DPZ Sizzles After Same-Quarter Sales Bounce

No less than four analysts lifted their price targets

Deputy Editor
May 27, 2020 at 10:53 AM
facebook twitter linkedin

The shares of Domino's Pizza, Inc. (NYSE:DPZ) are up 0.8% to trade at $363.38 after the pizza chain said it saw a 14% bounce in same-store sales in the U.S. during the first two months of its current quarter, while its international sales rose just 1% in the same time period. The news sparked no less than four price-target hikes from analysts. The most notable came from J.P. Morgan Securities, which raised its price target by $20 to $400.

Analysts are leaning toward an optimistic outlook for DPZ. Of the 20 in coverage, 11 brokerages rate it a "buy" or better, while the remaining nine all sport a "hold." More price-target hikes could be in store, as the 12-month consensus target price of $386.75 sits at a modest 6.4% premium to current levels. 

Since its mid-March dip, DPZ has managed an impressive bounceback, eclipsing its late-February peak on April 22 to reach an all-time high of $387.85. Since then,  shares have been consolidating just below this level, with support emerging at the 40-day moving average this week. For the year, DPZ is up 23%. 

In the options pits, calls have been dominant. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DPZ sports a 50-day call/put volume ratio of 2.16 that ranks in the elevated 97th percentile of its annual range, meaning this rate of calls bought relative to puts is out of the norm.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners