Domino's Pizza, Inc. is a pizza company with a significant business in both delivery and carryout pizza. Co. operates through three segments: U.S. stores, international franchise, and supply chain. The U.S. stores segment is comprised primarily of its franchise operations, which consists of franchised stores located in the U.S.. The segment also operates a network of U.S. Co.-owned stores. The international franchise segment primarily includes operations related to the Co.'s franchising business in foreign markets. The supply chain segment primarily includes the distribution of food, equipment and supplies to stores from the Co.'s supply chain center operations in the U.S. and Canada.
When researching a stock like Dominos Pizza, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from DPZ Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for DPZ stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of these ways is called the Relative Strength Index, or RSI. This popular indicator, originally developed in the 1970's by J. Welles Wilder, looks at a 14-day moving average of a stock's gains on its up days, versus its losses on its down days. The resulting DPZ RSI is a value that measures momentum, oscillating between "oversold" and "overbought" on a scale of zero to 100. A reading below 30 is viewed to be oversold, which a bullish investor could look to as a sign that the selling is in the process of exhausting itself, and look for entry point opportunities. A reading above 70 is viewed to be overbought, which could indicate that a rally in progress is starting to get crowded with buyers. If the rally has been a long one, that could be a sign that a pullback is overdue. |
49.18
Free DPZ Email Alerts:
Video: RSI Indicator