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

Zacks Equity Research

Domino's Pizza (DPZ) closed at $383.58 in the latest trading session, marking a -0.59% move from the prior day. This change lagged the S&P 500's 0.38% gain on the day. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.66%.

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 $2.14 per share. This would mark a year-over-year decline of 2.28%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $876.24 million, up 7.96% from the year-ago period.

DPZ's full-year Zacks Consensus Estimates are calling for earnings of $11.14 per share and revenue of $3.90 billion. These results would represent year-over-year changes of +16.41% and +7.9%, respectively.

It is also important to note the recent changes to analyst estimates for DPZ. 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. 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. Within the past 30 days, our consensus EPS projection has moved 2.63% higher. DPZ currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, DPZ is holding a Forward P/E ratio of 34.64. This valuation marks a discount compared to its industry's average Forward P/E of 38.47.

Meanwhile, DPZ's PEG ratio is currently 2.71. 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. DPZ's industry had an average PEG ratio of 4.54 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 121, putting it in the top 48% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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