Dominos Pizza is the market leader when it comes to pizza delivery chains. The company has more than 17,000 locations worldwide as of 2020. The company has doubled its locations in the last 15 years and gained market share due to its ability to deliver pizzas in the shortest possible time. Dominos has also successfully transformed itself into a tech-enabled operation that positions it well for long term post-pandemic growth. The prospects of Dominos look good.
The long-term monthly chart for Dominos shows a consistent uptrend that has accelerated in recent years. There have been a couple of pullbacks in 2018-2019 and in 2020. The $370 level has proven to be an important support zone during the last few months. The most recent pullback in October 2020 found support at the $370 level and the price now looks poised to bounce back up and retest the $425-$435 levels touched back in September and October of 2020. A higher risk stop loss can be placed around the $360 level.
Position entered into our long term tracking portfolio today. The entry point is at $382.97 and the stop loss is placed at $263.71 which is 31% below the entry point. The short-term to medium take profit is set at $483.90 giving a profit of 26%.
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.