DPZ Should I Buy
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Domino's Pizza Inc (DPZ) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock is currently in a bearish trend, with technical indicators showing oversold conditions but no clear reversal signals. Analysts' ratings and price targets reflect a mixed to cautious outlook, and recent financial performance shows declining net income and EPS despite revenue growth. Hedge funds and insiders are selling, and options data indicates bearish sentiment. While the company's commitment to charitable causes and long-term growth potential are positive, the current market conditions and lack of strong buy signals suggest holding off on investment for now.
The stock is in a bearish trend with MACD negatively expanding (-2.011), RSI at 17.265 indicating oversold conditions, and bearish moving averages (SMA_200 > SMA_20 > SMA_5). The current price is below the pivot level (395.786), with key support at 381.598 and resistance at 409.974.
The company has shown revenue growth of 6.20% YoY in Q3 2025.
Hedge funds and insiders are selling significantly. Analysts have lowered price targets, citing challenges in the restaurant industry. Options data shows bearish sentiment with a high put-call ratio. Financial performance shows declining net income (-5.18% YoY) and EPS (-2.63% YoY).
In Q3 2025, revenue increased by 6.20% YoY to $1.15 billion, but net income dropped by 5.18% YoY to $139.3 million, and EPS declined by 2.63% YoY to 4.08. Gross margin improved slightly to 40.09%, up 2.19% YoY.
Analysts have mixed to cautious views. Recent price target changes include reductions by Citi ($420 from $460), Guggenheim ($450 from $490), and Morgan Stanley ($455 from $535). However, BofA raised its target to $556 from $536, maintaining a Buy rating. The consensus reflects muted expectations and challenges in the restaurant sector for 2026.
