While neither a technology nor an artificial intelligence (AI)-focused company in a stock market that heavily favors such firms, Domino’s Pizza (NYSE: DPZ) has, nonetheless, seen its shares rise significantly throughout the last 52 weeks.
While growth has been relatively slow for the fast-food chain since the start of January, DPZ saw a major surge upon releasing its Q4 earnings report in the pre-market on Monday, February 26.
The surge was largely driven by Domino’s reporting strong growth and managing to beat forecasts with revenue of $1.403 billion and earnings per share (EPS) of $4.48.
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The company also brought two additional exciting announcements to investors – a boost of the DPZ stock buyback program with another $1 billion and a 25% increase in dividends.
The decision now means that each Domino’s share an investor holds will net them $1.51 each quarter – $6.04 each year. Therefore, a $10,000 investment in DPZ at its press time price of $464.37 would yield as much as $130.07 annually.
DPZ stock price chart
The strong report and the buyback and dividend announcement had an immediate effect on Domino’s stock as it opened 7.08% in the green on Monday, February 26, at $464.37.
The surge represents a significant upward escalation to DPZ stock’s 2024 growth, which has seen the pizza giant rise 12.27% year-to-date. It also represents more than three-quarters of Domino’s 30-day growth of 10.33% and of the fast-food firm’s 9.44% 7-day rise.
Will DPZ stock continue rising?
Technical analysis (TA) reveals that Domino’s shares are likely to continue increasing in value in the wake of its recent stock market performance, growth of its business, and the announced boost for the buyback program and dividend yields.
Oscillators and moving averages based on DPZ’s performance in the last 30 days and the last 7 days rate the stock as a “buy” and a “strong buy” respectively, giving it an overall ranking of a “strong buy,” based on the data retrieved from TradingView.
Technical analysis based on the latest 24 hours of trading, however, is somewhat less bullish, with oscillators turning neutral on Domino’s.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
