Domino's Pizza (DPZ) Moves 11.1% Higher: Will This Strength Last?
Domino's Pizza (DPZ) shares soared 11.1% in the last trading session to close at $388.59. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.9% gain over the past four weeks.
Shares of Domino's jumped after it announced a new global agreement with Uber to provide delivery offerings. The initial U.S. rollout of the agreement will begin in the fall in four pilot markets, and ordering through the Postmates and Uber Eats apps is expected to be available nationwide by 2023-end. Positive investor sentiments were witnessed as the company cited potential for incremental orders from Uber Eats to 70% of Domino's stores around the world, including the United States.
This pizza chain is expected to post quarterly earnings of $3.03 per share in its upcoming report, which represents a year-over-year change of +7.5%. Revenues are expected to be $1.07 billion, up 0.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with 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, Wingstop (WING), finished the last trading session 3.4% higher at $195.43. WING has returned 0.4% over the past month.
For Wingstop , the consensus EPS estimate for the upcoming report has changed +1.9% over the past month to $0.50. This represents a change of +11.1% from what the company reported a year ago. Wingstop currently has a Zacks Rank of #2 (Buy).
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