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.
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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.
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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
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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.
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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.
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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)
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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.
Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Is Darling Ingredients (DAR - Free Report) one of those stocks right now? 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 a member of the Consumer Staples sector. This group includes 171 individual stocks and currently holds a Zacks Sector Rank of #13. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Darling Ingredients is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for DAR's full-year earnings has moved 58% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that DAR has returned about 72.9% since the start of the calendar year. Meanwhile, the Consumer Staples sector has returned an average of 7.1% on a year-to-date basis. This means that Darling Ingredients is outperforming the sector as a whole this year.
Another Consumer Staples stock, which has outperformed the sector so far this year, is Fomento Economico (FMX - Free Report) . The stock has returned 21.7% year-to-date.
The consensus estimate for Fomento Economico's current year EPS has increased 5.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Darling Ingredients belongs to the Food - Miscellaneous industry, a group that includes 40 individual stocks and currently sits at #192 in the Zacks Industry Rank. This group has lost an average of 5.9% so far this year, so DAR is performing better in this area.
Fomento Economico, however, belongs to the Beverages - Soft drinks industry. Currently, this 18-stock industry is ranked #106. The industry has moved +10.7% so far this year.
Investors with an interest in Consumer Staples stocks should continue to track Darling Ingredients and Fomento Economico. These stocks will be looking to continue their solid performance.
Shares of Darling Ingredients (DAR - Free Report) have gained 6.5% over the past four weeks to close the last trading session at $62.26, 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 $77.92 indicates a potential upside of 25.2%.
The mean estimate comprises 12 short-term price targets with a standard deviation of $5.95. While the lowest estimate of $70.00 indicates a 12.4% increase from the current price level, the most optimistic analyst expects the stock to surge 44.6% to reach $90.00. 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 highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
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.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 37.6%, as five 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.
Key Takeaways Darling Ingredients' Food Ingredients sales rose 16% to $405.2M in Q1 fiscal 2026.DAR cited stronger collagen and gelatin demand across Europe and Asia for growth.DAR said collagen and gelatin margins remained favorable globally in its Rousselot business. Darling Ingredients Inc.’s (DAR - Free Report) food segment is increasingly benefiting from the global shift toward preventive health and functional nutrition, particularly through rising demand for collagen-based products. In the first quarter of fiscal 2026, the Food Ingredients segment generated $405.2 million in sales, up 16% from $349.2 million a year earlier, while segment adjusted EBITDA increased to $80.8 million from $70.9 million. Management attributed part of the improvement to stronger collagen and gelatin demand across Europe and Asia.
The company said collagen and gelatin sales improved year over year due to expanding applications in food, nutrition and health products. Darling Ingredients also noted that its Rousselot business continues to see favorable collagen and gelatin margins globally. The trend aligns with broader consumer demand for high-protein, wellness-focused products targeting healthy aging, mobility and active lifestyles.
A key growth initiative is Nextida, Darling Ingredients’ glucose-control ingredient aimed at metabolic health. Management said the product is currently awaiting U.S. patent approvals tied to production processes and its use as a dietary supplement ingredient designed to help lower blood glucose levels. The company positioned the product as a non-pharmaceutical alternative benefiting from rising interest in “food as medicine.”
The strategy could expand Darling Ingredients’ presence beyond commodity ingredients into higher-value specialty nutrition categories. As consumers increasingly seek functional foods with measurable health benefits, the company’s collagen portfolio and specialty ingredient pipeline are becoming more important growth drivers within its food 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 82.8% in the past year against the industry’s 27.6% decline. Shares of Tyson Foods have risen 17.4%, while Ingredion has declined 26.7% during the same period.
Image Source: Zacks Investment Research
From a valuation standpoint, Darling Ingredients’ forward 12-month price-to-earnings ratio stands at 13x, slightly lower than the industry’s 13.4x. The company is trading at a discount to Tyson Foods (with a forward 12-month P/E ratio of 14.75x) while trading at a premium to Ingredion (9.16x).
Key Takeaways DAR's DGD unit posted $151.2M adjusted EBITDA in Q1 2026 versus $6M a year earlier.Darling Ingredients is prioritizing deleveraging and disciplined capital allocation over expansion.DAR monetized $45M in Production Tax Credits and plans to sell most grease trap service assets. Darling Ingredients Inc. (DAR - Free Report) appears to be entering a new strategic phase centered on operational discipline and cash-flow optimization rather than aggressive expansion. On its first-quarter 2026 earnings call, management suggests the company is shifting from navigating commodity and policy volatility toward monetizing a more stable renewable fuels environment and improving balance-sheet flexibility.
