It's Time to Buy the Dip on Domino's Pizza Stock, Says Analyst

The firm cut its price target to $385, however

Deputy Editor
Oct 4, 2022 at 9:05 AM
facebook twitter linkedin

Shares of Domino's Pizza, Inc. (NYSE:DPZ) are up 3.3% at $326.99 premarket, following an upgrade from UBS. Though the analyst cut its price target on DPZ to $385 from $430, it raised its rating to "buy" from "neutral," saying the demand for pizza is strong and concerns for demand weakness are overblown. In its note, UBS cites several catalysts for the pizza chain, including "price increases on select promos, efforts to improve driver staffing shortages, and potential third-party delivery partnerships."

The majority of covering brokerages lean pessimistic, as 16 of 22 still rate Domino's pizza stock a "hold" or worse, which means additional bull notes could soon be on the way.

The options pits are similarly bearish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DPZ sports a 50-day put/call volume ratio of 1.11, which stands higher than 86% of other readings from the past year. In simpler terms, this implies a particular penchant for bearish bets amongst options traders.

Domino's Pizza stock tumbled briefly yesterday, touching a two-year low of $300.63, before the equity went on to bounce and turn in a victory. Today's pop, should it hold, will put the security back above the $320 area that acted as a floor back in May. Coming into today, DPZ was down 43.9% year-to-date.


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