Domino's Pizza (DPZ) Stock Sinks As Market Gains: What You Should Know

Domino's Pizza (DPZ) closed at $316.63 in the latest trading session, marking a -0.15% move from the prior day. This move lagged the S&P 500's daily gain of 9.28%. At the same time, the Dow added 9.36%, and the tech-heavy Nasdaq gained 9.34%.

Heading into today, shares of the pizza chain had gained 10.87% over the past month, outpacing the Retail-Wholesale sector's loss of 21.74% and the S&P 500's loss of 26.56% in that time.

DPZ will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.38, up 8.18% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $876.73 million, up 4.88% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.89 per share and revenue of $3.94 billion. These totals would mark changes of +13.79% and +8.75%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for DPZ. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.6% higher. DPZ is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that DPZ has a Forward P/E ratio of 29.12 right now. Its industry sports an average Forward P/E of 12.98, so we one might conclude that DPZ is trading at a premium comparatively.

Investors should also note that DPZ has a PEG ratio of 2.18 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DPZ's industry had an average PEG ratio of 1.56 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.