Domino's Pizza Upgraded to Buy

NEW YORK ( TheStreet) -- Domino's Pizza ( DPZ) was upgraded to buy from hold by TheStreet Ratings on Thursday.

The stock has been on a tear since its fourth-quarter earnings announcement on Feb. 28. The company reported fourth-quarter net income of $30.9 million, or 52 cents a share, up from year-ago earnings of $24.2 million, or 40 cent. The stock hit a 52-week high of $36.17 on the same day it reported earnings.

Shares hit another 52-week high on Wednesday of $39.92. The stock's 52-week low of $16.88 was set on March 15.

Jim Cramer said Domino's is a buy at about $35.

Domino's Pizza has an estimated price-to-earnings ratio for next year of 17.43 times; the average or restaurant and bar companies is 19.26. For comparison, Papa John's International ( PZZA) has a lower forward P/E of 13.6; Buffalo Wild Wings' ( BWLD) forward P/E is 22.17.

Twelve of the 16 analysts who cover Domino's Pizza rated it a hold; four analysts gave the stock a buy rating.

TheStreet Ratings gives Domino's Pizza a B grade and a $50.58 price target. The stock closed Wednesday at $39.48 and has risen 16.29% year to date.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

-- Written by Alexandra Zendrian

>To contact the writer of this article, click here: Alexandra Zendrian

>To submit a news tip, send an email to:

>To follow the writer on Twitter, go to Alexandra Zendrian.