• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Domino's Pizza Still Looks Positive for Continued Gains

Let's review the charts and indicators.
By BRUCE KAMICH
Apr 24, 2020 | 08:35 AM EDT
Stocks quotes in this article: DPZ

For his "Executive Decision" segment, Jim Cramer spoke with Rchard Allison, CEO of Domino's Pizza  (DPZ) , after the company reported a strong quarter that beat estimates on the top and bottom line.

Allison said Domino's is very fortunate to still be open and operating. Demand for their food has been very strong, he said, and that's why they're hiring over 10,000 new team members.

Domino's is also proud to be a part of Feed The Need, a program where they are donating 10 million slices of pizza to those in need.

When asked about the "new normal" after the economy reopens, Allison admitted it is difficult to predict at the moment. He said customers are likely to be very price conscious with unemployment so high, and social distancing may severely limit profitability for many restaurants.

We looked at the charts of DPZ on Monday where we wrote, "Take-out pizza seems to be highly coveted in this new normal. The charts of DPZ are constructive so traders should use available price weakness to go long or add to existing longs. Our price targets are $401 and the $451 area." The price of DPZ declined Thursday so let's review the charts again to see if that was a dip to buy.

In this daily bar chart of DPZ, below, we can see that not much has changed from Monday. The decline of Thursday has not broken the uptrend. Prices are still above the rising moving averages. Trading volume did increase but that is not unusual for an earnings release.

The On-Balance-Volume (OBV) line shows only a minor dip and the Moving Average Convergence Divergence (MACD) oscillator is still bullish.

In this updated weekly bar chart of DPZ, below, the picture remains bullish with all the indicators in a proper alignment and headed higher.

In this first Point and Figure chart of DPZ, below, we can see that prices retreated (column of O's) after making a new high for the move up. The $401 price target is the same as we saw on Monday.

In this weekly Point and Figure chart of DPZ, below, the decline on Thursday has yet to register. $451 is still the price target.

Bottom line strategy: No change - if you recently went long DPZ continue to hold and use a stop below $340 for now.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Earnings | Economy | Investing | Markets | Stocks | Technical Analysis | Trading | Restaurants | Mad Money | Executive Interview

More from Investing

Texas Instruments Still Isn't Computing, So Avoid the Stock

Bruce Kamich
Jul 5, 2022 7:57 AM EDT

The trend of the chipmaker's shares remains down based on its charts.

Recession Worries Build as Earnings Season Beckons

James "Rev Shark" DePorre
Jul 5, 2022 7:46 AM EDT

Earnings season is going to determine where the trend is headed, and right now there is growing concern that there will be some very poor news.

Tuesday Setup, Semiconductor Gut Punch, Tradable July? Stay Inside the Lines

Stephen Guilfoyle
Jul 5, 2022 6:43 AM EDT

Earnings season kicks off in about 10 days. It does not look to the plain eye that analysts are ready.

Bear Market? Recession? Are We There Yet?

Helene Meisler
Jul 5, 2022 6:00 AM EDT

Over the last four decades, a recession has been defined as two quarters or more of negative growth. Apparently, it's not so straightforward anymore.

A REIT With Large Total Return Potential and a Generous Current Yield

Paul Price
Jul 4, 2022 9:00 AM EDT

The safe route is to buy shares, collect the generous dividends and reap the rewards when valuations revert back to normal.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 07:34 AM EDT PAUL PRICE

    A $525,000 Vote of Confidence on Macerich (MAC)

  • 09:49 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Stop Wishing, Hoping, and Praying and Take Control...
  • 07:59 PM EDT PAUL PRICE

    Very Good Quarterly Numbers From Bassett Furniture (BSET)

    Bassett Furniture blew right through analysts es...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login