Domino's Pizza Inc. (DPZ) is sizzling.
The pizzeria chain's stock is hovering near a 52-week high of $219.41 a share, even after dropping last week due to speculation that it might not be generating as many sales as analysts previously thought. Over the past five years, Domino's stock has exploded 650%.
On Friday, Longbow Research downgraded Domino's to a "neutral" rating from a "buy," stating that its channel checks are showing that second-quarter sales are trailing lower than Wall Street's current expectations. For the second quarter, analysts surveyed at Factset are looking for $609 million in revenue.
Here's why investors are still biting.