FYI | Oct 03 2011
Daily update on share prices and consensus price targets.
By Rudi Filapek-Vandyck
It takes a strong story with solid fundamental credentials to stay above the herd in the current downward biased market. Domino's Pizza ((DMP)) is one such story. How do I know? The shares have been trading above or near consensus target constantly since the beginning of the year and that target, by the way, improved during the period. This is where Domino's Pizza stands out from the thousand or so other stocks in the market. When the global going gets tough, Domino's proves its true grit.
Every high flyer experiences its moments of weakness, however, and we are at present going through such a period for Domino's. Is there a particular reason as to why selling pressure has increased in the week past? Icarus hasn't seen one, except maybe that Deutsche Bank agreed the share price looked a bit topsy and thus decided to downgrade to Hold last week.
Admittedly, trading on a forward Price-Earnings ratio of above 19, the price investors were willing to pay for a piece of Domino's looked high, which is why the prospective dividend yield is a not so attractive looking 3.7% only. Note that strong growth prospects should improve that figure to 4.3% next year (at the present price).
How low can Domino's go? The share price fell as low as $5.20 in the ultra-volatile trading sessions at the start of August, but they quickly bounced back to target after that. My suspicion is that as long as "Europe" and "global recession" continue weighing on investors' mind, any weakness in the share price of Domino's will be temporarily at worst.
There are now seven stocks left trading near but still below consensus target. There are 13 stocks trading above target, including many targets for corporate action. We also welcome Little World Beverages ((LWB)) which only recently listed and already trades 10c above the maiden price target set by Citi.
Investors should consider the information and data are provided for research purposes only.
Stocks <3% Below Consensus
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Stocks Above Consensus
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Top 50 Stocks Furthest from Consensus
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