Domino's Pizza Upgraded to Buy
NEW YORK (TheStreet) -- Domino's Pizza(DPZ) was upgraded to buy from hold by TheStreet Ratings on Thursday.
The stock has been on a tear since its fourth-quarter earnings announcement on Feb. 28. The company reported fourth-quarter net income of $30.9 million, or 52 cents a share, up from year-ago earnings of $24.2 million, or 40 cent. The stock hit a 52-week high of $36.17 on the same day it reported earnings.
Shares hit another 52-week high on Wednesday of $39.92. The stock's 52-week low of $16.88 was set on March 15.
Jim Cramer said Domino's is a buy at about $35.
Domino's Pizza has an estimated price-to-earnings ratio for next year of 17.43 times; the average or restaurant and bar companies is 19.26. For comparison, Papa John's International(PZZA) has a lower forward P/E of 13.6; Buffalo Wild Wings'(BWLD) forward P/E is 22.17.
Twelve of the 16 analysts who cover Domino's Pizza rated it a hold; four analysts gave the stock a buy rating.
TheStreet Ratings gives Domino's Pizza a B grade and a $50.58 price target. The stock closed Wednesday at $39.48 and has risen 16.29% year to date.
-- Written by Alexandra Zendrian
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