cents a year earlier, and topped the consensus mark of $1.45. Continued estimate support will depend on core-margin execution and renewable-fuel economics holding up through the balance of the year.
Darling Still Faces Capacity and Cost PressureFeed raw material processed remained at 3.1 million metric tons in the second quarter, unchanged from both a year earlier and the first quarter. Darling is out of rendering capacity in Brazil, while faster U.S. poultry line speeds could put additional pressure on its processing network.
Selling, general and administrative expenses rose to $151 million from $138.1 million a year earlier, while acquisition and integration costs increased to $13.2 million from $3.4 million. If commodity prices or DGD margins retreat, those costs could limit operating leverage and cash conversion.
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DAR's Ratings Mix Supports Cautious OptimismDAR's 12.8% weekly rally has a solid earnings foundation, but continuation is not assured. Stronger core earnings, favorable DGD economics and sharply higher estimates are constructive, while throughput constraints and a higher expense base leave less room for weaker pricing or renewable-fuel margins.
DAR currently carries a Zacks Rank #1 (Strong Buy). It also has a VGM Score of A, Growth Score of A and Value Score of B, while its Momentum Score of D is the weaker signal. The favorable Rank and broader Style Score mix support the earnings case, but the Momentum Score argues for a measured view after the rapid weekly advance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways Darling Ingredients' share of DGD adjusted EBITDA jumped to $389.2 million in Q2 2026 from $42.6 million.DGD EBITDA per gallon sold rose to $2.23 from 34 cents as RIN values, diesel prices and tax credits improved.Management sees DGD margins through 2027 as attractive, but RINs, diesel and feedstock costs remain key. The finalized 2026-2027 Renewable Volume Obligation gives Darling Ingredients Inc. (DAR - Free Report) a supportive policy backdrop for Diamond Green Diesel ("DGD"). The mandate is intended to increase domestic feedstock demand and renewable-fuel production, conditions that have coincided with much stronger DGD economics.
The question is whether that support can carry through 2027. Recent results were unusually strong, but DGD still depends on Renewable Identification Number values, diesel pricing, feedstock costs and other market inputs.
DAR's DGD Earnings Jumped in the Second QuarterDarling's share of DGD adjusted EBITDA reached $389.2 million in the second quarter of 2026, up from $42.6 million a year earlier. Production increased to 355.9 million gallons, while EBITDA per gallon sold climbed to $2.23 from 34 cents.
The improvement gives DGD a much larger role in Darling's earnings profile. Valero Energy Corporation (VLO - Free Report) , Darling's 50/50 DGD partner, reports the venture within its Renewable Diesel segment and says DGD has about 1.2 billion gallons of annual production capacity.
Darling Sees RIN Tightness Supporting DGD MarginsManagement expects continued tightness in Renewable Identification Numbers (RINs) to remain supportive of renewable-fuel production and DGD margins. Higher RIN values, diesel prices and production tax credits all contributed to the second-quarter improvement.
Darling also believes the current Renewable Volume Obligation is appropriately sized when production increases, imports, small-refinery exemptions and normal deficit carryforwards are considered. Still, the company has said RINs need to remain supportive to keep incentivizing production and fulfill the mandate.
DAR's Production Outlook Keeps Scale in FocusDGD is expected to produce about 335 million gallons in the third quarter. Management views margins through 2027 as attractive under the current mandate, so maintaining high utilization remains an important part of the earnings opportunity.
Phillips 66 (PSX - Free Report) offers another renewable-fuels reference point. Its Rodeo Renewable Energy Complex has capacity of about 800 million gallons per year, and the company's second-quarter 2026 Renewable Fuels results benefited partly from higher regulatory credit pricing and renewable-fuels production.
Darling's DGD Upside Still Depends on Market InputsThe second quarter included about $50.5 million of favorable International Emergency Economic Powers Act tariff recovery at the DGD entity level. That benefit means the quarter should not be treated as a clean recurring run rate even though the underlying market environment improved substantially.
DGD profitability also remains exposed to renewable-fuel pricing, feedstock costs and broader market conditions. A softer RIN market, weaker diesel values or higher feedstock costs could narrow margins even if the policy framework continues supporting industry production.
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DAR's Ratings Back Growth but Flag MomentumPolicy support strengthens the DGD earnings case, but sustaining the second-quarter pace will require more than the Renewable Volume Obligation. RIN support, diesel values and feedstock economics need to remain favorable, while the tariff recovery makes the latest quarter an imperfect benchmark for future profitability.
DAR currently carries a Zacks Rank #1 (Strong Buy), along with a Growth Score of A, VGM Score of A and Value Score of B. Its Momentum Score of D is the weaker signal. The mix favors the earnings-growth and broader style case, but the momentum reading supports a measured view of near-term price timing. You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways DAR's Q2 EPS jumped to $2.41 from 8 cents, while the 2026 consensus estimate rose 55.1% in four weeks.Darling's core ingredients adjusted EBITDA rose to $352.5M, with Q3 guidance of $325M-$340M.DAR's DGD share of adjusted EBITDA hit $389.2M, but costs rose and Feed throughput stayed flat. Darling Ingredients Inc. (DAR - Free Report) has a stronger earnings profile entering the second half of 2026. Second-quarter earnings rose to $2.41 per share from 8 cents a year earlier, while the Zacks Consensus Estimate for 2026 earnings has increased 55.1% in the past four weeks.
The investment case still requires balance. A discounted valuation, stronger core profitability and favorable renewable-fuel economics support the upside case, but higher costs, flat Feed throughput and rendering-capacity constraints raise the execution bar.
DAR's Valuation Leaves Room for UpsideDAR trades at 10.04X forward 12-month EPS, below the Zacks sub-industry's 15.03X and its own five-year median of 11.85X. The discount leaves room for revaluation if recent earnings improvement proves durable.
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The stock has already gained 117.3% in the past year, so valuation alone is not enough to remove risk. Continued upside would likely require core margins and renewable-fuel economics to remain supportive as investors reassess the sustainability of 2026 earnings.
Darling's Core EBITDA Supports the Growth CaseCore ingredients adjusted EBITDA reached $352.5 million in the second quarter, up from $206.9 million a year earlier. Contract management, commercial optimization, price-risk management and operating efficiency helped lift earnings from the existing asset base.
Management expects core ingredients adjusted EBITDA of $325-$340 million in the third quarter. Excluding the second-quarter Food tariff recovery, that range implies underlying performance generally consistent with the elevated second-quarter level, which supports a more durable earnings case beyond one unusually strong period.
DAR's DGD Strength Raises Earnings PotentialDiamond Green Diesel ("DGD") produced 355.9 million gallons in the second quarter, while Darling's share of DGD adjusted EBITDA rose to $389.2 million from $42.6 million a year earlier. Management expects about 335 million gallons of third-quarter production and views margins through 2027 as attractive under the current renewable-fuel mandate.
Valero Energy Corporation (VLO - Free Report) is Darling's partner in DGD, giving it direct exposure to the same renewable-diesel venture. Bunge Global SA (BG - Free Report) , meanwhile, is expanding its role in renewable-fuels feedstocks through supply agreements and oilseed-processing investments, making it relevant to the broader feedstock and policy backdrop supporting renewable fuels.
Darling's Costs and Capacity Temper the SetupSelling, general and administrative expenses increased to $151 million in the second quarter from $138.1 million a year earlier. Acquisition and integration costs also rose to $13.2 million from $3.4 million, creating more pressure if commodity prices or DGD margins weaken.
Feed raw material processed remained at 3.1 million metric tons, unchanged from both the year-earlier quarter and the first quarter. Darling is out of rendering capacity in Brazil, while faster U.S. poultry line speeds could pressure its network, leaving future Feed growth more dependent on pricing, mix and execution.
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DAR's Ratings Favor Growth Over MomentumFor investors weighing whether to buy, hold or wait, DAR's setup remains constructive but not one-sided. The valuation discount, core earnings improvement and DGD contribution support the case, while rising expenses and constrained throughput make continued execution important.
DAR currently carries a Zacks Rank #1 (Strong Buy). It also has a Growth Score of A, VGM Score of A, and Value Score of B, which are favorable when paired with a top Zacks Rank. The Momentum Score of D is the weaker signal, suggesting the stock's current support is stronger on growth, value and blended characteristics than on near-term momentum. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways DAR, SBLK, AVT and DKL qualified a screen for high earnings yield and buy-rated value stocks.Earnings yield above 10% was paired with EPS growth, liquidity and price filters to find value picks.The four picks show projected 2026 sales and EPS growth, with estimates rising over recent weeks. The U.S.-Israel war with Iran, now nearly six months old, remains unresolved. A 60-day U.S.-Iran memorandum meant to produce a broader peace deal expired Monday with no agreement reached. Talks stalled, and both sides escalated instead.
Trump demanded Iran "raise white flag" and threatened to bomb Oman if it interfered with reopening the Strait of Hormuz, while Iran continued attacks that have kept traffic through the strait at a virtual standstill. Neither side shows signs of backing down.
Prolonged conflict has disrupted oil flow through Hormuz and resulted in a spike in oil prices. Add today's Fed minutes, and markets face compounding uncertainty from both geopolitics and monetary policy.
In this environment, value investing, which favors fundamentally sound, undervalued assets over speculative bets, offers a more prudent approach than chasing momentum.Value investors can consider stocks such as Darling Ingredients Inc. (DAR - Free Report) , Avnet, Inc. (AVT - Free Report) , Delek Logistics Partners, LP (DKL - Free Report) and Star Bulk Carriers (SBLK - Free Report) , which have high earnings yield.
Unlock Portfolio Value With Earnings Yield MetricOne metric widely used by value investors to identify potentially undervalued stocks is earnings yield. Calculated by dividing a company’s annual earnings per share by its current stock price, earnings yield indicates the amount of earnings generated for every dollar invested in a stock. Generally, a higher earnings yield suggests a stock may be undervalued relative to its earnings potential, while a lower earnings yield can indicate a richer valuation.
Earnings yield also provides a useful way to compare stocks with fixed-income investments such as bonds. When a stock’s earnings yield exceeds prevailing bond yields, it may offer a more attractive return potential, making it a valuable tool for investors searching for opportunities in an uncertain market.
Setting the Right FiltersWe have set an Earnings Yield greater than 10% as our primary screening criterion, but it alone cannot be used for picking stocks that have the potential to generate solid returns. So, we have added the following parameters to the screen:
Estimated EPS growth for the next 12 months greater than or equal to the S&P 500: This metric compares the 12-month forward EPS estimate with the 12-month actual EPS.
Average Daily Volume (20 Day) greater than or equal to 100,000: High trading volume implies that a stock has adequate liquidity.
