Overweight DPZ

9. Okt. 2020

DPZ is in the penalty box for a profit miss on recent earnings + downward analyst price target revisions. Risings costs can comfortably be passed through to their loyal & growing (+17.5% same store sales growth) customer base. Their web & mobile UI/UX remains unparalleled and by the way, the pizza is still AMAZING. I recommend trying their pizza with the garlic parmesan white sauce instead of the default robust tomato sauce. Management has navigated this pandemic better than any of their competitors and continue to focus on gaining market share as football season and cold weather sets in. Let's talk valuation - if you think a 33 PE is expensive, look at Chipotle's (CMG) 142 multiple and tell me which has more multiple upside on any downtick in food prices? The generational buy was the 200DMA (pandemic bottom/blue squiggly line) and as tempting as it is to drop some resting bids there, I can't imagine even a partial re-shutdown takes DPZ that low as support developed above the 0.382 fibonacci retracement on the current uptrend. On a relative strength basis, DPZ appears to be close to bottoming here. I'll be averaging in from here to $380-375. I like this for the long run but shorter time horizons can look to take profit or take out their cost basis at about $420 (har har Elon) to play the range or with the house's money beyond that intermediate resistance. NOT INVESTMENT ADVICE. DYOH. Be safe, trade safe!

3. Mai 2021

Trade geschlossen: Ziel wurde erreicht

Shorter term time horizons ought to take profit here.