Domino’s Pizza, Inc. (DPZ): The Best Way To Profit From This $32 Billion Industry

Consumers have noticed the improvement and are lifting the company’s bottom line. Domino’s same-store sales soared 6.7% in the U.S. and 5.8% internationally in its most recent quarter from a year ago. In addition, the company reported a 19% rise in income. Domino’s credits its new handmade pan pizza as the driver for the current upswing in results.

(Full disclosure: While researching this stock, I ordered a Domino’s handmade pan pizza to see what all the hype was about. I was not disappointed. This is a refined product that has all the factors that make a pizza great. In this world of corporate blandness, it’s refreshing to eat something of such quality.)

In the technical picture, shares have bounced from the 50-day simple moving average and are making an assault on the 52-week high of $64. Shares have been in an uptrend since April 25, with the 50-day moving average acting as solid support.

Risks to Consider: Domino’s has the risk of a competitor making a better pizza. Consumer tastes are fickle and can change at any time. In addition, the company is sensitive to the economy as people spend less in restaurants during economic slowdowns. Always be sure to use stops and position size properly when investing.

Action to Take –> I strongly think that Domino’s has cracked the taste barrier for pizza chains. This means more consumers, after trying a Domino’s pie, will be likely to become steady customers. Therefore, I like Domino’s as an investment when the high price of $64 is broken on the upside, or when the price drops back to the 50-day simple moving average support level. My 12-month target is $75 on the shares.

P.S. — What pairs nicely with a pizza? Soda, of course — but did you know there’s a soda company that’s growing profits 12 times faster than Coke and 60 times faster than Pepsi? Click here to get the name of this stock now while it’s still largely unknown.

The article The Best Way To Profit From This $32 Billion Industry originally appeared on StreetAuthority.com and is written by David Goodboy.

	Domino’s same-store sales soared 6.7% in the U.S. and 5.8% internationally in its most recent quarter from a year ago.