Current Price greater than or equal to $5.
Buy-Rated Stocks: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have been known to outperform peers in any type of market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our PicksHere we have discussed four of the 27 stocks that qualified the screening:
Darling Ingredients is a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients.The Zacks Consensus Estimate for DAR’s 2026 sales and EPS implies year-over-year growth of 13% and 926%, respectively. EPS estimates for the current and next year have moved up by $2.48 and $1.13, respectively, over the past 30 days. Darling Ingredients currently sports a Zacks Rank #1 and has a Value Score of B.
Avnet is one of the world’s largest distributors of electronic components and computer products. The Zacks Consensus Estimate for AVT’s fiscal 2027 sales and EPS implies year-over-year growth of 15% and 70%, respectively. EPS estimates for the current and next fiscal have moved up by $2.36 and $3.16, respectively, over the past 30 days. Avnet currently sports a Zacks Rank #1 and has a Value Score of B.
Delek Logistics offers pipeline, transportation and other services for crude oil, refined products and natural gas in the United States. The Zacks Consensus Estimate for DKL’s 2026 sales and EPS implies year-over-year growth of 38% and 19%, respectively. EPS estimates for the current and next year have moved up by 8 cents and $1.59, respectively, over the past 30 days. Delek Logistics currently sports a Zacks Rank #1 and has a Value Score of B.
Star Bulk is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. The Zacks Consensus Estimate for SBLK’s 2026 sales and EPS implies year-over-year growth of 36% and 361%, respectively. EPS estimates for the current and next year have moved up by 57 cents and 39 cents, respectively, over the past 30 days. Star Bulk currently sports a Zacks Rank #1 and has a Value Score of B.
Key Takeaways COCO, DAR, WLY and ADM are four consumer staples stocks recommended as sentiment declines.COCO's expected earnings growth is 64.7%, while its current-year estimate rose 11.4%.DAR's earnings growth tops 100%, with its current-year estimate up 53% in 60 days. Americans are not as confident about the economy as they were till some time back. Rising cost of living, high inflation and ongoing geopolitical tensions in the Middle East have been denting consumer sentiment.
Markets have remained volatile over the past two months, and investors are still unsure about the Federal Reserve’s future monetary path.
Given this scenario, we recommend buying four defensive stocks from the consumer staples sector, namely, The Vita Coco Company, Inc. (COCO - Free Report) , Darling Ingredients Inc. (DAR - Free Report) , John Wiley & Sons, Inc. (WLY - Free Report) and Archer-Daniels-Midland Company (ADM - Free Report) .
Consumer Sentiment DeclinesThe University of Michigan's Surveys of Consumers reported last week that its Consumer Sentiment Index declined to 51 in August from 55.2 in the prior month. The August reading also fell short of economists’ expectations of a reading of 54.5.
This is also the first time that consumer sentiment has deteriorated in three months. Consumer expectations for inflation over the next 12-month period rose to 4.3% in August from 4.2% in July. The five-year, or long-term inflation expectations index remained unchanged at 3.3%.
Growing concerns over the economy’s health have been denting consumer sentiment. Inflation eased over the past two months but remains sharply above the Federal Reserve’s 2% target. Oil prices have eased lately after surging more than 40%, following the start of the Middle East conflict earlier this year.
However, energy prices are still a lot higher. Also, the conflict between the United States and Iran is far from over, as there are no concrete signs of negotiations between the two warring nations.
The Federal Reserve left interest rates unchanged at the end of its FOMC meeting in July. The central bank is likely to go for a 25-basis point interest rate hike this year, but uncertainty remains over the timing. Markets have remained volatile for a while, and this could continue for a longer period if the uncertainty continues and consumer sentiment remains low.
4 Consumer Staples Stocks With UpsideThe Vita Coco CompanyThe Vita Coco Company, Inc. provides a beverage platform. COCO’s brands include coconut water, Vita Coco; clean energy drink Runa; sustainable enhanced water, Ever & Ever, and protein-infused water, PWR LIFT.
The Vita Coco Company’s expected earnings growth rate for the current year is 64.7%. The Zacks Consensus Estimate for current-year earnings has improved 11.4% over the past 60 days. COCO currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Darling IngredientsDarling Ingredients Inc. is a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients. DAR serves customers across the pharmaceutical, food, pet food, animal feed, industrial, fuel, bioenergy and fertilizer markets.
Darling Ingredients’expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 53% over the past 60 days. DAR currently has a Zacks Rank #1.
John Wiley & SonsJohn Wiley & Sons, Inc. is a global provider of knowledge and knowledge-enabled services that improve outcomes in areas of research, professional practice and education. Through the Research segment, WLY provides digital and print scientific, technical, medical and scholarly journals, reference works, books, database services, and advertising.
John Wiley & Sons has an expected earnings growth rate of 14.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 90 days. Currently, WLY has a Zacks Rank #2.
Archer-Daniels-Midland CompanyArcher-Daniels-Midland Company is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products. ADM processes oilseeds, corn, wheat, cocoa and other feedstuffs. It also engages in the manufacturing, sale, and distribution of products like natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products, as well as other specialty food and feed ingredients.
Archer-Daniels-Midland Company has an expected earnings growth rate of 52.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.2% over the last 90 days. ADM has a Zacks Rank #1 at present.
On August 13, 2026, Darling Ingredients Inc (DAR) shares rose 3.6% to a current price of $65.74. The stock has performed well in the short term, with a 52-week
IRVING, Texas--(BUSINESS WIRE)--Darling Ingredients Inc. (NYSE: DAR) today announced an agreement to sell approximately $150 million of production tax credits to a corporate buyer. These credits were generated under the Inflation Reduction Act (IRA) by the company’s Diamond Green Diesel joint venture. The proceeds of the sale are scheduled to be received by the end of the third quarter, upon satisfaction of certain funding conditions.
About Diamond Green Diesel
Diamond Green Diesel (DGD) is a 50/50 joint venture between Darling Ingredients Inc. and Valero Energy Corporation. With capacity to produce more than 1.2 billion gallons annually, DGD is one of the world’s largest producers of renewable diesel and sustainable aviation fuel.
About Darling Ingredients
A pioneer in circularity, Darling Ingredients Inc. (NYSE: DAR) takes material from the animal agriculture and food industries, and transforms them into valuable ingredients that nourish people, feed animals and crops, and fuel the world with renewable energy. The company operates over 260 facilities in more than 15 countries and processes about 15% of the world’s animal agricultural by-products, produces about 30% of the world’s collagen (both gelatin and hydrolyzed collagen), and is one of the largest producers of renewable energy. To learn more, visit darlingii.com. Follow us on LinkedIn.
This release may contain “forward-looking statements,” which include information concerning the Company’s financial performance, plans, objectives, goals, strategies, future earnings, cash flow, performance and other information that is not historical information. When used in this release, the words “expects,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “will” and variations of such words or similar expressions are intended to identify forward-looking statements. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these beliefs will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the results expressed or implied by the forward-looking statements contained in this release. These include issues related to administration, guidance and/or regulations associated with biofuel policies, including the Section 45Z Clean Fuel Production Credit, and risks associated with the qualification and sales of such credits, including without limitation failure to satisfy closing conditions to complete such sales. Numerous other factors, many of which are beyond the Company’s control, could cause actual results to differ materially from those expressed as forward-looking statements. Other risk factors include those that are discussed in the Company’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Darling Ingredients (DAR - Free Report) is a stock many investors are watching right now. DAR is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value.
We should also highlight that DAR has a P/B ratio of 1.08. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. DAR's current P/B looks attractive when compared to its industry's average P/B of 1.74. DAR's P/B has been as high as 1.49 and as low as 0.96, with a median of 1.21, over the past year.
Finally, investors should note that DAR has a P/CF ratio of 8.39. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.09. DAR's P/CF has been as high as 10.37 and as low as 5.83, with a median of 7.70, all within the past year.
Another great Food - Miscellaneous stock you could consider is Kraft Heinz Company (KHC - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Kraft Heinz Company is currently trading with a Forward P/E ratio of 10.08 while its PEG ratio sits at 3.03. Both of the company's metrics compare favorably to its industry's average P/E of 14.70 and average PEG ratio of 1.60.
Over the last 12 months, KHC's P/E has been as high as 11.95, as low as 9.33, with a median of 10.47, and its PEG ratio has been as high as 3.81, as low as 2.94, with a median of 3.30.
Additionally, Kraft Heinz Company has a P/B ratio of 0.75 while its industry's price-to-book ratio sits at 1.74. For KHC, this valuation metric has been as high as 0.90, as low as 0.61, with a median of 0.76 over the past year.
These are only a few of the key metrics included in Darling Ingredients and Kraft Heinz Company strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DAR and KHC look like an impressive value stock at the moment.
IRVING, Texas--(BUSINESS WIRE)---- $DAR--Darling Ingredients Inc. (NYSE: DAR) today announced that the Board of Directors has refreshed and increased its share repurchase program to $1 billion. “As our balance sheet continues to strengthen and cash generation accelerates, we have the flexibility to invest in our business, pursue attractive organic growth opportunities and return capital to our shareholders,” said Randall C. Stuewe, Chairman and Chief Executive Officer. “This share repurchase program ref.
California State Teachers Retirement System lifted its holdings in Darling Ingredients Inc. (NYSE:DAR – Free Report) by 23.2% during the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 183,095 shares of the company’s stock after buying an additional 34,429 shares during the period. California State Teachers Retirement System owned approximately 0.12% of Darling Ingredients worth $11,324,000 at the end of the most recent reporting period.
Several other institutional investors also recently modified their holdings of the business. SJS Investment Consulting Inc. grew its stake in Darling Ingredients by 69.9% in the 1st quarter. SJS Investment Consulting Inc. now owns 423 shares of the company’s stock valued at $26,000 after purchasing an additional 174 shares during the period. Allworth Financial LP raised its stake in shares of Darling Ingredients by 227.2% during the 4th quarter. Allworth Financial LP now owns 733 shares of the company’s stock worth $26,000 after purchasing an additional 509 shares during the period. Cedar Mountain Advisors LLC bought a new stake in shares of Darling Ingredients during the 1st quarter worth $47,000. Litman Gregory Wealth Management LLC bought a new position in Darling Ingredients during the fourth quarter valued at about $29,000. Finally, Danske Bank A S bought a new position in Darling Ingredients during the third quarter valued at about $25,000. 94.44% of the stock is owned by institutional investors.
