Domino's Pizza (DPZ) is a Top-Ranked Growth Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores provide a unique rating system for stocks based on value, growth, and momentum, aiding in identifying securities likely to outperform the market [2][3] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A indicating the highest potential for outperformance [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Style Score identifies attractive and discounted stocks using various financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook, focusing on projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends, utilizing metrics like one-week price change and monthly earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with the best value, growth potential, and momentum, serving as a strong indicator alongside the Zacks Rank [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.81% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] