Domino's Pizza (DPZ) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Domino's Pizza (DPZ) closed at $332.58, marking a -0.36% move from the previous day. This move lagged the S&P 500's daily gain of 2.28%. At the same time, the Dow added 2.24%, and the tech-heavy Nasdaq gained 1.72%.

Coming into today, shares of the pizza chain had lost 2.38% in the past month. In that same time, the Retail-Wholesale sector lost 10%, while the S&P 500 lost 16.08%.

Investors will be hoping for strength from DPZ as it approaches its next earnings release. The company is expected to report EPS of $2.34, up 6.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $872.98 million, up 4.43% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.28 per share and revenue of $3.86 billion. These totals would mark changes of +7.42% and +6.69%, respectively, from last year.

Any recent changes to analyst estimates for DPZ should also be noted by investors. These revisions help to show the ever-changing nature of 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 5.38% lower within the past month. DPZ is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that DPZ has a Forward P/E ratio of 32.46 right now. This valuation marks a premium compared to its industry's average Forward P/E of 16.89.

Meanwhile, DPZ's PEG ratio is currently 2.62. 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. DPZ's industry had an average PEG ratio of 1.83 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 149, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Domino's Pizza Inc (DPZ): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.