Analysts Expect 14% Growth for IWP Holdings in the Future
ETF Analysis: The iShares Russell Mid-Cap Growth ETF (IWP) has an implied analyst target price of $158.69, indicating a potential upside of 13.74% from its current trading price of $139.52.
Notable Holdings: Key underlying holdings with significant upside potential include Viking Therapeutics Inc (VKTX), Ultragenyx Pharmaceutical Inc (RARE), and Darling Ingredients Inc (DAR), with expected increases of 247.12%, 192.49%, and 69.33% respectively.
Market Sentiment: Analysts' high target prices may reflect optimism but could also lead to downgrades if they are based on outdated information or fail to account for recent developments in the companies or industry.
Investor Considerations: Further research is necessary for investors to determine whether analysts' targets are justified or overly optimistic regarding future stock performance.
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Analyst Views on DAR
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- Strong Financial Performance: Darling Ingredients reported total net sales of $1.7 billion for Q4 2025, up from $1.4 billion in Q4 2024, reflecting robust growth in core business areas and positive demand trends.
- EBITDA Growth: Adjusted EBITDA reached $336 million, significantly higher than $289 million in Q4 2024 and $245 million in the previous quarter, indicating successful operational efficiency and cost management.
- Strategic Acquisition Plans: The company is positioned as a stalking horse bidder for three rendering facilities from the Potense Group in Brazil, with an expected acquisition cost of around $120 million, which will enhance synergies in the Brazilian market and strengthen its competitive position.
- Optimistic Future Outlook: Management anticipates core ingredients adjusted EBITDA for Q1 2026 to be between $240 million and $250 million, and despite moderate operational challenges from severe January weather, the overall outlook remains positive, with an improving policy environment expected to enhance earnings potential.
- Overbought Warning: As of February 12, 2026, Hershey Co (NYSE:HSY) and Darling Ingredients Inc (NYSE:DAR) are flagged as overbought in the consumer staples sector, potentially posing risks to momentum-focused investors, indicating excessive market optimism towards these stocks.
- Market Trends: These overbought signals suggest that investors chasing short-term gains may overlook potential market correction risks, leading to increased price volatility in the future, which could impact overall investment strategies.
- Investor Caution: For momentum-driven investors, the current overbought status may necessitate a reassessment of holdings to avoid significant losses during market corrections, highlighting the importance of risk management.
- Sector Analysis: The overbought phenomenon in the consumer staples sector may signal a shift in overall market sentiment, prompting investors to monitor industry dynamics closely to adjust their portfolios timely and maintain competitiveness in a volatile market.
- Strong Earnings Report: Darling Ingredients reported a Q4 GAAP EPS of $0.35, meeting market expectations, while revenue reached $1.71 billion, reflecting a 22.1% year-over-year increase and exceeding forecasts by $180 million, indicating robust performance in the market.
- Stock Price Movement: Despite the impressive earnings, Darling Ingredients' shares fell 1.25% in after-hours trading, reflecting market concerns over cyclical pressures that may impact investor confidence.
- Circular Economy Leadership: As a leader in the circular economy, Darling Ingredients' business model is undervalued in the current economic climate, and despite facing cyclical pressures, its long-term growth potential remains strong and warrants attention.
- Tax Credit Initiative: The company plans to sell $50 million in additional tax credits, further enhancing its financial flexibility, which is expected to support future investments and expansion efforts.
- Net Income Decline: Darling Ingredients reported a net income of $56.9 million for Q4 2025, translating to $0.35 per diluted share, a significant drop from $101.9 million and $0.63 per share in Q4 2024, primarily due to $58 million in restructuring and asset impairment charges.
- Sales Growth: The company achieved total net sales of $1.7 billion in Q4 2025, an increase of $292 million compared to $1.4 billion in the same period of 2024, indicating resilience in maintaining sales growth despite market challenges.
- EBITDA Performance: Combined Adjusted EBITDA for Q4 2025 reached $336.1 million, up $46.5 million from $289.5 million in Q4 2024, reflecting significant operational efficiency improvements despite pressures from declining fat prices.
- Liquidity Enhancement: By monetizing $255 million of Production Tax Credit sales during FY 2025, Darling Ingredients improved its liquidity, providing financial support for continued deleveraging in 2026, showcasing proactive financial management strategies.
- Earnings Announcement Schedule: Darling Ingredients is set to release its Q4 2023 earnings report on February 11 after market close, with consensus EPS estimates at $0.35, reflecting a 44.4% year-over-year decline, while revenue is projected at $1.53 billion, indicating a 9.3% year-over-year growth potential.
- Historical Performance Review: Over the past year, Darling has only beaten EPS estimates 50% of the time and has not surpassed revenue estimates, highlighting volatility in its profitability that may affect investor confidence.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen three upward revisions and two downward adjustments, while revenue estimates have experienced five upward revisions and three downward changes, indicating mixed market sentiment regarding the company's future performance, which could lead to stock price fluctuations.
- Strategic Partnerships and Financing: Darling Ingredients is selling $50 million in additional tax credits and is combining its collagen and gelatin units with Tessenderlo Group, a strategic move that could provide new revenue streams and enhance market competitiveness.