Darling Ingredients Stock Down 1.4% Darling Ingredients stock opened at $59.76 on Tuesday. Darling Ingredients Inc. has a 1-year low of $29.15 and a 1-year high of $66.02. The firm has a market capitalization of $9.50 billion, a price-to-earnings ratio of 16.11 and a beta of 1.02. The company has a current ratio of 3.89, a quick ratio of 1.03 and a debt-to-equity ratio of 0.13. The firm has a 50 day simple moving average of $58.53 and a 200 day simple moving average of $56.26.
Darling Ingredients (NYSE:DAR – Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $2.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.40 by $1.01. Darling Ingredients had a return on equity of 13.23% and a net margin of 9.13%.The firm had revenue of $1.72 billion for the quarter, compared to the consensus estimate of $1.71 billion. During the same quarter in the prior year, the business posted $0.08 earnings per share. The business’s quarterly revenue was up 16.4% on a year-over-year basis. On average, analysts predict that Darling Ingredients Inc. will post 5.34 earnings per share for the current year.
Wall Street Analyst Weigh In A number of analysts recently issued reports on the stock. TD Cowen raised their price objective on shares of Darling Ingredients from $70.00 to $80.00 and gave the stock a “buy” rating in a report on Monday, July 27th. Scotiabank boosted their target price on shares of Darling Ingredients from $61.00 to $70.00 and gave the company a “sector outperform” rating in a research note on Wednesday, April 22nd. Stephens increased their target price on shares of Darling Ingredients from $65.00 to $70.00 and gave the company an “overweight” rating in a research report on Tuesday, April 21st. Barclays raised their price target on shares of Darling Ingredients from $62.00 to $65.00 and gave the stock an “equal weight” rating in a research note on Monday. Finally, Robert W. Baird lifted their price target on shares of Darling Ingredients from $64.00 to $75.00 and gave the stock an “outperform” rating in a report on Tuesday, April 7th. Ten equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat, Darling Ingredients has an average rating of “Moderate Buy” and an average price target of $69.00.
Get Our Latest Stock Analysis on Darling Ingredients
Insider Activity In related news, Director Charles L. Adair acquired 1,000 shares of the firm’s stock in a transaction that occurred on Friday, July 31st. The shares were bought at an average cost of $60.97 per share, for a total transaction of $60,970.00. Following the purchase, the director owned 51,690 shares in the company, valued at $3,151,539.30. This trade represents a 1.97% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 1.90% of the company’s stock.
Darling Ingredients Profile (Free Report)
Darling Ingredients Inc (NYSE: DAR) is a global leader in converting edible and inedible bio-nutrient streams into sustainable food, feed ingredients, renewable fuels and specialty products. Founded in 1882 and headquartered in Irving, Texas, the company builds on more than a century of experience in animal rendering and by-product recycling. Over time, Darling has expanded its capabilities beyond traditional rendering to include advanced processing technologies that support a circular economy and reduce waste from food and agricultural industries.
The company’s core operations revolve around four primary segments: Feed Ingredients & Services, Food & Nutrition, Fuel Ingredients & Services, and Specialty Ingredients.
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Darling Ingredients (DAR - Free Report) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.
Analysts' growing optimism on the earnings prospects of this producer of natural ingredients from edible and inedible bionutrients is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Consensus earnings estimates for the next quarter and full year have moved considerably higher for Darling Ingredients, as there has been strong agreement among the covering analysts in raising estimates.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe company is expected to earn $1.63 per share for the current quarter, which represents a year-over-year change of +1,258.3%.
Over the last 30 days, two estimates have moved higher for Darling while one has gone lower. As a result, the Zacks Consensus Estimate has increased 34.71%.
Current-Year Estimate RevisionsFor the full year, the company is expected to earn $5.34 per share, representing a year-over-year change of +685.3%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Darling. Over the past month, three estimates have moved higher compared to one negative revision, helping the consensus estimate increase 14.16%.
Favorable Zacks RankOur research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineWhile strong estimate revisions for Darling have attracted decent investments and pushed the stock 7.3% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
Key Takeaways DAR's Q2 EPS jumped to $2.41 from 8 cents, while sales rose 16.4% to about $1.72 billion. DGD sold 348.8 million gallons at EBITDA of $2.23 per gallon, driving fuel segment gains. DAR cut net debt by $223 million, repurchased $73 million in stock and improved leverage to 2.3 times. Darling Ingredients Inc. (DAR - Free Report) delivered a strong second quarter as improved finished-product markets, disciplined margin management and robust renewable-fuel economics lifted profitability. The company also generated substantial cash, supporting debt reduction and share repurchases.
DAR’s earnings were $2.41 per share, up sharply from 8 cents a year ago, surpassing the Zacks Consensus Estimate of $1.45.
Net sales increased 16.4% year over year to around $1,724 million but missed the consensus mark of $1,804 million. Diamond Green Diesel, or DGD, sold 348.8 million gallons at EBITDA of $2.23 per gallon.
DAR's Profit and Margin PictureGross profit increased 45.5% year over year to $503.4 million. The gross margin expanded 590 basis points to 29.2%, reflecting stronger fat and protein markets, favorable renewable-fuel economics and improved operational execution.
Selling, general and administrative expenses rose 9.3% to $151 million. Results also included $13.2 million of acquisition and integration costs and $3.9 million of restructuring and asset-impairment charges. Combined adjusted EBITDA surged to $741.7 million from $249.5 million in the year-ago quarter.
Operating income advanced to $555.2 million from $75.9 million. The increase included $350 million of equity income from DGD.
Darling's Segment PerformanceFeed Ingredients net sales increased 22.7% to $1,149.5 million. Fat prices strengthened on robust biofuel-sector demand, while protein values benefited from increased U.S. poultry production and tight global fish-meal supplies. Segment adjusted EBITDA jumped 77% to $240.5 million, while raw material processed remained steady at 3.1 million metric tons.
Food Ingredients net sales rose 5.8% to $408.5 million. Growing collagen demand in the United States, Europe and Asia supported sales, along with broader uses across food, nutrition and health products. Segment adjusted EBITDA increased 55.1% to $108.5 million. The result included about $18 million of net IEEPA tariff recovery.
Fuel Ingredients net sales increased 4.6% to $166.1 million. Combined segment adjusted EBITDA climbed to $415.2 million from $61.3 million, primarily reflecting DGD’s performance. Darling’s share of DGD adjusted EBITDA was $389.2 million, up from $42.6 million. DGD produced 355.9 million gallons during the quarter.
DAR's Cash Flow and Leverage PositionDAR ended the quarter with $160.7 million in cash and cash equivalents, total debt of roughly $3.95 billion and net debt of $3.79 billion. During the second quarter of 2026, the company reduced net debt by $223 million and repurchased $73 million of common stock.
Revolver availability was $1.31 billion as of July 4, 2026. The preliminary leverage ratio under the company’s bank covenant improved to 2.3 times from 2.9 times at the beginning of 2026.
Darling's Portfolio Actions Support StrategyDuring the quarter, Darling completed the acquisition of three rendering facilities from the Patense Group in Brazil for approximately $122 million. Management expects the assets to support its rendering network and contribute immediately to earnings.
Following the quarter, the company sold a majority of its non-core grease-trap environmental services business for approximately $90 million. Darling also signed an agreement to divest its CTH casings business, with the transaction expected to close by the end of 2026.
These actions reflect management’s focus on simplifying the portfolio, improving returns from existing infrastructure and allocating capital toward higher-value operations.
Darling's OutlookFor the third quarter of 2026, management expects core ingredients adjusted EBITDA of $325-$340 million. Excluding the second-quarter Food segment tariff recovery, the forecast indicates underlying performance generally consistent with the strong second-quarter level.
DGD is expected to produce approximately 335 million gallons in the third quarter.
DAR expects to end 2026 with net debt at or below $3 billion and a bank leverage ratio below 2 times.
This Zacks Rank #2 (Buy) stock has rallied 28.8% over the past six months compared with the industry’s 0.1% growth.
Other Top-Ranked Stocks to ConsiderUnited Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
The consensus estimate for United Natural’s current fiscal-year earnings per share (EPS) stands at $2.52, which implies substantial growth from the year-ago period earnings of 71 cents. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.
US Foods Holding Corp. (USFD - Free Report) engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2. US Foods Holding delivered a trailing four-quarter earnings surprise of 1.4%, on average.
The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.1% and 16.3%, respectively, from the year-ago figures.
The Vita Coco Company, Inc. (COCO - Free Report) , a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and earnings calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.
Golden Cross Alert: 3 Stocks With Major Upside PotentialDarling Ingredients NYSE: DAR reported sharply higher second-quarter earnings and cash generation, citing stronger finished-product markets, rising fat and protein prices, operational improvements and favorable trade-related developments.
Net income rose to $387 million, or $2.41 per diluted share, from $13 million, or $0.08 per diluted share, in the second quarter of 2025. Net sales increased to $1.7 billion from $1.5 billion a year earlier. Combined adjusted EBITDA reached approximately $742 million, compared with $250 million in the prior-year period.
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Darling Ingredients In Buy Range After Q2 Earnings ReportFor the first six months of 2026, Darling reported net income of $521.6 million, or $3.24 per diluted share, compared with a net loss of $13.5 million, or $0.09 per share, a year earlier. First-half net sales totaled $3.3 billion, while combined adjusted EBITDA exceeded $1.1 billion, up from slightly less than $450 million in the prior-year period.
Core ingredients earnings improve Darling’s global ingredients business generated approximately $353 million in adjusted EBITDA during the quarter, up from $207 million a year earlier and $256 million in the first quarter. Chairman and Chief Executive Officer Randall C. Stuewe attributed the improvement to global operating performance, margin expansion and commercial execution.
The 10 Top-Rated Stocks by Wall Street Analysts in August 2021The company said its Feed Ingredients segment benefited from higher fat prices, supported by demand from the biofuel sector, while protein values improved amid tighter global fish meal supplies and increased U.S. poultry production. Stuewe said demand for proteins remained strong across regions and that he did not see factors likely to interrupt that trend through the remainder of the year.
Darling also cited work on operational efficiency, commercial optimization, price-risk management and contract management as contributors to higher gross margins. During the quarter, the company completed the acquisition of three rendering facilities from Potenze Group in Brazil. The assets were acquired for approximately $122 million and are expected to be immediately accretive, according to management.
Chief Financial Officer Bob Day said the company continues to pursue an initiative outlined at its May investor day intended to add $150 million to $300 million in adjusted EBITDA over three years through contract improvements, commercial optimization and a more targeted approach to managing price risk.
Food segment emphasizes collagen mix In the Food segment, Darling said collagen sales increased year over year as demand grew across food, nutrition and health applications. Management said higher whey prices have led some companies to use collagen as a complementary protein ingredient.
