Domino's Pizza ( NYSE: DPZ ) rose 1.75% in early trading on Wednesday and was one of the top gainers in the S&P 500 Index. The broad market fell after the June inflation report came in stronger than anticipated.
The restaurant stock has attracted attention recently from firms like Deutsche Bank as a potential defensive play within the restaurant sector and broader consumer discretionary group. Bank of America also highlighted DPZ as an "Alpha Surprise" after factoring in a dividend discount model and earnings surprise model. Meanwhile, Oppenheimer's bull case on DPZ is based partially on anticipation that new management could utilize third-party partnerships to improve fundamentals. Other firms have noted Domino's ( DPZ ) can benefit when consumers trade down with their restaurant decisions, a trend that may be seen in Q3 and Q4.
Domino's Pizza ( DPZ ) is due to report earnings on July 21. See the latest consensus estimates on the pizza chain stock and the recent earnings history.
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Domino's Pizza is a surprise gainer after hot inflation print