16Jul10:43 amEST
Dominos: My Pizza Never Hurt Nobody
Papa John's International, Inc. (PZZA) is, ironically, in the same category as Starbucks from a technical perspective, combined with a major change in leadership amid controversial headlines.
Speaking pure of the price action, PZZA and SBUX look like candidates to buy some puts looking out to the autumn months perhaps to hedge against consumer long plays comeback stories like CMG DNKN RUTH SHAK WING, and quite a few others.
Either way, they both have bearish daily charts and wobbly weeklies after prior, steep multi-year bull runs.
Interestingly, in the pizza space Dominos (DPZ) has yet to flinch despite its historic run off the 2009 bear market lows (easily one of the best performers in the entire market since then).
As for any type of hidden gems regarding pizza plays, the other "Papa," Papa Murphy's (FRSH), with its unique take-and-bake pizza business model, has yet to emerge technically. The stock trades with extremely thin volume for now, indicative of little interest from Wall Street under $6, just yet.
Hence, DPZ is still the clear winner in the pizza corner of dining plays. However, my preference remains for the up-and-coming sleeper plays in the restaurant space which we are tracking closely for Members.
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