DAR Stock Surges 9.6% With A 9-day Winning Spree On Earnings Beat, Upgrades
Darling Ingredients (DAR) – a producer of natural feed, food, and fuel bio-ingredients – hit a 9-day winning streak, with cumulative gains over this period amounting to 9.6%. The company’s market cap has surged by about $716 Mil over the last 9 days and currently stands at $8.2 Bil.
The stock has YTD (year-to-date) return of 43.8% compared to 0.2% 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] Strong Q4 Earnings and Revenue Beat
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- Q4 Adj. EBITDA $336M vs $267M Consensus
- Q4 Revenue $1.71B vs $1.54B Consensus
- Impact: Positive Investor Sentiment, Increased Buying Volume
[2] Multiple Analyst Upgrades And Price Target Hikes
- BofA Securities PT To $65, BMO Capital To $57
- Robert W. Baird Upgrade To ‘Outperform’
- Impact: Increased Institutional Confidence, Stock Price Target Raised By Major Firms
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.
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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 | 0.2% | -0.3% |
| 9D (Current Streak) | 9.6% | 0.9% |
| 1M (21D) | 28.0% | 1.0% |
| 3M (63D) | 50.3% | 2.8% |
| YTD 2026 | 43.8% | 0.2% |
| 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 42 S&P constituents with 3 days or more of consecutive gains and 47 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 13 | 35 |
| 4D | 23 | 5 |
| 5D | 5 | 5 |
| 6D | 0 | 2 |
| 7D or more | 1 | 0 |
| Total >=3 D | 42 | 47 |
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.