Domino's Pizza (DPZ) shares ended the last trading session 3.1% higher at $330. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 21.3% loss over the past four weeks.
Shares of Domino's Pizza appreciated after BMO Capital upgraded the company from market perform to outperform.
This pizza chain is expected to post quarterly earnings of $2.98 per share in its upcoming report, which represents a year-over-year change of -8%. Revenues are expected to be $1.07 billion, up 7.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Domino's Pizza, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on DPZ going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Domino's Pizza is a member of the Zacks Retail - Restaurants industry. One other stock in the same industry, Papa John's (PZZA), finished the last trading session 1.4% higher at $75.15. PZZA has returned -13.9% over the past month.
For Papa John's , the consensus EPS estimate for the upcoming report has changed -1.9% over the past month to $0.60. This represents a change of -27.7% from what the company reported a year ago. Papa John's currently has a Zacks Rank of #4 (Sell).
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