Latest news with #DPZ
Business Insider
2 days ago
- Business
- Business Insider
Domino's Pizza price target raised to $490 from $465 at Wells Fargo
Wells Fargo raised the firm's price target on Domino's Pizza (DPZ) to $490 from $465 and keeps an Equal Weight rating on the shares. The company's Q2 nicely beat on U.S. comps, and at least 3% comps growth in FY25 looks 'increasingly doable,' the analyst tells investors in a research note. The firm added that it is surprised the shares weren't higher, but major 2025 catalysts seem behind, flow-through was modest, and material upside looks limited. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Business Insider
2 days ago
- Business
- Business Insider
BTIG Remains a Buy on Domino's Pizza (DPZ)
BTIG analyst Peter Saleh reiterated a Buy rating on Domino's Pizza today and set a price target of $530.00. The company's shares closed today at $462.24. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. According to TipRanks, Saleh is a 5-star analyst with an average return of 11.5% and a 63.16% success rate. Saleh covers the Consumer Cyclical sector, focusing on stocks such as Wingstop, Darden Restaurants, and Domino's Pizza. In addition to BTIG, Domino's Pizza also received a Buy from Morgan Stanley's Brian Harbour in a report issued today. However, on the same day, Citi reiterated a Hold rating on Domino's Pizza (NASDAQ: DPZ). DPZ market cap is currently $15.96B and has a P/E ratio of 26.71. Based on the recent corporate insider activity of 75 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DPZ in relation to earlier this year. Most recently, in May 2025, James A. Goldman, a Director at DPZ sold 385.00 shares for a total of $186,644.15.
Yahoo
2 days ago
- Business
- Yahoo
Domino's Pizza Generates Strong Q2 Free Cash Flow - DPZ Stock Looks Cheap
Domino's Pizza (DPZ) announced strong Q2 results this morning, showing free cash flow FCF up over 31% YoY with a high FCF margin. DPZ stock is undervalued here, worth over 21% more, or $566.00 per share. Shorting OTM puts is a way to buy in cheaply. DPZ is lower at $464.76 in midday trading. That is well off its high point of $497.52 on May 19. More News from Barchart Option Volatility And Earnings Report For July 21 - 25 How to Make a 3.0% One-Month Yield By Shorting UBER Puts What Gamma Exposure is Saying About Alphabet Stock Ahead of Earnings Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! It presents a unique buy-in opportunity for value investors. This article will show that, based on its FCF margin history and a 3.9% FCF yield metric, it could be worth 21% more at $566.45. And it could be worth much more based on its historic dividend yield metrics. Domino's Pizza Strong Results Monday morning, July 21, Domino's Pizza reported that its revenue rose +4.3% YoY and U.S. same-store sales growth was up 3.4% (int'l rose +2.4%). More importantly, Domino's showed strong free cash flow (FCF) performance. It generated $331.7 million in FCF over the past 2 quarters, up 43.9% YoY. Moreover, in Q2 it generated $167.3 million in FCF, up +1.81% from Q2, according to Stock Analysis. This is important since it shows that Domino's has now generated two quarters with over 14% FCF margins (i.e., FCF/revenue). In Q2, its FCF margin was 14.61% and in Q1, it made a 14.78% FCF margin, according to Stock Analysis. In the past 2 quarters, that average was 14.7%, as seen from data on page 2 of its Q2 earnings release (see table below). That implies that Domino's is squeezing large amounts of cash out of its operations. As a result, we can project higher FCF for the company over the next 12 months (NTM). Forecasting FCF Analysts project 2025 sales will be $4.94 billion and $5.27 billion in 2026. That means its NTM sales forecast is $5.1 billion. So, applying the 14.7% FCF margin: $5.1b x 0.147 = $750 million FCF That is +22% higher than the trailing 12 months (TTM) FCF of $613.2 million, according to Stock Analysis. In other words, DPZ stock could be significantly undervalued if this occurs. But how much? Target Price Based on FCF One way to value DPZ stock using this FCF forecast is to use a FCF yield metric. For example, DPZ's market cap today is $15.778 billion (based on 33.9489 million shares outstanding at $464.76). That implies that its TTM FCF of $613.2 million represents 3.886% of its market value (i.e., a 3.9% FCF yield). Therefore, we can apply that metric (assuming the same valuation lasts over the next 12 months) to our FCF forecast: $750m NTM FCF / 0.039 = $19.231 billion mkt value That is +21.88% higher than today's $15.778 billion market cap. In other words, DPZ could be worth 21.9% more over the next 12 months: $464.76 x 1.2188 = $566.45 target price There are other ways to value DPZ stock. One way is to use its historic dividend yield. Target Price Using Dividend Yield For example, right now, based on Domino's quarterly $1.74 dividend per share (DPS), its annual yield is 1.50%: $1.74 x 4 = $6.96/$464.76 = 0.01497 = 1.50% But historically, based on Morningstar's calculations, its average yield has been lower at 1.02% over the last 5 years. Yahoo! Finance says it's been 1.08%. So, using this higher average we can estimate where DPZ should trade if it reverts to this mean yield: $6.96 DPS / 0.0108 = $644.44 target price That provides an investor with a potential upside of +39% from today's price. Another way to value the stock is to use analysts' target prices. Target Price Using Analysts' Projections Analysts surveyed by Barchart have a mean price target of $509.55, and Yahoo! Finance reports that 32 analysts have an average of $505.35. Similarly, Stock Analysis reports that 23 analysts have a price average of $486.83, but AnaChart's survey of 26 analysts is $514.19. So, the mean analyst survey price is $503.98, or +8.4% over today's price. Summary of Price Targets So, using these three valuation methods, we can estimate its price target at: FCF Yield target ………. $566.45 Dividend Yield ………… $644.44 Analysts' targets …….. $503.98 Average Price Target … $571.62, or +22.9% higher than today The bottom line here is that DPZ stock looks deeply undervalued. One way to play this is to set a lower buy-in price by shorting out-of-the-money (OTM) put options. Shorting OTM Puts For example, the August 15 expiration period shows that the $440.00 strike price put option, 4.8% below today's price, has a $3.75 premium. That provides a short seller an immediate yield of 0.852% (i.e., $3.75/$440.00). Moreover, the 450.00 strike price put has a $6.10 premium. A short seller can make an immediate yield of 1.1356% (i.e., $6.10/$450.00). As a result, using a 50/50 mix of these two strike prices, an investor could set a lower buy-in of $445 and make 1.111% on average ($4.925/$445) over the next 25 days. That sets a buy-in that is about 4.3% below today's price and provides a good breakeven of just $440.07 per share (i.e., $445-$4.93). That is over 5.3% below today's price, so it provides good downside protection to investors. Moreover, note that the delta ratio, i.e., the risk of this strike price being assigned based on historical variance, is low at between 20% and 30%. The bottom line here is that DPZ stock looks deeply undervalued, and one way to set a good buy-in point is to short OTM puts. On the date of publication, Mark R. Hake, CFA did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
2 days ago
- Business
- Yahoo
Big Q2 Earnings Week Awaits: Pre-Market Futures Up Slightly
Monday, July 21, 2025Pre-market futures are up to start a fresh trading week, though indexes are currently coming down from where they were earlier in early-morning trading. The Dow is currently +70 points, the S&P 500 is +10, the Nasdaq has gained +25 points thus far and the small-cap Russell 2000 keeps its catch-up trade levels, +13 points at this hour. We remain off highs from the first half of the month, but those also happen to be all-time highs. Q2 Earnings Ahead of the Bell: CLF, DPZ U.S.-based steelmaker Cleveland-Cliffs CLF outperformed expectations on both top and bottom lines this morning, with a slimmer-than-expected loss of -$0.50 per share an improvement over the -$0.68 projected. Revenues of $4.93 billion bettered the Zacks consensus by +0.62%. Shares are up +4.5% on the news. During the quarter, a 50% tariff was slapped on foreign steel imports, but the view forward is cloudier on trade policy. For more on CLF's earning, click Pizza DPZ had a mixed performance in its Q2 results this morning, missing by -3% on its bottom line with earnings of $3.81 per share (its second miss in its last three quarters) but improving on revenues above expectations to $1.15 billion, +4.3% year over year. Shares are up +3% in pre-market trading, +11% year to date. (You can see the full Zacks Earnings Calendar here.) U.S. LEI Comes Out After Market Opens The U.S. Leading Economic Indicators (LEI) report for June hits the tape after the opening bell this morning, with expectations for a further drift downward to -0.2% from May's -0.1%. In last month's report, Average Consumer Expectations for Business Conditions fell nearly as far as the S&P 500 index LEI numbers have been negative over the past six months, with moving goalposts regarding tariff policy