Domino’s Pizza – Algo Buy

Domino’s Pizza Enterprises is under Algo Engine buy conditions and is among the best-performing stocks in our ASX 100 model portfolio. The stock is up 74% since being added in November last year.

The recent pullback and higher low formation has generated another entry reminder. Accumulate DMP within the $115 to $135 price range.

1/11 update: DMP continues to see buying interest build above the $135 support level.

Domino’s Pizza – Algo Signal

Domino’s Pizza Enterprises is now under Algo Engine buy conditions and is a current holding in our ASX model portfolio.

We see price support between $65 & $71.

Domino’s Pizza Enterprises has now rallied 10% from our entry-level. While DMP’s PE multiple remains elevated at 34x forward earnings, EPS growth is forecast to be 8 -10% and the FY21 yield is 1.9%.

We suggest traders use the short-term momentum indicators as a strategy to manage the timing of taking the short-term. We don’t consider Domino’s Pizza Enterprises a core portfolio holding and feel it makes greater sense to trade rather than hold.