Allison said Domino's saw a pickup in sales this quarter and was able to sustain those levels, He said customers were quick to adopt their new contactless takeout and delivery options and new customer acquisitions were particularly strong for delivery throughout the quarter.
Allison noted that on average, 75% of Domino's orders are now digital, with highs peaking over 80%.
Let's check and see if we shou about the stock.
In the daily bar chart of DPZ, below, we can see that the shares have pushed up to new highs this month. DPZ is trading above the rising 50-day moving average line and the rising 200-day moving average line.
The On-Balance-Volume (OBV) line has moved higher the past 12 months telling us that buyers of DPZ have been more aggressive. The Moving Average Convergence Divergence (MACD) has been most bullish since February when prices made a strong upside price gap.
In the weekly bar chart of DPZ, below, we can see that prices broke out on the upside from a two-year consolidation pattern. Prices are above the rising 40-week moving average line.
The weekly OBV line has been strong and so has the MACD oscillator.
In this Point and Figure chart of DPZ, below, we used daily price data. A potential price target of $527 is being indicated.
Bottom-line strategy: Continue to hold longs from previous recommendations. Raise stop protection to a close below $360 now. The $527 area is our new price target.