A key element of this transition is the improving contribution from Diamond Green Diesel (“DGD”), which generated $151.2 million in adjusted EBITDA for Darling Ingredients in the first quarter, compared with just $6 million a year earlier. The company described the fuel segment as being “at an inflection point” following the finalization of Renewable Volume Obligations, which have strengthened renewable diesel economics and boosted feedstock pricing.
At the same time, Darling Ingredients is becoming more selective with capital deployment. Management emphasized disciplined capital allocation, deleveraging and portfolio optimization, including the pending sale of the majority of its grease trap environmental service assets. The company also monetized $45 million in Production Tax Credits during the quarter to improve liquidity and support debt reduction efforts.
This marks a notable shift from a period dominated by external headwinds and uneven biofuel margins. Instead of emphasizing capacity growth, Darling Ingredients is now focused on extracting stronger returns from its existing platform, improving operational efficiency and using a more supportive regulatory backdrop to strengthen free cash generation. That strategic repositioning could define the company’s next operating chapter.
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 85.8% in the past year against the industry’s 24.6% decline. Shares of Tyson Foods have risen 17.1%, while Ingredion has declined 25.1% during the same period.
Image Source: Zacks Investment Research
From a valuation standpoint, Darling Ingredients’ forward 12-month price-to-earnings ratio stands at 12.2x, lower than the industry’s 13.72x. The company is trading at a discount to Tyson Foods (with a forward 12-month P/E ratio of 14.56x) while trading at a premium to Ingredion (9.13x).
Darling Ingredients (DAR) is rated Buy, supported by a visible earnings recovery, improved margins, and a compelling forward valuation versus peers. Q1 2026 delivered sharply higher EBITDA ($406.8M), gross margin expansion to 26.1%, and a return to profitability, signaling the roughest period is likely over. Core Feed and Food Ingredients segments drove margin and EBITDA gains without major volume growth, while DGD's Q1 result was boosted by a non-recurring inventory benefit.
Key Takeaways Darling Ingredients processes 15% of global animal by-products across 260 facilities worldwide.Tyson Foods generated $13.7B in Q2 fiscal 2026 sales, led by Chicken and Prepared Foods.TSN gained market share in lunchmeat, bacon and snacking through strong execution and pricing. In the food industry, both Darling Ingredients Inc. (DAR - Free Report) and Tyson Foods, Inc. (TSN - Free Report) play important roles in supplying products that support the global food and agricultural supply chain. The industry includes companies involved in food processing, ingredient production, protein manufacturing and value-added solutions that serve consumers, retailers and industrial customers worldwide.
While Tyson Foods is widely recognized as one of the largest producers of chicken, beef and prepared foods, Darling Ingredients focuses on converting food waste and animal by-products into sustainable ingredients used in feed, fuel and specialty applications. Comparing DAR and TSN gives investors exposure to different areas of the food sector. Tyson Foods benefits from large-scale protein production and branded food operations, while Darling Ingredients focuses on sustainability-driven ingredient recovery, recycling and renewable energy solutions.
The Case for Darling IngredientsDarling Ingredients has built a strong global market position through its large-scale circular economy platform, operating more than 260 facilities across over 15 countries as of the first quarter of 2026. The company processes roughly 15% of the world’s animal agricultural by-products and produces nearly 30% of global collagen supply, giving it meaningful scale within the feed, food ingredients and renewable energy markets. Its diversified operating structure reduces reliance on any single end market while strengthening exposure to long-term sustainability and nutrition trends.
The company continues to strengthen its business through disciplined capital allocation, operational efficiency and commercial optimization strategies. During the first quarter of 2026, management highlighted improved throughput, stronger gross margins and better product placement into higher-priced markets across the Feed Ingredients segment. Meanwhile, the Food Ingredients business benefited from rising collagen and gelatin demand, particularly in Europe and Asia, as consumers increasingly focus on protein intake, health supplements and functional nutrition products.
Darling Ingredients also 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, the company serves a broad customer base across agriculture, food manufacturing, health and energy industries. Management continues to advance innovation initiatives such as the Nextida glucose-control product while leveraging global processing capabilities, risk management systems and digital operating efficiencies to support long-term growth opportunities.
