Domino's Pizza (DPZ) Gains As Market Dips: What You Should Know
In the latest trading session, Domino's Pizza (DPZ) closed at $404.97, marking a +1.86% move from the previous day. This change outpaced the S&P 500's 1.16% loss on the day. Meanwhile, the Dow lost 1.84%, and the Nasdaq, a tech-heavy index, lost 0.13%.
Prior to today's trading, shares of the pizza chain had lost 4.96% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.74% and the S&P 500's loss of 1.96% in that time.
DPZ will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.72, up 32.68% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $941.55 million, up 14.71% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.83 per share and revenue of $4.06 billion. These totals would mark changes of +34.06% and +12.28%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for DPZ. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.69% higher within the past month. DPZ is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note DPZ's current valuation metrics, including its Forward P/E ratio of 30.98. This valuation marks a discount compared to its industry's average Forward P/E of 32.8.
It is also worth noting that DPZ currently has a PEG ratio of 2.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants was holding an average PEG ratio of 3.71 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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