have kept business owners on their heels somewhat. In the May report, a recession signal was triggered — referenced somewhat in last week's extraordinary interview with Zacks Chief Economist John Blank in the Zacks Market Edge podcast, which can be viewed here. What to Expect from the Stock Market This Week Q2 earnings season heats up in a serious way, with more than 20% on the S&P 500 scheduled to report before the end of this trading week. Headliners come Wednesday, after the closing bell, with Google parent Alphabet GOOGL and challenged EV leader Tesla TSLA both reporting quarterly carries a Zacks Rank #3 (Hold) as of this morning, and is expected to see advertising revenues improve. Earnings are expected to have risen +13.2% in the quarter, with overall revenues +11.1%. Tesla has a Zacks Rank #4 (Sell) rating with a Value-Growth-Momentum grade of 'F' as of this morning; expectations for its Q2 earnings are -23.1% year over year, and -11.9% on the revenue this week, even though we lighten up from last week's heavy dollop of economic reports, Existing & New Home Sales, S&P flash Services and Manufacturing PMI and Durable Goods Orders are all expected to be released. Expectations are mixed for these data points; we look forward to some of this murkiness lifting upon results being or comments about this article and/or author? Click here>> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Domino's Pizza Inc (DPZ) : Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
U.S. Stock Futures Muted to Start a New Week
Pre-market futures are up to start a fresh trading week, though indexes are currently coming down from where they were earlier in early-morning trading. The Dow is currently +70 points, the S&P 500 is +10, the Nasdaq has gained +25 points thus far and the small-cap Russell 2000 keeps its catch-up trade levels, +13 points at this hour. We remain off highs from the first half of the month, but those also happen to be all-time highs. Q2 Earnings Ahead of the Bell: CLF, DPZ U.S.-based steelmaker Cleveland-Cliffs CLF outperformed expectations on both top and bottom lines this morning, with a slimmer-than-expected loss of -$0.50 per share an improvement over the -$0.68 projected. Revenues of $4.93 billion bettered the Zacks consensus by +0.62%. Shares are up +4.5% on the news. During the quarter, a 50% tariff was slapped on foreign steel imports, but the view forward is cloudier on trade policy. \Domino's Pizza DPZ had a mixed performance in its Q2 results this morning, missing by -3% on its bottom line with earnings of $3.81 per share (its second miss in its last three quarters) but improving on revenues above expectations to $1.15 billion, +4.3% year over year. Shares are up +3% in pre-market trading, +11% year to date. U.S. LEI Comes Out After Market Opens The U.S. Leading Economic Indicators (LEI) report for June hits the tape after the opening bell this morning, with expectations for a further drift downward to -0.2% from May's -0.1%. In last month's report, Average Consumer Expectations for Business Conditions fell nearly as far as the S&P 500 index LEI numbers have been negative over the past six months, with moving goalposts regarding tariff policy have kept business owners on their heels somewhat. In the May report, a recession signal was triggered — referenced somewhat in last week's extraordinary interview with Zacks Chief Economist John Blank in the Zacks Market Edge podcast. What to Expect from the Stock Market This Week Q2 earnings season heats up in a serious way, with more than 20% on the S&P 500 scheduled to report before the end of this trading week. Headliners come Wednesday, after the closing bell, with Google parent Alphabet GOOGL and challenged EV leader Tesla TSLA both reporting quarterly carries a Zacks Rank #3 (Hold) as of this morning, and is expected to see advertising revenues improve. Earnings are expected to have risen +13.2% in the quarter, with overall revenues +11.1%. Tesla has a Zacks Rank #4 (Sell) rating with a Value-Growth-Momentum grade of 'F' as of this morning; expectations for its Q2 earnings are -23.1% year over year, and -11.9% on the revenue this week, even though we lighten up from last week's heavy dollop of economic reports, Existing & New Home Sales, S&P flash Services and Manufacturing PMI and Durable Goods Orders are all expected to be released. Expectations are mixed for these data points; we look forward to some of this murkiness lifting upon results being revealed. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Domino's Pizza Inc (DPZ) : Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