However, Darling Ingredients continues to face exposure to volatile commodity markets, renewable fuel pricing fluctuations and regulatory uncertainty tied to biofuel policies. The company also remains affected by weak North American cattle supply, which limits higher-fat feedstock availability and impacts rendering economics. In addition, elevated debt levels, foreign exchange pressures and changing tariff environments could create near-term earnings volatility, particularly across global feedstock procurement and specialty protein operations.
The Case for Tyson FoodsTyson Foods maintains a dominant position within the global protein industry through its diversified portfolio spanning chicken, beef, pork and prepared foods. In second-quarter fiscal 2026, the company generated $13.7 billion in sales, led by strong contributions from the Chicken and Prepared Foods segments. TSN’s scale, integrated supply chain, extensive distribution capabilities and broad customer reach reinforce its standing across retail, foodservice and international protein markets.
The company continues to strengthen its business through operational excellence, disciplined pricing strategies and long-term strategic customer partnerships. Tyson Foods reported market share gains across lunchmeat, bacon, snacking and smoked sausage categories while delivering growth in volume, units and dollar sales within Prepared Foods. Management also highlighted sustained momentum in Chicken, supported by improved live production performance, stronger execution and multiyear investments in advanced genetics capabilities.
Tyson Foods benefits from strong brand positioning through products sold under Tyson, Jimmy Dean, Hillshire Farm, Ball Park and Aidells, helping it reach consumers seeking convenient, protein-focused and value-added meal solutions. Its diversified portfolio supports participation across premium and mainstream food categories, while investments in supply-chain optimization, production efficiency and data-driven operational management strengthen customer service capabilities and long-term competitiveness.
The company also benefits from a balanced operating structure that allows strength in one business segment to offset weakness in another, supporting more stable overall performance across market cycles. During the second quarter of fiscal 2026, momentum in Chicken and Prepared Foods contributed to top-line growth, margin improvement and stronger cash generation. Tyson Foods continues to prioritize portfolio optimization, balance-sheet discipline and operational efficiency initiatives to reinforce its leadership position within the global protein industry.
DAR vs. TSN: How Do Estimates Stack Up?The Zacks Consensus Estimate for Darling Ingredients’ current fiscal-year earnings per share (EPS) has moved up 25.5% over the past 30 days to $4.68. The consensus mark indicates a year-over-year increase of 588.2%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year EPS has moved up 4.8% over the past 30 days to $4.14. The consensus mark indicates a year-over-year increase of 0.5%.
Image Source: Zacks Investment Research
DAR & TSN: A Look at Past-Month Stock PerformanceOver the past month, shares of Darling Ingredients have declined 1.6%, underperforming Tyson Foods and the Consumer Staples sector, which posted growth of 2.4% and 4.9%, respectively, over the same period.
Image Source: Zacks Investment Research
DAR & TSN: A Peek Into Stock ValuationDarling Ingredients is trading at a forward 12-month price-to-earnings (P/E) ratio of 12.35, modestly below its one-year median of 14.41. Meanwhile, Tyson Foods trades at a forward P/E of 14.57, above its one-year median of 14.08.
Image Source: Zacks Investment Research
DAR vs. TSN: Which Is the Better Bet Now?Among the two, Tyson Foods stands out as the stronger near-term story, supported by improving operational momentum, market share gains in Prepared Foods and a balanced multi-protein portfolio. Its diversified business structure and disciplined execution continue to support stable earnings visibility across market cycles. In contrast, Darling Ingredients remains more exposed to renewable fuel volatility, feedstock supply challenges and commodity-driven earnings swings, despite its attractive long-term sustainability and specialty ingredients opportunities.
TSN currently has a Zacks Rank #2 (Buy), while DAR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
WOODS CROSS, Utah, June 02, 2026 (GLOBE NEWSWIRE) -- Energy Metal News News Commentary — The U.S. refining map is getting smaller. West Coast capacity has been shrinking as older plants close, the major refiners spent the first quarter of 2026 emphasizing discipline over expansion, and the Trump administration has used Defense Production Act determinations to flag domestic refining as a strategic priority. Into that tightening backdrop, Sky Quarry Inc. (NASDAQ: SKYQ) — owner of the only operating refinery in the State of Nevada — has just signed an agreement aimed at turning that refinery toward one of the fastest-repricing corners of the fuel market: sustainable aviation fuel.
