Earlier this week, the Ann Arbor, MI-based pizza retail chain reported better-than-expected 2015 fourth quarter results.
Domino's posted domestic same-store sales of 10.7%, which was driven by its digital ordering platform and the company's marketing efforts, the firm said. About 50% of Domino's sales come from digital orders.
"This is among the top tier in the segment, in-line with Papa John's (50%) and above Pizza Hut (about 40%)," the firm said. "Domino's market share of digital ordering in the domestic pizza segment is an impressive 31.3%."
Domino's high valuation is fair because the company is one of the strongest global growth companies in its sector, Jefferies added.
Domino's stock is up by 0.69% to $132.82 in early-morning trading on Friday.
Separately, TheStreet Rating Team has a "Buy" rating with a score of B- on the stock.
This is driven by a number of strengths, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.
The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, good cash flow from operations, increase in net income and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: DPZ