Day said collagen currently produces roughly 2.5 times to three times the margin of gelatin, while targeted ingredients can produce seven to 11 times the margin. Darling is seeking to increase its mix of collagen and targeted health products, including the Nextida portfolio, while using existing Rousselot production infrastructure.
Stuewe said Nextida’s glucose-control product is generating repeat sales and is now being sold in Asia. He also said the company expects to launch and rename a Nextida Brain product after clinical trials. Darling has approved a spray-drying project for collagen in Kaiping, China, and plans to add extraction and spray-drying capacity in Paraguay.
Diamond Green Diesel drives earnings and cash flow Diamond Green Diesel, Darling’s renewable diesel venture, contributed $389 million of EBITDA to Darling during the second quarter, compared with $43 million in the same period last year. The business produced more than 1.3 million metric tons of renewable fuel and sold approximately 350 million gallons at EBITDA of $2.23 per gallon, according to Stuewe.
Day said DGD produced 356 million gallons during the quarter. Results included approximately $51 million in favorable recoveries related to IEEPA tariffs at the entity level. Darling said it received approximately $280 million in cash distributions from DGD, including about $211 million in dividends and $69 million from sales of 2025 production tax credits.
Management said renewable diesel margins remain attractive, with DGD expected to produce about 335 million gallons in the third quarter. Day said the company expects margins to more closely reflect spot-market conditions as markets stabilize, describing the current spot environment as healthy.
On renewable fuels policy, Day said Darling does not expect meaningful changes in small-refinery exemptions that would materially affect renewable identification number supply and demand. Management said the industry’s June production showed it could produce enough fuel to meet the mandate, though strong margins would need to persist to sustain that output.
Debt reduction and portfolio actions Darling used second-quarter cash generation to reduce debt by more than $220 million, repurchase $73 million of shares and fund the Potenze acquisition. The company’s leverage ratio improved to approximately 2.3 times at quarter-end from 2.9 times at the end of 2025.
The company expects net debt to be close to or below $3 billion by the end of 2026 and expects leverage to be well below two times. Management said that outlook reflects expected working-capital releases at DGD, expected sales of production tax credits in the second half, continued cash generation from core ingredients operations and portfolio divestitures.
Subsequent to quarter-end, Darling completed the sale of most of its trap business for approximately $90 million. It also signed an agreement to sell its European casings business, which it expects to close by the end of 2026.
Stuewe said the company is not pursuing another large acquisition and instead plans to focus over the next three to five years on organic expansion, debottlenecking, collagen growth and rendering capacity additions. Management said it could evaluate additional shareholder-return initiatives, including dividends and repurchases, after reaching its debt targets.
Third-quarter outlook Darling expects Core Ingredients adjusted EBITDA of $325 million to $340 million in the third quarter. Second-quarter results included roughly $18 million in net IEEPA tariff recoveries for the Rousselot business; excluding that benefit, management said the third-quarter outlook implies underlying performance generally consistent with the second quarter.
The company said it remains encouraged by growing poultry production, global demand for proteins and specialty products, and demand for low-carbon fuels. Stuewe said Darling sees momentum continuing through the remainder of 2026 and into 2027, though management acknowledged that commodity and renewable fuel markets can remain volatile.
About Darling Ingredients (NYSE:DAR)Darling Ingredients Inc NYSE: DAR is a global leader in converting edible and inedible bio-nutrient streams into sustainable food, feed ingredients, renewable fuels and specialty products. Founded in 1882 and headquartered in Irving, Texas, the company builds on more than a century of experience in animal rendering and by-product recycling. Over time, Darling has expanded its capabilities beyond traditional rendering to include advanced processing technologies that support a circular economy and reduce waste from food and agricultural industries.
The company's core operations revolve around four primary segments: Feed Ingredients & Services, Food & Nutrition, Fuel Ingredients & Services, and Specialty Ingredients.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Darling Ingredients Inc. (DAR) Q2 2026 Earnings Call July 30, 2026 9:00 AM EDT
Company Participants
Suann Guthrie - Senior Vice President of Investor Relations & Global Affairs
Randall Stuewe - Chairman & CEO
Robert Day - Executive VP & CFO
Conference Call Participants
Heather Jones - Heather Jones Research LLC
Manav Gupta - UBS Investment Bank, Research Division
Derrick Whitfield - Texas Capital Securities, Research Division
Andrew Strelzik - BMO Capital Markets Equity Research
Ben Kallo - Robert W. Baird & Co. Incorporated, Research Division
Conor Fitzpatrick - BofA Securities, Research Division
Matthew Blair - Tudor, Pickering, Holt & Co. Securities, LLC, Research Division
Jason Gabelman - TD Cowen, Research Division
Carla Casella - JPMorgan Chase & Co, Research Division
Presentation
Operator
Hello, everyone. Thank you for joining us, and welcome to the Darling Ingredients Inc. conference call to discuss the second quarter 2026 financial results. [Operator Instructions] I will now hand the conference over to Ms. Suann Guthrie, Senior Vice President of Investor Relations. Please go ahead.
Suann Guthrie
Senior Vice President of Investor Relations & Global Affairs
Thank you for joining the Darling Ingredients Second Quarter 2026 Earnings Call. Here with me today are Mr. Randall C. Stuewe, Chairman and Chief Executive Officer; and Mr. Bob Day, Chief Financial Officer. Our second quarter 2026 earnings news release and slide presentation are available on the Investor page of our corporate website, and it will be joined by a transcript of this call once it is available. You can also find reconciliations and disclosures with respect to non-GAAP financial measures in our earnings news release and slide presentation.
During this call, we'll be making forward-looking statements, which are predictions, projections or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could materially differ because of factors discussed in
Darling Ingredients (DAR - Free Report) reported $1.72 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 16.4%. EPS of $2.41 for the same period compares to $0.09 a year ago.
The reported revenue represents a surprise of -4.45% over the Zacks Consensus Estimate of $1.8 billion. With the consensus EPS estimate being $1.45, the EPS surprise was +66.21%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Darling performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Feed Ingredients: $1.15 billion compared to the $1.22 billion average estimate based on two analysts. The reported number represents a change of +22.7% year over year.Net Sales- Fuel Ingredients: $166.07 million compared to the $168.9 million average estimate based on two analysts. The reported number represents a change of +4.6% year over year.Net Sales- Food Ingredients: $408.51 million compared to the $417.92 million average estimate based on two analysts. The reported number represents a change of +5.8% year over year.Segment Adjusted EBITDA- Food Ingredients: $108.48 million compared to the $80.52 million average estimate based on two analysts.Segment Adjusted EBITDA- Corporate: $-22.41 million compared to the $-28.75 million average estimate based on two analysts.Segment Adjusted EBITDA- Fuel Ingredients: $25.97 million versus $27.04 million estimated by two analysts on average.Segment Adjusted EBITDA- Feed Ingredients: $240.5 million compared to the $222.77 million average estimate based on two analysts.View all Key Company Metrics for Darling here>>>
Shares of Darling have returned +3.6% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Darling Ingredients (DAR - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Staples sector should help us answer this question.
Darling Ingredients is one of 185 companies in the Consumer Staples group. The Consumer Staples group currently sits at #16 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Darling Ingredients is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for DAR's full-year earnings has moved 23.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, DAR has gained about 62.8% so far this year. At the same time, Consumer Staples stocks have gained an average of 12.7%. This means that Darling Ingredients is outperforming the sector as a whole this year.
Kraft Heinz (KHC - Free Report) is another Consumer Staples stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 13.9%.
In Kraft Heinz's case, the consensus EPS estimate for the current year increased 1.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Darling Ingredients belongs to the Food - Miscellaneous industry, a group that includes 45 individual stocks and currently sits at #214 in the Zacks Industry Rank. On average, stocks in this group have gained 5.2% this year, meaning that DAR is performing better in terms of year-to-date returns. Kraft Heinz is also part of the same industry.
Darling Ingredients and Kraft Heinz could continue their solid performance, so investors interested in Consumer Staples stocks should continue to pay close attention to these stocks.
Shares of Darling Ingredients (DAR - Free Report) have gained 3.6% over the past four weeks to close the last trading session at $58.62, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $77.62 indicates a potential upside of 32.4%.
The mean estimate comprises 13 short-term price targets with a standard deviation of $9.52. While the lowest estimate of $62.00 indicates a 5.8% increase from the current price level, the most optimistic analyst expects the stock to surge 70.6% to reach $100.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in DAR. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why DAR Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, three estimates have moved higher over the last 30 days while one has gone lower. As a result, the Zacks Consensus Estimate has increased 14.2%.
Moreover, DAR currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much DAR could gain, the direction of price movement it implies does appear to be a good guide.
IRVING, Texas--(BUSINESS WIRE)---- $DAR--Darling Ingredients Inc. (NYSE: DAR) today reported net income of $387.3 million or $2.41 per GAAP diluted share for the second quarter of 2026, compared to net income of $12.7 million, or $0.08 per GAAP diluted share, for the second quarter of 2025. The company also reported total net sales of $1.7 billion for the second quarter of 2026, compared with total net sales of $1.5 billion for the same period a year ago. “Momentum continues to build across our business.
Darling Ingredients (DAR - Free Report) came out with quarterly earnings of $2.41 per share, beating the Zacks Consensus Estimate of $1.45 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +66.21%. A quarter ago, it was expected that this producer of natural ingredients from edible and inedible bionutrients would post earnings of $0.56 per share when it actually produced earnings of $0.83, delivering a surprise of +48.21%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Darling, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $1.72 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 4.45%. This compares to year-ago revenues of $1.48 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Darling shares have added about 62.8% since the beginning of the year versus the S&P 500's gain of 6.9%.
What's Next for Darling?While Darling has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Darling was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.63 on $1.78 billion in revenues for the coming quarter and $5.34 on $6.94 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Flowers Foods (FLO - Free Report) , has yet to report results for the quarter ended June 2026.
This bakery goods company is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of -23.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Flowers Foods' revenues are expected to be $1.23 billion, down 1% from the year-ago quarter.
Key Takeaways Darling Ingredients' Q2 revenues are expected to rise 21.8% year over year to $1.8 billion. Higher fat and protein prices, strong poultry volumes and better product mix are set to support margins.Diamond Green Diesel is expected to produce about 320 million gallons near full capacity. Darling Ingredients Inc. (DAR - Free Report) is likely to witness a top-and bottom-line increase when it reports second-quarter 2026 earnings on July 30. The Zacks Consensus Estimate for revenues is pegged at $1.8 billion, suggesting growth of 21.8% from the year-ago period figure.
