DAR Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Darling Ingredients Inc (DAR) is a good buy for a beginner investor with a long-term horizon and $50,000-$100,000 available for investment. The stock has strong positive catalysts, bullish technical indicators, favorable analyst ratings, and improving industry dynamics. Despite a slight decline in net income and EPS in the latest quarter, the long-term growth potential driven by biofuel demand and favorable regulatory changes outweighs the short-term negatives.
The technical indicators are bullish. The MACD histogram is positive and expanding, suggesting upward momentum. The RSI is neutral at 74.953, and the moving averages are aligned bullishly (SMA_5 > SMA_20 > SMA_200). The stock is trading above key support levels, with resistance levels at R1: 58.952 and R2: 60.243, indicating potential for further upside.
Analysts have consistently raised price targets, with the latest target at $69 by JPMorgan, citing strong biofuel demand and favorable regulatory changes.
The Environmental Protection Agency's proposed renewable volume obligations for 2026 are expected to drive higher biofuel mandates, benefiting the company.
Darling's Q4 results showed strong operational momentum and improving gross margins, with revenue up 20.60% YoY.
Net income and EPS declined significantly YoY in Q4 2025, which may concern some investors.
Options data shows a high put-call volume ratio (1.84), indicating short-term bearish sentiment among options traders.
In Q4 2025, revenue increased by 20.60% YoY to $1.71 billion, gross margin improved to 16.94% (up 16.83% YoY), but net income dropped by 44.13% YoY to $56.94 million, and EPS fell by 44.44% YoY to $0.35. The financials indicate strong revenue growth but declining profitability.
Analysts are overwhelmingly positive on DAR, with multiple firms raising price targets recently. The highest target is $69, and the consensus is that the company will benefit from improving industry conditions, regulatory tailwinds, and strong operational performance.
