9 Best Pizza Stocks to Buy Now

1. Domino’s Pizza, Inc. (NYSE:DPZ)  

Number of Hedge Fund Holders: 52

Upside Potential: 12.47%

Next in line is Domino’s. The company saw a 7.2% growth in global retail sales in Q2 2024, after adjusting for the foreign currency impact. Same-store sales also drove U.S. sales by 6.8%, thanks to the its effective marketing strategy. Furthermore, the company’s pricing improved by 1.5%, along with the Uber Eats platform contributing to its sales by 1.9%.

However, the international market has been on the timid side for Domino’s as its expected net sales growth is down to 175-275 stores, majorly because of instability experienced by Domino’s Pizza Enterprises in openings and closures of its stores internationally; however, the company expects 175 net units’ growth annually by 2028 in the U.S.

On the other side, China and India are turning out to be two very successful regions for the company as the former saw its 1000^th store opening in the country, and expects drastic growth in 2025; this growth is expected to continue as Domino’s effective marketing strategy, in the form of successful Boost weeks, is set to drive the sales growth upwards.

Thus, anticipations are in place for a growth of over 7% in global retail sales in 2024, and operating income is also expected to grow by 8% on a YoY basis; however, margins are expected to be flat due to higher operating expenses.

Given the fact that Domino’s Pizza, Inc. (NYSE:DPZ) has strong growth prospects for the next year or so, and given the strategic plays by the company, analysts seem to be relying on the prospects and hence, 30 analysts have given a buy rating for the stock, and anticipate a 12.5% stock appreciation. This is further supported by hedge fund sentiment; as of Q2 2024, 52 hedge funds are bullish on the stock, which is an increase of 12 hedge fund holders from the prior quarter.

While we acknowledge the potential of DPZ as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than DPZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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