The consensus mark for earnings has risen from $1.28 to $1.45 over the past seven days, which implies substantial growth from 9 cents reported in the year-ago period. DAR has a trailing four-quarter surprise of 16.1%, on average.
Factors Likely to Influence DAR’s Upcoming ResultsDarling Ingredients’ second-quarter performance is likely to have benefited from a more favorable operating environment, improving commodity markets and continued operational execution across its global platform. Management expected earnings momentum to strengthen as 2026 progressed and projected core ingredients EBITDA of $260-$275 million for the quarter.
Higher fat and protein prices are expected to have supported revenues and margins, with the acceleration in North American fat prices beginning in March and expected to flow through during May and June. Strong poultry volumes, healthy global raw-material availability, improved product quality and sales into higher-value markets are likely to have provided additional support.
Growing collagen demand in Europe and Asia, broader applications across food, nutrition and health products, and favorable pricing and product mix are likely to have aided the Food business. Fuel results may also have increased sharply, as Diamond Green Diesel was expected to produce roughly 320 million gallons and operate near full capacity amid constructive renewable-diesel margins. Higher European energy prices may have supported non-DGD operations as well.
However, stagnant cattle supplies, commodity-price realization lags and early-quarter tariff-related pressure in Brazil may have limited some margin upside.
Earnings Whispers for DAROur proven model doesn’t conclusively predict an earnings beat for Darling Ingredients this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Darling Ingredients currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable CombinationHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Archer-Daniels-Midland Company (ADM - Free Report) currently has an Earnings ESP of +11.52% and a Zacks Rank of 2. The consensus estimate for ADM’s quarterly revenues is pinned at $22.4 billion, which calls for 5.7% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Archer-Daniels’ upcoming quarter’s EPS is pegged at $1.27, which implies a 36.6% rise year over year. ADM delivered a trailing four-quarter earnings surprise of 5.4%, on average.
Kimberly-Clark Corporation (KMB - Free Report) currently has an Earnings ESP of +1.43% and a Zacks Rank of 3. The Zacks Consensus Estimate for Kimberly-Clark’s upcoming quarterly revenues is pegged at $4.2 billion. The figure indicates a 1.7% increase from the prior-year quarter.
The Zacks Consensus Estimate for Kimberly-Clark’s quarterly earnings per share is pegged at $2.00, suggesting a 4.2% gain from the year-ago period figure. KMB delivered a trailing four-quarter earnings surprise of 19.1%, on average.
Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +2.61% and a Zacks Rank of 3. The consensus estimate for Monster Beverage’s quarterly revenues is pinned at $2.4 billion, which implies 14.5% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the upcoming quarter’s EPS is pegged at 59 cents, which calls for a 13.5% jump year over year. MNST delivered a trailing four-quarter earnings surprise of 9.6%, on average.
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Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
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Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
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How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Darling Ingredients (DAR - Free Report) Darling Ingredients Inc. is a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients. The company serves customers across the pharmaceutical, food, pet food, animal feed, industrial, fuel, bioenergy and fertilizer markets. Founded in 1882, Darling is headquartered in Irving, Texas.
DAR is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Consumer Staples stock. DAR has a Momentum Style Score of A, and shares are up 13.9% over the past four weeks.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.37 to $5.05 per share. DAR also boasts an average earnings surprise of +16.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, DAR should be on investors' short list.
Key Takeaways DAR's Food sales rose to $405 million, while adjusted EBITDA increased to $81 million.The PB Leiner-Tessenderlo venture could add collagen capacity, pending antitrust clearance.Renewable fuel mandates may support DGD margins and low-carbon feedstock demand through 2027. Darling Ingredients Inc. (DAR - Free Report) is becoming less dependent on traditional rendering economics as collagen, specialty nutrition and renewable fuels take larger roles in its earnings mix.
The shift offers a better growth profile, but it also raises execution demands. Regulatory approvals, capital allocation and leverage control will determine how much of these trends converts into steadier cash flow.
Darling Expands Its Collagen Growth PlatformDarling’s Food Ingredients segment gives the company a higher-margin channel beyond feed and fuel markets. Its Rousselot and Gelnex brands supply collagen-based ingredients used in food, pharmaceutical, nutraceutical and pet-food applications.
Demand remains tied to nutrition, health and functional food trends. In the first quarter of 2026, Food segment sales rose to $405 million from $349 million a year earlier, while adjusted EBITDA improved to $81 million from $71 million.
Image Source: Zacks Investment Research
DAR Pursues Scale Through a Collagen VentureThe proposed PB Leiner-Tessenderlo joint venture is central to Darling’s next step in collagen. The transaction could add production capacity and support more efficient raw-material sourcing.
Management has said the venture remains in an antitrust review process. That makes regulatory clearance a key condition before Darling can fully capture the expected benefits of a larger global collagen platform.
Darling Builds New Specialty Nutrition OptionsDarling is also investing in the Nextida portfolio of science-based functional ingredients. This initiative moves the company further into health and nutrition applications that are less tied to commodity-oriented rendering markets.
Nextida gives Darling another path to build value from technical expertise rather than only raw-material availability. The company has discussed product development around glucose-control applications, positioning the portfolio as a longer-term specialty nutrition opportunity.
Darling currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DAR Benefits From Renewable Fuel MandatesRenewable fuels remain a major earnings swing factor. The finalized 2026-2027 Renewable Volume Obligation created a more constructive operating backdrop for Diamond Green Diesel, Darling’s renewable diesel joint venture.
Management expects the industry to run hard through 2027 to meet mandated volumes. That backdrop could support renewable diesel and sustainable aviation fuel margins while increasing demand for low-carbon feedstocks.
Valero Energy Corporation (VLO - Free Report) , Darling’s partner in Diamond Green Diesel, remains a relevant comparison for investors watching renewable diesel economics. Its role in the joint venture links refining discipline with low-carbon fuel production.
Darling Captures Value Across the Supply ChainDarling’s integrated model is important because the company is exposed to both renewable-fuel production and feedstock supply. It can collect and process fats, used cooking oil and proteins, then direct those products to the highest-value markets.
That flexibility lets Darling benefit from policy-driven demand in more than one way. When renewable fuel economics improve, the company may gain through Diamond Green Diesel and through stronger demand for low-carbon inputs.
Bunge Global SA (BG - Free Report) also sits at the intersection of agricultural processing and biofuel-related demand. Bunge’s oilseed processing operations produce vegetable oils and protein meals for food, animal feed and biofuel markets, making it a useful sector reference for investors tracking feedstock economics.
DAR’s Trend Exposure Comes With Execution TestsThe bottom line is that DAR has attractive exposure to collagen growth and renewable fuel mandates, but those themes do not remove near-term risks. International volatility, regulatory review and elevated capital needs remain meaningful constraints.
Leverage also keeps the investment case balanced. Net debt was about $4 billion at the end of the first quarter of 2026, and management continues to target total debt of approximately $3 billion or less over time.
DAR carries a Neutral recommendation with a $66 price target. That view fits a company with improving long-term trend exposure but unresolved execution and balance-sheet questions.
No Zacks Rank or Style Scores are provided. Without those inputs, investors cannot make a report-grounded assessment of DAR’s value, growth or momentum factor profile and should focus instead on cash generation, leverage reduction and execution against the collagen and renewable-fuel opportunities.
Key Takeaways DAR's sales rose 12.3%, while adjusted EBITDA more than doubled to $406.8 million. DAR trades below industry and market multiples, but near its own five-year median valuation. Debt of $4.1 billion and weaker cash flow leave leverage reduction dependent on stronger execution. Darling Ingredients Inc. (DAR - Free Report) has a better operating story after a sharp first-quarter recovery, but the case is mixed.
The shares combine stronger earnings, a discounted forward multiple and improving renewable-fuel conditions with elevated leverage and raw-material limits.
DAR’s Earnings Rebound Strengthens the Bull CaseDarling’s first-quarter results gave investors a clearer view of earnings power. Total net sales rose 12.3% year over year to $1.6 billion, and earnings were 83 cents per share, reversing a year-earlier loss.
Combined adjusted EBITDA more than doubled to $406.8 million from $195.8 million. Core ingredients execution, better finished-product pricing and a larger Diamond Green Diesel contribution all supported the rebound.
The recovery still needs context. The quarter included Darling’s share of a favorable lower-of-cost-or-market inventory adjustment of about $48.4 million at DGD, and management said that benefit has now been exhausted.
Darling currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Darling’s Valuation Offers a Relative DiscountDAR trades at 11.56X forward 12-month earnings. That is below 14.58X for its sub-industry, 17X for its sector and 20.41X for the S&P 500.
The discount supports the value argument, but it is not extreme versus the stock’s own history. DAR’s five-year median multiple is 11.92X, making the current valuation close to its normal range.
Valero Energy Corporation (VLO - Free Report) is relevant because it is Darling’s Diamond Green Diesel partner. Its renewable diesel exposure provides context for DGD margin swings.
Image Source: Zacks Investment Research
DAR’s Cash Flow Has Yet to Match EarningsCash flow did not keep pace with earnings. Operating cash flow was $153 million in the first quarter, down from $249 million in the prior-year period.
The gap reflects timing issues. Darling contributed $190.1 million to DGD, mainly for short-term working-capital needs tied to margin calls, while production-tax-credit receipts are expected in later quarters.
Management expects much or all of the temporary DGD funding to be returned. Until then, the earnings rebound has not fully converted into balance-sheet flexibility.
Darling’s Leverage Keeps the Risk ElevatedLeverage remains the main restraint on the bull case. Darling ended the first quarter with total debt of $4.1 billion, net debt of about $4 billion and a preliminary leverage ratio of 3.17 times.
Management continues to target total debt of approximately $3 billion or less. That objective depends on stronger operating cash flow, DGD distributions, production-tax-credit collections and planned asset-sale proceeds.
The path is achievable only if the improved earnings environment turns into cash. Accounting earnings alone would do less to reduce financial risk.
DAR Faces Supply and Cost ConstraintsRaw-material availability remains a structural issue. The North American cattle herd is at a multi-decade low, limiting access to beef-derived fats that can carry attractive renewable-fuel value.
Poultry volumes help offset supply pressure, but poultry yields less fat than beef. That limits upside when the best economics are tied to fats.
International markets add another risk. Tariff-related disruptions in Brazil, higher ocean freight costs and slower improvement in Europe could pressure margins if pricing or renewable-fuel economics soften.
Rising expenses also matter. Selling, general and administrative costs increased across segments in the first quarter, while corporate costs rose largely because of incentive compensation.