It is an ambitious pivot for a micro-cap, and one that lands against a difficult operating quarter the company is still working through. But the strategic logic is clear: a small, fully permitted refinery in a supply-short Western market, paired with low-carbon-fuel partners and a waste-to-oil feedstock story, is exactly the kind of asset that becomes more valuable as conventional capacity disappears and policy tilts toward domestic, lower-carbon production.
See how the SAF pivot and the Foreland refinery fit together — view the full Sky Quarry briefing here.
The MOU and what it opens up
In a May 7, 2026 announcement, Sky Quarry executed a non-binding, multi-party Memorandum of Understanding with Southern Energy Renewables Inc. — a U.S. developer of carbon-negative fuels and large-scale biomass-to-SAF platforms — and DevvStream Corp., a carbon-management and environmental-markets company. The MOU carries an initial three-year term and establishes a collaboration focused on fuel innovation, refinery integration, and low-carbon fuel development, spanning recycled hydrocarbons, specialty fuels, and sustainable aviation fuel.
The practical aim is to create a pilot-scale validation pathway for SAF and specialty fuels at the company’s PR Spring development in Utah, alongside potential technology upgrades at the Foreland Refinery in Nevada that could allow it to produce on-spec aviation fuels. The arrangement is also designed to give Sky Quarry access to development expertise across front-end engineering, pilot validation, and commercialization, plus exposure to carbon programs, environmental-attribute markets, and project-financing frameworks it would struggle to assemble on its own.
For the company, the appeal is leverage on assets it already owns. CEO Marcus Laun framed the goal as evolving the Foreland Refinery “into a next-generation fuel production hub.” The MOU is non-binding outside of customary provisions, so it is a framework rather than a contract — but it points the refinery and the PR Spring resource at a market that is repricing quickly, and it does so without Sky Quarry having to fund the entire development pathway itself.
The assets behind the pivot
Sky Quarry is an integrated energy and resource-recovery company built around two core assets. The first is the Foreland Refinery in Railroad Valley, Nevada — operated through its wholly owned subsidiary Foreland Refining Corporation — which the company describes as the only operating refinery in the state, with permitted capacity of roughly 5,000 barrels per day producing diesel, vacuum gas oil, naphtha, and liquid paving asphalt for Western U.S. markets. In a region where refining capacity is scarce and shrinking, an in-state, permitted facility carries strategic value beyond its size.
The second asset is the PR Spring development in Utah, where the company holds bitumen leases over roughly 5,930 acres and is advancing its proprietary ECOSolv process — a closed-loop, solvent-based technology designed to recover oil from oil-saturated sands and other oil-bearing solids, including waste asphalt shingles, while recycling the bulk of its solvent and using no water. The company has separately put a 180-million-barrel resource estimate around the PR Spring asset and issued a request for proposals to accelerate its development. The SAF MOU layers a low-carbon-fuel pathway on top of that existing hydrocarbon-recovery work rather than replacing it.
Want the full picture on PR Spring, ECOSolv, and the Foreland refinery? Explore the Sky Quarry breakdown here.
The operating reality
Any honest read of the story has to account for the quarter behind it. The Eagle Springs / Foreland refinery experienced outages in late 2025 and the first quarter of 2026 for boiler repairs, which halted production and drove a sharp drop in revenue — first-quarter net sales fell to a negligible figure while the plant was down, against more than $6 million in the year-earlier quarter, and the company reported a net loss of roughly $2.3 million. Management has said the repairs are complete and production is expected to resume around June 2026, subject to feedstock procurement. The company is a micro-cap that executed a 1-for-8 reverse stock split in March 2026 to maintain its Nasdaq listing, and its development plans remain subject to financing.
None of that is hidden, and none of it is unusual for a company at this stage — but it is the context against which the SAF ambition has to be weighed. The refinery has to be running reliably before it can be upgraded into anything, and the PR Spring and SAF pathways depend on capital the company has not yet fully secured. The MOU is a credible strategic step; it is not, on its own, production. Investors should size the opportunity against the execution and funding risk that comes with it.
Four low-carbon-fuel names investors are watching alongside Sky Quarry
Sky Quarry is a tiny player in a field that includes far larger and better-capitalized low-carbon-fuel developers. The peer group below shows how the SAF and renewable-fuel theme is being built out — and how uneven the economics still are.
