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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 +2.39% Uptrend, advancing for three consecutive days on May 19, 2025

Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. 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 .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on May 15, 2025. You may want to consider a long position or call options on DPZ as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for DPZ just turned positive on May 16, 2025. Looking at past instances where DPZ's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .

The 10-day moving average for DPZ crossed bullishly above the 50-day moving average on April 22, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .

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 .

Bearish Trend Analysis

The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.

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 .

DPZ broke above its upper Bollinger Band on May 16, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

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

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 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 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 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 (4.868). P/E Ratio (28.272) is within average values for comparable stocks, (42.937). DPZ's Projected Growth (PEG Ratio) (2.902) is slightly higher than the industry average of (1.892). Dividend Yield (0.013) settles around the average of (0.053) among similar stocks. P/S Ratio (3.628) is also within normal values, averaging (8.559).

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 8.28B. The market cap for tickers in the group ranges from 2.74K to 228.67B. MCD holds the highest valuation in this group at 228.67B. The lowest valued company is BFICQ at 2.74K.

High and low price notable news

The average weekly price growth across all stocks in the Restaurants Industry was 0%. For the same Industry, the average monthly price growth was 9%, and the average quarterly price growth was 4%. JDWPY experienced the highest price growth at 40%, while TWNP experienced the biggest fall at -34%.

Volume

The average weekly volume growth across all stocks in the Restaurants Industry was -16%. For the same stocks of the Industry, the average monthly volume growth was -20% and the average quarterly volume growth was 19%

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: 13 (-100 ... +100)
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an operator of specialty restaurants

Industry Restaurants

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