What's Happening with DPZ
Domino's Pizza (DPZ) reports third-quarter earnings before the market open October 8 with the consensus calling for earnings of $2.05 per share. During the same period last year the company earned $1.95 per share, and the stock has fallen a modest 2.1% on the year.
Technical Analysis
DPZ was recently trading at $242.21 down $59.84 from its 12-month high and $21.31 above its 12-month low. InvestorsObserver's Stock Score Report gives DPZ a 37 long-term technical score and a 42 short-term technical score. The stock has recent support above $225 and recent resistance below $250. Of the 16 analysts who cover the stock 10 rate it Strong Buy, 1 rate it Buy, 4 rate it Hold, 0 rate it Sell, and 1 rate it Strong Sell, DPZ gets a score of 47 from InvestorsObserver's Stock Score Report.
Analysts' Thoughts
DPZ has traded lower on the year, due in part to a string of revenue misses. The company has posted weaker than expected sales each of the last five quarters which has kept pressure on the stock. The July selloff following the disappointing Q2 numbers drove the stock to its 52-week low. DPZ has started to recover but remains in the lower end of its 52-week range and faces a stiff level of resistance at $250. Despite trading in the lower end of its 52-week range, the stock is still trading at a high valuation at 27 times earnings, which leaves additional downside risk on another negative surprise. The 16 analysts that cover the stock have an average price target of $280, which suggests 15.7% upside.