Bunge Global SA (BG - Free Report) provides a useful comparison because it operates across agricultural commodities, oils, proteins, animal feed and biofuel-related supply chains. Its exposure shows how broader agricultural processors also face commodity and logistics swings.
Darling’s Neutral View Reflects Balanced RisksThe bottom line is that DAR looks improved, but not risk-free. The Neutral view and $66 price target fit a stock with better earnings momentum, a relative valuation discount and a renewable-fuel recovery, offset by debt and cash-flow questions.
No Zacks Rank or Style Scores are provided, so investors cannot make a report-grounded assessment of DAR’s Value, Growth, Momentum or VGM classifications. That limits the ability to apply factor-based signals to the stock.
Without those classifications, the decision rests more on execution. DAR needs to hold core margins, convert earnings into cash and reduce leverage for the rebound to become a stronger investment case.
Key Takeaways Darling Ingredients' core EBITDA rose as stronger execution offset flat processing volumes. DAR's Feed Ingredients EBITDA jumped 52.5% as gross margin expanded to 25.3% despite flat volume. Food sales rose 16%, while Diamond Green Diesel EBITDA recovered on stronger renewable diesel economics. Darling Ingredients Inc. (DAR - Free Report) is moving beyond its legacy identity as a traditional rendering company. Its platform now spans feed ingredients, collagen, gelatin, specialty nutrition, bioenergy and renewable fuels.
The investor question is whether better execution can make earnings more durable across commodity cycles. First-quarter 2026 results suggest the core business is becoming a stronger earnings engine, even as renewable fuels remain important to upside.
Darling’s Core Ingredients Engine Gains StrengthDarling’s core ingredients adjusted EBITDA rose to $255.6 million in the first quarter of 2026 from $189.7 million a year earlier. That improvement is notable because it did not depend on a major increase in processing volumes.
Management pointed to better throughput, lower costs, improved product quality and disciplined product placement. In other words, the earnings gain came from running the network more efficiently and directing products into higher-value markets.
Image Source: Zacks Investment Research
DAR’s Feed Margins Improve Without Volume GrowthFeed Ingredients was the clearest example of that execution story. Segment adjusted EBITDA increased 52.5% year over year to $168.7 million, while gross margin expanded to 25.3% from 20.3%.
Raw-material volume was flat at about 3.1 million metric tons, making the margin improvement more meaningful. The limitation is supply: tight North American cattle availability may restrict future volume-driven upside, even if poultry volumes remain supportive.
Darling’s Food Segment Adds StabilityFood Ingredients adds a steadier, higher-margin layer to Darling’s portfolio. The segment benefits from collagen, gelatin and specialty nutrition demand across food, health and nutraceutical applications.
First-quarter Food sales increased 16% year over year to $405.2 million, supported by healthy demand in Europe and Asia. The proposed PB Leiner-Tessenderlo joint venture could add capacity, improve sourcing flexibility and strengthen Darling’s global collagen position.
Image Source: Zacks Investment Research
DAR’s Fuel Exposure Regains MomentumDiamond Green Diesel also recovered sharply. Darling’s share of DGD adjusted EBITDA rose to $151.2 million in the first quarter of 2026, helped by stronger renewable diesel economics.
Finalized renewable-volume requirements could support high industry utilization and lift demand for low-carbon feedstocks. Valero Energy Corporation (VLO - Free Report) , Darling’s partner in Diamond Green Diesel, gives investors another way to track renewable diesel economics and refining-market exposure.
Darling’s Integrated Model Supports FlexibilityDarling’s advantage comes from its ability to collect, process and redirect fats, proteins and used cooking oil across markets. That flexibility lets it serve feed, food, fuel, pet food and international customers depending on relative value.
Bunge Global SA (BG - Free Report) provides useful sector context because it also operates in agricultural processing, oils, fats and protein ingredients. While Bunge’s model differs from Darling’s rendering-based platform, both companies are exposed to agricultural supply chains, commodity cycles and demand for low-carbon feedstocks.
Darling currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DAR’s Neutral Signal Needs More ContextThe Neutral recommendation and $66 price target sit alongside a stronger operating thesis. The price target reflects 12.14X forward 12-month earnings, while the Neutral view implies expectations for market-like performance.
That signal should not be stretched beyond what it says. No Zacks Rank or Style Scores are disclosed here, so investors should avoid assigning unsupported ranking or factor conclusions. For now, the more useful focus is execution, cash flow conversion, debt reduction and whether core margin gains can hold through the next commodity cycle.
Entropy Technologies LP grew its holdings in shares of Darling Ingredients Inc. (NYSE:DAR – Free Report) by 99.5% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 44,733 shares of the company’s stock after acquiring an additional 22,309 shares during the quarter. Entropy Technologies LP’s holdings in Darling Ingredients were worth $2,767,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds have also recently made changes to their positions in DAR. SJS Investment Consulting Inc. boosted its stake in shares of Darling Ingredients by 69.9% in the 1st quarter. SJS Investment Consulting Inc. now owns 423 shares of the company’s stock valued at $26,000 after purchasing an additional 174 shares in the last quarter. Turtle Creek Wealth Advisors LLC increased its position in Darling Ingredients by 2.6% during the 1st quarter. Turtle Creek Wealth Advisors LLC now owns 7,625 shares of the company’s stock worth $472,000 after purchasing an additional 196 shares in the last quarter. Fifth Third Wealth Advisors LLC increased its position in Darling Ingredients by 2.9% during the 1st quarter. Fifth Third Wealth Advisors LLC now owns 7,776 shares of the company’s stock worth $481,000 after purchasing an additional 220 shares in the last quarter. Coldstream Capital Management Inc. lifted its stake in Darling Ingredients by 3.6% in the 4th quarter. Coldstream Capital Management Inc. now owns 7,701 shares of the company’s stock valued at $277,000 after purchasing an additional 267 shares during the last quarter. Finally, Public Employees Retirement System of Ohio lifted its stake in Darling Ingredients by 0.6% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 48,856 shares of the company’s stock valued at $1,508,000 after purchasing an additional 304 shares during the last quarter. Institutional investors own 94.44% of the company’s stock.
Analyst Ratings Changes DAR has been the topic of a number of research reports. UBS Group boosted their target price on shares of Darling Ingredients from $58.00 to $78.00 and gave the stock a “buy” rating in a research note on Thursday, April 2nd. Zacks Research cut Darling Ingredients from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 21st. TD Cowen cut their price objective on Darling Ingredients from $76.00 to $70.00 and set a “buy” rating on the stock in a report on Tuesday, June 23rd. Robert W. Baird boosted their price objective on Darling Ingredients from $64.00 to $75.00 and gave the stock an “outperform” rating in a research report on Tuesday, April 7th. Finally, JPMorgan Chase & Co. boosted their price objective on Darling Ingredients from $78.00 to $79.00 and gave the stock an “overweight” rating in a research report on Tuesday, May 12th. Ten research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, Darling Ingredients currently has an average rating of “Moderate Buy” and a consensus target price of $67.82.
View Our Latest Stock Analysis on Darling Ingredients
Insider Buying and Selling at Darling Ingredients In related news, CAO Joseph Manzi sold 3,000 shares of the business’s stock in a transaction on Friday, May 1st. The shares were sold at an average price of $63.89, for a total value of $191,670.00. Following the sale, the chief accounting officer owned 19,969 shares of the company’s stock, valued at $1,275,819.41. The trade was a 13.06% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 1.90% of the stock is currently owned by corporate insiders.
Darling Ingredients Stock Down 0.1% NYSE:DAR opened at $62.42 on Monday. Darling Ingredients Inc. has a one year low of $29.15 and a one year high of $66.02. The company has a debt-to-equity ratio of 0.82, a current ratio of 1.58 and a quick ratio of 1.03. The company has a market cap of $9.92 billion, a PE ratio of 45.23 and a beta of 1.04. The firm’s 50 day simple moving average is $58.47 and its 200 day simple moving average is $55.36.
Darling Ingredients (NYSE:DAR – Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $0.83 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.27. The firm had revenue of $1.55 billion during the quarter, compared to analysts’ expectations of $1.56 billion. Darling Ingredients had a net margin of 3.54% and a return on equity of 5.65%. The company’s revenue was up 12.3% on a year-over-year basis. During the same period in the prior year, the company posted ($0.16) EPS. On average, research analysts anticipate that Darling Ingredients Inc. will post 5.04 earnings per share for the current year.
Darling Ingredients Profile (Free Report)
Darling Ingredients Inc (NYSE: DAR) is a global leader in converting edible and inedible bio-nutrient streams into sustainable food, feed ingredients, renewable fuels and specialty products. Founded in 1882 and headquartered in Irving, Texas, the company builds on more than a century of experience in animal rendering and by-product recycling. Over time, Darling has expanded its capabilities beyond traditional rendering to include advanced processing technologies that support a circular economy and reduce waste from food and agricultural industries.
The company’s core operations revolve around four primary segments: Feed Ingredients & Services, Food & Nutrition, Fuel Ingredients & Services, and Specialty Ingredients.
Featured Articles Five stocks we like better than Darling Ingredients RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Want to see what other hedge funds are holding DAR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Darling Ingredients Inc. (NYSE:DAR – Free Report).
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Wall Street expects a year-over-year increase in earnings on higher revenues when Darling Ingredients (DAR - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis producer of natural ingredients from edible and inedible bionutrients is expected to post quarterly earnings of $1.45 per share in its upcoming report, which represents a year-over-year change of +1511.1%.
Revenues are expected to be $1.8 billion, up 21.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 14.25% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Darling?For Darling, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Darling will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Darling would post earnings of $0.56 per share when it actually produced earnings of $0.83, delivering a surprise of +48.21%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Darling doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Food - Miscellaneous industry, Mondelez (MDLZ - Free Report) , is soon expected to post earnings of $0.67 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -8.2%. Revenues for the quarter are expected to be $9.21 billion, up 2.5% from the year-ago quarter.
The consensus EPS estimate for Mondelez has been revised 6.8% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.97%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP indicates that Mondelez will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Darling Ingredients (DAR - Free Report) . This company, which is in the Zacks Food - Miscellaneous industry, shows potential for another earnings beat.
This producer of natural ingredients from edible and inedible bionutrients has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 48.53%.
For the most recent quarter, Darling was expected to post earnings of $0.56 per share, but it reported $0.83 per share instead, representing a surprise of 48.21%. For the previous quarter, the consensus estimate was $0.43 per share, while it actually produced $0.64 per share, a surprise of 48.84%.