Darling Ingredients Inc. (NYSE: DAR) is the heavyweight of the group. Through its Diamond Green Diesel joint venture, Darling is one of the largest renewable-fuel producers in North America; it reported Q1 2026 results showing its share of Diamond Green Diesel EBITDA at $151.2 million on 272.4 million gallons of renewable fuels sold (about $1.11 per gallon), and used a May 11 Investor Day to lay out its evolution across rendering, collagen, and renewable energy. Darling shows what scale looks like in this market — the opposite end of the spectrum from Sky Quarry’s single small refinery.
Gevo, Inc. (NASDAQ: GEVO) is a closer thematic match on the SAF side. A renewable-fuels and carbon-management company, Gevo reported positive cash flow from operations of $20 million in the fourth quarter of 2025 and is targeting neutral-to-positive operating cash flow for 2026, while advancing its alcohol-to-jet “ATJ-30” SAF project at Gevo North Dakota — supported by a U.S. Department of Energy loan-guarantee conditional commitment as it works to secure project-level construction financing. Gevo underscores both the promise of SAF and the heavy reliance on policy support and project financing that defines the space.
Aemetis, Inc. (NASDAQ: AMTX) rounds out the developer side. The company reported first-quarter 2026 revenue of $54.6 million, up 27% year over year, across its California ethanol, dairy renewable-natural-gas, and India biodiesel segments, and recognized $4.0 million of Section 45Z production tax credits in the quarter. Its fully permitted renewable-diesel and SAF facility in California is awaiting final financing, pending further clarity from federal 45Z guidance — a reminder of how dependent these projects are on tax-credit rules.
OPAL Fuels Inc. (NASDAQ: OPAL) offers a renewable-natural-gas comparison. A leader in capturing and converting biogas into low-carbon-intensity RNG and renewable electricity, OPAL has entered a master agreement to monetize roughly $100 million of Section 45Z Clean Fuel Production Tax Credits over the coming years, with an initial closing anticipated in the second quarter. OPAL illustrates the same monetization-of-environmental-attributes mechanic that DevvStream is meant to bring to the Sky Quarry collaboration.
Across all four, the common thread is the one driving interest in Sky Quarry: U.S. policy and tight conventional supply are pulling capital toward domestic low-carbon-fuel production, and companies that can credibly position assets in that gap are being watched closely. The difference is scale — these peers are running or financing large platforms, while Sky Quarry is trying to leverage one small, strategically located refinery into the same trade.
What to watch from here
For Sky Quarry specifically, the near-term catalysts are sequencing in a clear order. First and most important is the refinery restart — resuming reliable production at Foreland after the boiler outages is the precondition for everything else. From there, investors will watch for any binding agreements or pilot activity flowing from the Southern Energy Renewables and DevvStream MOU, progress on the PR Spring RFP and the broader development financing, and any concrete steps toward the refinery upgrades that would let Foreland produce on-spec aviation fuels.
None of this changes the fundamental reality that Sky Quarry is a development-stage micro-cap working through an operating disruption, with ambitions that outrun its current balance sheet. But the combination of the only permitted refinery in Nevada, a large waste-to-oil resource, a proprietary recovery technology, and a fresh low-carbon-fuel collaboration gives the company a more strategically interesting position than its size suggests — in a market where domestic refining and sustainable aviation fuel are both being repriced at once. Execution, and funding, will determine whether the position converts into production.
Stay ahead of the next Sky Quarry milestone — get updates and the full story here.
About Sky Quarry
Sky Quarry Inc. (NASDAQ: SKYQ) is an integrated energy and resource-recovery company. Through its wholly owned subsidiary Foreland Refining Corporation, it operates the Foreland Refinery in Railroad Valley, Nevada — described as the only operating refinery in the state — and is advancing its PR Spring development in Utah using its proprietary ECOSolv process to recover hydrocarbons from oil-saturated sands and waste materials, including asphalt shingles.
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IRVING, Texas--(BUSINESS WIRE)---- $DAR--Darling Ingredients Inc. (NYSE: DAR) and its health brand Rousselot today announced that the U.S. Patent and Trademark Office (USPTO) has granted Patent No. US12636339 for Nextida GC, a first-of-its-kind collagen peptide ingredient developed to help support healthy after-meal blood sugar levels, naturally. The patent protects both the production process and the use of Nextida GC as a dietary supplement ingredient, offering a non-pharmaceutical option for managing.
