DAR Stock Surges 9.4% With A 8-day Winning Spree On Strong Earnings Beat

DAR: Darling Ingredients logo
DAR
Darling Ingredients

Darling Ingredients (DAR) – a producer of natural feed, food, and fuel bio-ingredients – hit a 8-day winning streak, with cumulative gains over this period amounting to 9.4%. The company’s market cap has surged by about $703 Mil over the last 8 days and currently stands at $8.2 Bil.

The stock has YTD (year-to-date) return of 43.5% compared to 0.5% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity or a trap.

What Triggered The Rally?

[1] Q4 Earnings and Sales Beat

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  • EPS of 64 cents surpassed estimates
  • Sales surged 20.6% to $1.71B, beating estimates
  • Impact: Sustained institutional buying, Positive sentiment shift

[2] Analyst Upgrade and Price Target Hikes

  • Robert W. Baird upgraded DAR to Outperform with a $62 target
  • Multiple analysts reiterated Buy ratings post-earnings
  • Impact: Increased investor confidence, Stock crossed key technical levels

Opportunity or Trap?

Below is our take on valuation.

There are several things to fear in DAR stock given its overall Weak operating performance and financial condition. Hence, together with its High valuation, this makes the stock look Risky (For details, see Buy or Sell DAR).

But here is the real interesting point.

You are reading about this 9.4% move after it happened. The market has already priced in the news. To catch the next winner before the headlines, you need predictive signals, not notifications. Our High Quality Portfolio has flagged 5 new opportunities that have not surged yet.

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Returns vs S&P 500

The following table summarizes the return for DAR stock vs. the S&P 500 index over different periods, including the current streak:

Return Period DAR S&P 500
1D 1.4% 0.6%
8D (Current Streak) 9.4% 1.2%
1M (21D) 30.6% -0.8%
3M (63D) 48.7% 2.2%
YTD 2026 43.5% 0.5%
2025 6.9% 16.4%
2024 -32.4% 23.3%
2023 -20.4% 24.2%

However, big gains can follow sharp reversals – but how has DAR behaved after prior drops? See DAR Dip Buyer Analysis to learn more.

Gains and Losses Streaks: S&P 500 Constituents

There are currently 99 S&P constituents with 3 days or more of consecutive gains and 17 constituents with 3 days or more of consecutive losses.
 

Consecutive Days # of Gainers # of Losers
3D 82 10
4D 11 5
5D 3 2
6D 1 0
7D or more 2 0
Total >=3 D 99 17

 
 
Key Financials for Darling Ingredients (DAR)

Last 2 Fiscal Years:

Metric FY2023 FY2024
Revenues $6.8 Bil $5.7 Bil
Operating Income $600.5 Mil $281.9 Mil
Net Income $647.7 Mil $278.9 Mil

Last 2 Fiscal Quarters:

Metric 2025 FQ2 2025 FQ3
Revenues $1.5 Bil $1.6 Bil
Operating Income $86.8 Mil $123.4 Mil
Net Income $12.7 Mil $19.4 Mil

While DAR stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.