Price and EPS Surprise
For Darling, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Darling has an Earnings ESP of +17.65% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 30, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
IRVING, Texas--(BUSINESS WIRE)--Darling Ingredients Inc. (NYSE: DAR) announced today that it will host a conference call on Thursday, July 30, 2026, at 9 a.m. Eastern Time (8 a.m. Central Time) to discuss second quarter 2026 financial results, which will be released earlier that day, and provide an update on company operations. A presentation with accompanying supplemental financial data will also be available at darlingii.com/investors.
To access the call as a listener, please register for the audio-only webcast.
To join the call as a participant to ask a question, please register in advance to receive a confirmation email with the dial-in number and PIN for immediate access on July 30 or call 833-461-5787 (United States) or 626-884-3620 (international) using access code 745365725.
A replay of the call will be available online via the webcast registration link two hours after the call ends. A transcript will be posted at darlingii.com/investors within 24 hours.
About Darling Ingredients
A pioneer in circularity, Darling Ingredients Inc. (NYSE: DAR) takes material from the animal agriculture and food industries, and transforms them into valuable ingredients that nourish people, feed animals and crops, and fuel the world with renewable energy. The company operates over 260 facilities in more than 15 countries and processes about 15% of the world’s animal agricultural by-products, produces about 30% of the world’s collagen (both gelatin and hydrolyzed collagen), and is one of the largest producers of renewable energy. To learn more, visit darlingii.com. Follow us on LinkedIn.
Investors in Darling Ingredients Inc. (DAR - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the July 17, 2026 $35 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for Darling Ingredients shares, but what is the fundamental picture for the company? Currently, Darling Ingredients is a Zacks Rank #1 (Strong Buy) in the Food – Miscellaneous industry that ranks in the Bottom 20% of our Zacks Industry Rank. Over the last 60 days, no analyst increased the earnings estimates for the to-be-reported quarter, while one has dropped the estimates. The net effect has taken our Zacks Consensus Estimate for the to-be-reported quarter from $1.24 per share to $1.26 in that period.
Given the way analysts feel about Darling Ingredients right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Key Takeaways DAR, GPRE, TX and NEXA qualified a screen for high earnings yield and buy-rated value stocks.Earnings yield above 10% was paired with EPS growth, liquidity and price filters to find value picks.The four picks show projected 2026 EPS growth, with estimates rising over recent weeks. Markets are navigating an increasingly uncertain environment. Memory giant Micron rallied big yesterday after reporting strong earnings, showing that investors continue to reward companies delivering solid results. At the same time, a broader sell-off in technology stocks suggests growing concerns that the massive artificial intelligence (AI) spending boom has pushed valuations too high and may take longer to generate meaningful returns. Add to that an inflation reading last month that hit a three-year high, with even the core PCE index climbing at its fastest pace in nearly three years.
This combination of AI spending fears, persistent inflation and macro uncertainty makes chasing momentum risky. Instead, investors may be better served by focusing on businesses with proven earnings, healthy balance sheets, and attractive valuations. Value investing is a prudent strategy now, offering a greater margin of safety while positioning investors to benefit from companies whose fundamentals remain strong despite short-term market volatility.
Value investors can consider stocks such as Darling Ingredients Inc. (DAR - Free Report) , Green Plains Inc. (GPRE - Free Report) , Ternium S.A. (TX - Free Report) and Nexa Resources (NEXA - Free Report) , which have high earnings yield.
Understanding Earnings Yield MetricOne metric widely used by value investors to identify potentially undervalued stocks is earnings yield. Calculated by dividing a company’s annual earnings per share by its current stock price, earnings yield indicates the amount of earnings generated for every dollar invested in a stock. Generally, a higher earnings yield suggests a stock may be undervalued relative to its earnings potential, while a lower earnings yield can indicate a richer valuation.
Earnings yield also provides a useful way to compare stocks with fixed-income investments such as bonds. When a stock’s earnings yield exceeds prevailing bond yields, it may offer a more attractive return potential, making it a valuable tool for investors searching for opportunities in an uncertain market.
Setting the Right FiltersWe have set an Earnings Yield greater than 10% as our primary screening criterion but it alone cannot be used for picking stocks that have the potential to generate solid returns. So, we have added the following parameters to the screen:
Estimated EPS growth for the next 12 months greater than or equal to the S&P 500: This metric compares the 12-month forward EPS estimate with the 12-month actual EPS.
Average Daily Volume (20 Day) greater than or equal to 100,000: High trading volume implies that a stock has adequate liquidity.
Current Price greater than or equal to $5.
Buy-Rated Stocks: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have been known to outperform peers in any type of market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Our PicksHere we have discussed four of the 33 stocks that qualified the screening:
Darling Ingredients is a provider of rendering, cooking oil and bakery waste recycling and recovery solutions. The company benefits from differentiated brand positioning tied to sustainability, ingredient recovery and renewable energy production. Through its integrated portfolio spanning feed ingredients, specialty food ingredients, biogas and renewable diesel, Darling Ingredients serves a broad customer base across agriculture, food manufacturing, health and energy industries.
The Zacks Consensus Estimate for DAR’s 2026 and 2027 EPS implies year-over-year growth of 588% and 8%, respectively. EPS estimates for the current and next year have moved up by 95 cents and 82 cents, respectively, over the past 60 days. Darling Ingredients currently sports a Zacks Rank #1 and has a Value Score of B.
Green Plains is a vertically integrated producer, marketer and distributor of ethanol. It is repositioning itself beyond commodity ethanol, investing in its Sequence Protein platform and renewable corn oil to extract greater value from every bushel processed. The high-protein feed ingredients have gained meaningful traction, with international shipments scaling rapidly. Rather than treating ingredients as a sideline, Green Plains has framed this shift as a fundamental transformation toward becoming a diversified ag-tech and biorefining company.
The Zacks Consensus Estimate for GPRE’s 2026 EPS implies year-over-year growth of 217%. EPS estimates for the current year have moved up by $1.54 over the past 60 days. Green Plains currently sports a Zacks Rank #1 and has a Value Score of A.
Ternium, a leading Latin American flat and long steel producer, is well-positioned to benefit from recovering demand and firmer steel prices across key markets. Mexico's commercial sector is rebounding post-destocking, infrastructure spending is supporting shipments, and Brazil's automotive demand remains solid, aided by favorable trade measures. Cost-competitive facilities and proactive steps to bolster liquidity further strengthen Ternium’s outlook.
The Zacks Consensus Estimate for TX’s 2026 and 2027 EPS implies year-over-year growth of 138% and 19%, respectively. EPS estimates for the current year and the next have moved up by 42 cents and 9 cents, respectively, over the past seven days. Ternium currently sports a Zacks Rank #1 and has a Value Score of A.
Nexa, one of the world's largest zinc producers, is well-positioned amid favorable zinc, silver, and copper prices. Strong operational momentum— including record output at Aripuanã— underscores improving mine performance. Growth projects like Cerro Pasco Integration extend mine life and boost profitability, while reduced streaming obligations at Cerro Lindo increase silver price exposure, supporting stronger cash generation and long-term shareholder value.
The Zacks Consensus Estimate for NEXA’s 2026 sales and EPS implies year-over-year growth of 14% and 230%, respectively. EPS estimates for the current and next year have moved up by 14 cents and 24 cents, respectively, over the past seven days. Nexa currently sports a Zacks Rank #1 and has a Value Score of A.
Darling Ingredients (DAR - Free Report) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to a loss of $0.16 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +49.09%. A quarter ago, it was expected that this producer of natural ingredients from edible and inedible bionutrients would post earnings of $0.43 per share when it actually produced earnings of $0.64, delivering a surprise of +48.84%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Darling, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $1.55 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 0.35%. This compares to year-ago revenues of $1.38 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Darling shares have added about 74.4% since the beginning of the year versus the S&P 500's gain of 4.2%.
What's Next for Darling?While Darling has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Darling was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.98 on $1.66 billion in revenues for the coming quarter and $4.02 on $6.63 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 15% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Celsius Holdings Inc. (CELH - Free Report) , has yet to report results for the quarter ended March 2026.
This company is expected to post quarterly earnings of $0.29 per share in its upcoming report, which represents a year-over-year change of +61.1%. The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level.
Celsius Holdings Inc.'s revenues are expected to be $755.22 million, up 129.4% from the year-ago quarter.
For the quarter ended March 2026, Darling Ingredients (DAR - Free Report) reported revenue of $1.55 billion, up 12.3% over the same period last year. EPS came in at $0.83, compared to -$0.16 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.56 billion, representing a surprise of -0.35%. The company delivered an EPS surprise of +49.09%, with the consensus EPS estimate being $0.56.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Darling performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Feed Ingredients: $985.34 million compared to the $1.03 billion average estimate based on two analysts. The reported number represents a change of +9.9% year over year.Net Sales- Fuel Ingredients: $160.25 million versus $147.42 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +18.6% change.Net Sales- Food Ingredients: $405.23 million compared to the $398.58 million average estimate based on two analysts. The reported number represents a change of +16% year over year.Segment Adjusted EBITDA- Food Ingredients: $80.78 million compared to the $75.59 million average estimate based on two analysts.Segment Adjusted EBITDA- Corporate: $-22.6 million versus $-20.63 million estimated by two analysts on average.Segment Adjusted EBITDA- Fuel Ingredients: $28.74 million compared to the $19.93 million average estimate based on two analysts.Segment Adjusted EBITDA- Feed Ingredients: $168.73 million versus $171.97 million estimated by two analysts on average.View all Key Company Metrics for Darling here>>>
Shares of Darling have returned +1% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
IRVING, Texas--(BUSINESS WIRE)---- $DAR--Darling Ingredients Inc. (NYSE: DAR) will host its 2026 Investor Day on Monday, May 11, 2026, at 10 a.m. Eastern Time in New York City and via a concurrent webcast. Executive leadership will provide details about the company's strategic priorities and three-year outlook. Darling Ingredients' executives will highlight several key themes, including: Strong foundation: The company's strategic, multi-year investments that have strengthened core assets, enhanced capab.
Key Takeaways DAR's Feed segment EBITDA climbed to $169M from $111M on strong poultry demand.DAR gains from improved pricing, regulatory tailwinds and shift to higher-priced markets.Margins rose to 25.3% as efficiency and pricing offset flat volumes near 3.1M tons. Darling Ingredients Inc.’s (DAR - Free Report) Feed Ingredients segment emerged as a key performance driver in the first quarter of 2026, reflecting improved performance in the core ingredients business. Despite a stagnant North American cattle herd, the segment achieved substantial EBITDA growth, rising to $169 million from $111 million in the prior-year quarter. This improvement was driven mainly by strong global poultry volumes and better operational efficiency.
