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Domino's Pizza (DPZ) Gains But Lags Market: What You Should Know
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In the latest trading session, Domino's Pizza (DPZ - Free Report) closed at $419.36, marking a +0.09% move from the previous day. The stock lagged the S&P 500's daily gain of 0.36%. At the same time, the Dow lost 0.21%, and the tech-heavy Nasdaq gained 0.76%.
Prior to today's trading, shares of the pizza chain had gained 7.54% over the past month. This has lagged the Retail-Wholesale sector's gain of 9.43% and outpaced the S&P 500's gain of 6.9% in that time.
Investors will be hoping for strength from DPZ as it approaches its next earnings release. In that report, analysts expect DPZ to post earnings of $2.67 per share. This would mark year-over-year growth of 30.24%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $933.35 million, up 13.71% from the year-ago period.
DPZ's full-year Zacks Consensus Estimates are calling for earnings of $12.75 per share and revenue of $4.05 billion. These results would represent year-over-year changes of +33.23% and +11.91%, respectively.
Investors should also note any recent changes to analyst estimates for DPZ. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.62% higher. DPZ is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note DPZ's current valuation metrics, including its Forward P/E ratio of 32.87. For comparison, its industry has an average Forward P/E of 37.52, which means DPZ is trading at a discount to the group.
Also, we should mention that DPZ has a PEG ratio of 2.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. 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 122, which puts it in the top 49% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Domino's Pizza (DPZ) Gains But Lags Market: What You Should Know
In the latest trading session, Domino's Pizza (DPZ - Free Report) closed at $419.36, marking a +0.09% move from the previous day. The stock lagged the S&P 500's daily gain of 0.36%. At the same time, the Dow lost 0.21%, and the tech-heavy Nasdaq gained 0.76%.
Prior to today's trading, shares of the pizza chain had gained 7.54% over the past month. This has lagged the Retail-Wholesale sector's gain of 9.43% and outpaced the S&P 500's gain of 6.9% in that time.
Investors will be hoping for strength from DPZ as it approaches its next earnings release. In that report, analysts expect DPZ to post earnings of $2.67 per share. This would mark year-over-year growth of 30.24%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $933.35 million, up 13.71% from the year-ago period.
DPZ's full-year Zacks Consensus Estimates are calling for earnings of $12.75 per share and revenue of $4.05 billion. These results would represent year-over-year changes of +33.23% and +11.91%, respectively.
Investors should also note any recent changes to analyst estimates for DPZ. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.62% higher. DPZ is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note DPZ's current valuation metrics, including its Forward P/E ratio of 32.87. For comparison, its industry has an average Forward P/E of 37.52, which means DPZ is trading at a discount to the group.
Also, we should mention that DPZ has a PEG ratio of 2.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. 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 122, which puts it in the top 49% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.