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Sergey Savastiouk's Avatar
published in Blogs
Apr 17, 2019

Domino's (DPZ, $267.56) climbs +4%, on rating upgrade

Domino’s Pizza shares jumped almost +4% on Wednesday, following a rating upgrade from a Morgan Stanley analyst.

Morgan Stanley analyst John Glass raised his rating on the pizza chain company to overweight from equal weight citing "attractive valuation relative to slower-growing peers." 

Glass also raised his price target on the stock to $283 from $268.

The current consensus estimates of Domino’s same-store sales growth is in the range of 2%-3% for the next two years, compared to the 5%-6% growth over the preceding two years. But according to Glass, the consensus expectation of slower growth is "too bearish based on history for a best-in-class operator".

Related Ticker: DPZ

DPZ in downward trend: 10-day moving average moved below 50-day moving average on June 05, 2025

The 10-day moving average for DPZ crossed bearishly below the 50-day moving average on June 05, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on May 28, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on DPZ as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for DPZ turned negative on May 21, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .

DPZ moved below its 50-day moving average on June 02, 2025 date and that indicates a change from an upward trend to a downward trend.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where DPZ declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

Bullish Trend Analysis

The RSI Indicator entered the oversold zone -- be on the watch for DPZ's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.

The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 8 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DPZ advanced for three days, in of 300 cases, the price rose further within the following month. The odds of a continued upward trend are .

DPZ may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.

The Aroon Indicator entered an Uptrend today. In of 242 cases where DPZ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. DPZ’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock slightly better than average.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (5.226). P/E Ratio (26.847) is within average values for comparable stocks, (42.164). Projected Growth (PEG Ratio) (2.731) is also within normal values, averaging (1.865). Dividend Yield (0.013) settles around the average of (0.057) among similar stocks. P/S Ratio (3.446) is also within normal values, averaging (8.603).

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

Notable companies

The most notable companies in this group are McDonald's Corp (NYSE:MCD), Starbucks Corp (NASDAQ:SBUX), Chipotle Mexican Grill (NYSE:CMG), Yum! Brands (NYSE:YUM), Darden Restaurants (NYSE:DRI), Dominos Pizza Inc (NASDAQ:DPZ), Yum China Holdings (NYSE:YUMC), Shake Shack (NYSE:SHAK), Noodles & Company (NASDAQ:NDLS).

Industry description

The industry includes companies that operate full-service restaurants, fast food restaurants, cafeterias and snack bars. McDonald`s Corporation, Starbucks Corporation, YUM! Brands, Inc. and Restaurant Brands International Inc. are some of the largest U.S. restaurant-owning companies in terms of market capitalization. While restaurant spending could be viewed as discretionary for consumers, some companies in the business have been able to weather economic cycles by establishing strong loyalty among customers over the years. Many of them also have a strong global presence as well.

Market Cap

The average market capitalization across the Restaurants Industry is 8.24B. The market cap for tickers in the group ranges from 2.07K to 219.77B. MCD holds the highest valuation in this group at 219.77B. The lowest valued company is WBBA at 2.07K.

High and low price notable news

The average weekly price growth across all stocks in the Restaurants Industry was 3%. For the same Industry, the average monthly price growth was 7%, and the average quarterly price growth was 2%. RRGB experienced the highest price growth at 94%, while VENU experienced the biggest fall at -26%.

Volume

The average weekly volume growth across all stocks in the Restaurants Industry was 25%. For the same stocks of the Industry, the average monthly volume growth was -1% and the average quarterly volume growth was 59%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 47
P/E Growth Rating: 58
Price Growth Rating: 57
SMR Rating: 70
Profit Risk Rating: 74
Seasonality Score: -5 (-100 ... +100)
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an operator of specialty restaurants

Industry Restaurants

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