The segment’s resilience is further bolstered by shifting regulatory and market dynamics. The finalization of the Renewable Volume Obligation in late March 2026 has already begun to drive favorable movement in fat prices as renewable diesel demand grows. Management anticipates this regulatory framework will act as a sustained "tailwind" for the Feed segment throughout the remainder of 2026.
Furthermore, Darling Ingredients shifted sales toward higher-priced markets, helping offset weaker pricing earlier in the quarter and minimizing the usual delay in realizing price gains. This strategic execution, combined with a focus on product quality and cost reduction, resulted in significant margin expansion, with gross margins improving to 25.3% in the first quarter, compared with 20.3% in the same period last year.
Although volumes remained largely flat at around 3.1 million metric tons, stronger pricing and operational efficiencies highlight global feed demand as a key factor supporting the segment’s current momentum.
What Do the Latest Metrics Say About Darling Ingredients?Darling Ingredients, which competes with Tyson Foods Inc. (TSN - Free Report) and Ingredion Inc. (INGR - Free Report) , has seen its shares rally 98.3% in the past year against the industry’s 24.5% decline. Shares of Tyson Foods have risen 22.6%, while Ingredion has declined 20% during the same period.
Image Source: Zacks Investment Research
From a valuation standpoint, Darling Ingredients’ forward 12-month price-to-earnings ratio stands at 14.5, higher than the industry’s 13.82. The company is trading at a discount to Tyson Foods (with a forward 12-month P/E ratio of 15.89) while trading at a premium to Ingredion (9.18).
Church & Dwight (NYSE:CHD) Director Robert Shearer Sells 8,600 SharesChurch & Dwight Co., Inc. (NYSE:CHD - Get Free Report) Director Robert Shearer sold 8,600 shares of the business's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $97.97, for a total transaction of $842,542.00. Following the completion of the sale, the director directly owned 30,678 shares in the company, valued at $3,005,523.66. This trade represents a 21.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.
Key Takeaways DAR says final RVO rules created a "clear path forward" for Diamond Green Diesel growth.DGD sold 272.4M gallons in Q1 2026 with an average EBITDA of $1.11 per gallon.Darling Ingredients expects stronger fat pricing to support both Fuel and Feed segments in 2026. Darling Ingredients Inc. (DAR - Free Report) believes it has reached a clear “inflection point,” driven largely by the finalization of the Renewable Volume Obligation (“RVO”) in late March 2026. This regulatory clarity has fundamentally shifted the operating environment for Diamond Green Diesel (“DGD”), Darling Ingredients’ joint venture, providing a "clear path forward" that is expected to strengthen results throughout the year.
The durability of these tailwinds is evidenced by the immediate market reaction. The constructive RVO has already led to favorable upward movement in fat prices, as improving regulatory clarity and stronger renewable diesel demand continue to tighten feedstock markets. In the first quarter of 2026, DGD reported robust performance with 272.4 million gallons sold at an average EBITDA of $1.11 per gallon. Results were further supported by a favorable lower-of-cost-or-market inventory valuation adjustment of approximately $48.4 million attributable to Darling Ingredients.
Importantly, the renewable diesel recovery is creating benefits beyond the Fuel segment alone. As renewable diesel demand increases competition for feedstocks, Darling Ingredients’ Feed segment is also expected to benefit from stronger fat pricing trends, which management believes should remain a “nice tailwind” throughout 2026.
Overall, the improving regulatory backdrop and strengthening renewable diesel demand are contributing to a more favorable operating environment for Darling Ingredients, supporting momentum across key areas of the business.
What Do the Latest Metrics Say About Darling Ingredients?Darling Ingredients, which competes with Tyson Foods Inc. (TSN - Free Report) and Ingredion Inc. (INGR - Free Report) , has seen its shares rally 77.8% in the past year against the industry’s 24.4% decline. Shares of Tyson Foods have risen 22.2%, while Ingredion has declined 21.7% during the same period.
Image Source: Zacks Investment Research
From a valuation standpoint, Darling Ingredients’ forward 12-month price-to-earnings ratio stands at 13.49, slightly lower than the industry’s 13.65. The company is trading at a discount to Tyson Foods (with a forward 12-month P/E ratio of 15.37) while trading at a premium to Ingredion (9.32).
Church & Dwight (NYSE:CHD) Director Robert Shearer Sells 8,600 SharesChurch & Dwight Co., Inc. (NYSE:CHD - Get Free Report) Director Robert Shearer sold 8,600 shares of the business's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $97.97, for a total transaction of $842,542.00. Following the completion of the sale, the director directly owned 30,678 shares in the company, valued at $3,005,523.66. This trade represents a 21.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.
Key Takeaways Darling Ingredients' shares jumped 84.3% in six months on stronger earnings and diesel margins.DAR reported Q1 adjusted EBITDA of $406.8M, more than double the prior-year level.Darling Ingredients sees stronger renewable diesel demand amid favorable fuel policies. Darling Ingredients Inc. (DAR - Free Report) has become one of the strongest-performing stocks in the consumer staples space in recent months, driven by a sharp recovery in renewable diesel margins, improving operational execution and strengthening earnings momentum. Shares of DAR have surged 84.3% over the past six months, significantly outperforming the broader market and most industry peers. Over the same period, the S&P 500 advanced 11.7% and the Zacks Consumer Staples sector gained 4.3%, while the Food - Miscellaneous industry declined 16.7%.
DAR has also substantially outperformed several key peers, such as Archer-Daniels-Midland Company (ADM - Free Report) , Tyson Foods, Inc. (TSN - Free Report) and Ingredion Incorporated (INGR - Free Report) . ADM and TSN gained 35.7% and 23.5%, respectively, while INGR declined 1.4% over the same period.
DAR Stock Past 6 Months Performance
Image Source: Zacks Investment Research
As of the latest trading session, Darling Ingredients closed at $63.82, just 3.3% below its 52-week high of $66.02 reached on May 5, 2026. The stock is trading above the 50 and 200-day moving averages. Trading above these averages signals bullish sentiments.
Image Source: Zacks Investment Research
This strong outperformance has put Darling Ingredients firmly in the spotlight, reinforcing investor confidence in its improving business momentum and recovery outlook. The recent rally suggests that strengthening fundamentals, improving renewable diesel economics and better operational execution may be supporting a more sustainable turnaround story for the stock. Let’s take a closer look at the key drivers behind DAR’s rally and what they could mean for investors going forward.
What’s Fueling Darling Ingredients’ Rally?Darling Ingredients’ rally is being fueled by a sharp rebound in profitability and operational momentum across both its core ingredients business and the Diamond Green Diesel (“DGD”) joint venture. In the first quarter of 2026, the company reported earnings per share of 83 cents compared with a loss a year earlier, while combined adjusted EBITDA more than doubled to $406.8 million. Revenues also climbed 12.3% to $1,550.8 million, reflecting stronger execution, better margins and improved market conditions. Management described the quarter as an “inflection point” for earnings power, reinforcing investor confidence in the company’s recovery trajectory.
Another major catalyst is the turnaround in renewable diesel economics. DGD generated $151.2 million in EBITDA during the first quarter, supported by stronger renewable fuel margins, higher diesel prices and a favorable Renewable Volume Obligation environment. Management noted that finalized renewable fuel rules have made future demand for renewable diesel clearer and stronger. At the same time, higher global energy prices are making renewable fuels more cost-competitive compared with traditional fuels. Investors are increasingly optimistic that improved biofuel policies and stronger feedstock pricing can sustain elevated earnings through the rest of 2026.
The company’s core ingredients segments are also showing strong operational improvements. Feed Ingredients benefited from disciplined risk management, higher poultry volumes, better throughput and stronger gross margins, while the Food Ingredients business experienced rising demand for collagen and gelatin products, especially in Europe and Asia. Darling Ingredients highlighted growth opportunities tied to health and nutrition trends, including its Nextida glucose-control product and broader demand for collagen-based functional foods. These developments have strengthened the narrative that DAR is not only an energy-transition play, but also a diversified specialty ingredients company with multiple growth engines.
Finally, investors are responding positively to Darling Ingredients' improving balance sheet outlook and cash generation potential. The company monetized $45 million in production tax credits during the first quarter of 2026 and reiterated its focus on deleveraging, with management targeting debt reduction toward the $3 billion level. Stronger EBITDA, rising renewable diesel margins and expectations for additional free cash flow have improved sentiment around financial flexibility and future shareholder value creation. Guidance for second-quarter core ingredients EBITDA of $260 million to $275 million further reinforced expectations that the company’s earnings momentum could continue through the year.
How Are the Consensus Estimates Faring for DAR?Reflecting the positive sentiment around Darling Ingredients, the Zacks Consensus Estimate for earnings per share has seen upward revisions. Over the past seven days, the EPS estimate for fiscal 2026 and 2027 has inched up 10 cents to $4.54 and 8 cents to $4.93, respectively. These estimates indicate expected year-over-year growth rates of 567.7% and 8.5%, respectively.
Image Source: Zacks Investment Research
Darling Ingredients Stock’s ValuationDarling Ingredients is currently trading at an attractive valuation compared with the broader industry. The stock's forward 12-month P/E ratio stands at 13.64, slightly down from the industry average of 13.66, highlighting its appeal as a value opportunity. Compared with peers, the company is trading at a discount to Archer-Daniels-Midland (with a forward 12-month P/E ratio of 16.99) and Tyson Foods (15.07). It is trading at a premium compared with Ingredion’s forward 12-month P/E ratio of 9.22.
DAR P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Here’s Why Darling Ingredients Can Be an Attractive PlayDarling Ingredients’ recent rally is supported by improving renewable diesel economics, stronger operational execution and a sharp rebound in earnings. The company’s recovery in Diamond Green Diesel margins, improving demand trends across its ingredients business and focus on debt reduction are strengthening the long-term growth outlook.
While the stock has rallied sharply in recent months, Darling Ingredients still trades at a reasonable valuation compared with several industry peers. With improving earnings momentum, stronger cash flow potential and favorable industry trends, this Zacks Rank #2 (Buy) stock appears well-positioned for investors seeking long-term growth opportunities.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Darling Ingredients (DAR - Free Report) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.
The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this producer of natural ingredients from edible and inedible bionutrients, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Darling Ingredients, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe earnings estimate of $1.13 per share for the current quarter represents a change of +1,155.6% from the number reported a year ago.
Over the last 30 days, three estimates have moved higher for Darling compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 41.67%.
Current-Year Estimate RevisionsThe company is expected to earn $4.54 per share for the full year, which represents a change of +567.7% from the prior-year number.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Darling. Over the past month, five estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 36.13%.
Favorable Zacks RankThanks to promising estimate revisions, Darling currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineDarling shares have added 6.5% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
