Strength Seen in Darling (DAR): Can Its 9.2% Jump Turn into More Strength?

Darling Ingredients (DAR) shares rallied 9.2% in the last trading session to close at $36.01. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.6% loss over the past four weeks.

Darling Ingredients stock is rising amid optimism surrounding recent developments, which suggest proposed rise in biofuel blending mandates. This policy shift may support stronger margins and improved performance across DAR’s core renewable diesel and sustainable fuel operations.

This producer of natural ingredients from edible and inedible bionutrients is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of -18.4%. Revenues are expected to be $1.55 billion, up 6.4% from the year-ago quarter.

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

For Darling, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DAR going forward to see if this recent jump can turn into more strength down the road.

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

Darling is part of the Zacks Food - Miscellaneous industry. Lamb Weston (LW), another stock in the same industry, closed the last trading session 2.6% lower at $54.8. LW has returned 8.7% in the past month.

Lamb Weston's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.66. Compared to the company's year-ago EPS, this represents a change of -15.4%. Lamb Weston currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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