3 Recently Upgraded Stocks to Buy for the Second-Half

NYSE: DRI | Darden Restaurants Inc. News, Ratings, and Charts

DRI – The bull market is raging as the market continues to make new highs. However, participation is thin which means that stock selection matters even more. 3 upgraded stocks that investors should consider buying are Darden Restaurants (DRI), Issuer Direct Corporation (ISDR), and Kontoor Brands (KTB).

With the stock market busting out to new highs this week, it’s a good time for investors to reassess their portfolios. Ideally, they want to ensure that they are in stocks that are improving on a technical and fundamental basis.

The POWR Ratings are one tool that can help you accomplish this task. They are updated daily to ensure investors have all the latest information necessary to confidently pull the trigger on trades.

Without further ado, let’s delve into the nuances of three of the latest POWR Ratings upgrades: Darden Restaurants (DRI), Issuer Direct Corporation (ISDR), and Kontoor Brands (KTB).

Darden Restaurants (DRI)

Most restaurants stay in business for half a decade or so and end up changing names, fizzling out, or making other drastic changes. Though investing in a single restaurant might not be wise, putting your money into chain restaurants has the potential to prove quite prudent.

DRI has served up hot eats and cool treats going back to the late 60s. DRI is the parent company of dining establishments such as LongHorn Steakhouse, Olive Garden, Eddie V’s, and The Capital Grille.

DRI has a forward P/E ratio of 19.31. This is a reasonable forward P/E ratio so investors shouldn’t be scared away due to valuation concerns. The stock is currently trading about $6 below its 52-week high of $149.73. The stock’s 52-week low is $69.77. DRI has a beta of 1.54 so it probably won’t fluctuate if the market gets rocky.

DRI is a POWR Ratings monster with an A Growth component and Bs in the Value, Sentiment, and Quality components. Investors considering a position in DRI who would like to learn more about how DRI fares in the Momentum and Stability components can find out by clicking here.

DRI is ranked second of 45 stocks in the Restaurants space. Click here to learn more about the stocks in the restaurant sector.

The analysts have high hopes for DRI. If the analysts are correct, DRI will hit the average target price of $156.08. If the stock hits this price level, it will have popped by nearly 20%. Across the past year, DRI’s average price target has increased by nearly $75.

Of the 28 analysts who have issued DRI recommendations, five view the stock as a Strong Buy, 14 view it as a Buy, and nine views it as a Hold.

Issuer Direct Corporation (ISDR)

ISDR is an issuer services business, helping companies make and distribute business/financial communication on the web and also through more traditional forms of media. ISDR’s regulatory and compliance expertise helps the company provide a wide array of services that make it easier for clients to properly communicate with shareholders and other important parties.

ISDR has a forward P/E ratio of 27.95 so there is an argument to be made that it is slightly overvalued. The stock has a low beta of 0.95, indicating it should hold steady even if some market drama goes down.

ISDR is a POWR Ratings success with an A overall grade. The stock has As in the Quality and Sentiment components of the POWR Ratings along with a B Value component. Click here to find out how ISDR fares in the Momentum, Stability, and Growth components of the POWR Ratings.

Of the 73 publicly traded companies in the Technology – The services sector, ISDR is ranked second. Click here to find out more about the stocks in this sector.

ISDR has solid price returns across the board but for ’18 when the return was in the negative. ISDR had a 2020 price return of nearly 50%.

Kontoor Brands (KTB)

KTB is a clothing business that designs, makes, and distributes Lee, Wrangler, and Rock & Republic lines. KTB has a forward P/E ratio of 14.46 so the stock is fairly priced. KTB also has a relatively reasonable beta of 1.30. This figure indicates the stock probably won’t fall off a cliff if the market undulates.

KTB has an A POWR Rating grade with Bs in the Momentum, Quality, Value, and Growth components. Click here to learn how KTB fares in the Sentiment and Stability components.

KTB is ranked in the top 10 of 65 publicly traded companies in the Fashion & Luxury space, slotting in at number nine. You can learn more about the stocks in the Fashion & Luxury space by clicking here.

The analysts are bullish on KTB, setting an average target price of $65.81 for the stock. If KTB hits this price target, it will have popped by more than 14%. In the past 85 days, the average analyst price target for KTB has increased by $21.31.


DRI shares were trading at $143.97 per share on Tuesday afternoon, up $2.15 (+1.52%). Year-to-date, DRI has gained 21.97%, versus a 15.19% rise in the benchmark S&P 500 index during the same period.


About the Author: Patrick Ryan


Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
DRIGet RatingGet RatingGet Rating
ISDRGet RatingGet RatingGet Rating
KTBGet RatingGet RatingGet Rating

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