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Wednesday, August 22, 2018

=DPZ — is it a buy?

(source) IBD Stock Of The Day: Stock With 1,000% Gain Nears New Buy Point

MICHAEL LARKIN  22 Aug 2018   4:41 PM ET

Domino's Pizza (DPZ) is the IBD Stock of the Day as it gets set to top its all-time high after forming a bullish base.

The stock is closing in on a buy point from a cup-with-handle base, one of the most successful of all chart patterns. It has formed a second-stage base with a correct entry of 295.34. The fact that trading has been light during the handle stage is another bullish sign.

Domino's shares closed up 1.45% at 291.54 on the stock market today. It has been a good year so far for the stock, as it is currently up around 54%. In addition, it has jumped by about 1,000% since breaking out from a similar cup base in 2011.

The stock's relative strength line is trending up, while it is well clear of its 50-day line, a key level of technical support.

The firm has impressive fundamentals, which is represented by its excellent, but not quite ideal, IBD Composite Rating of 94. In addition, the stock has an eye-catching EPS Rating of 97, which puts it in the top 3% of stocks in this important metric, which tracks earnings-per-share growth.

Domino's share price is recovering after sliding on a revenue and same-store-sales miss. It fell despite earnings topping estimates last month.

Restaurant analyst Mark Kalinowski, of Kalinowski Equity Research, previously attributed Domino's revenue gains to several factors.

These include technological advantages over other pizza companies, as more customers order online and via their smartphones. He also cited a value deal the chain has had in place for nearly 10 years: two medium pizzas with two toppings for $5.99 apiece.

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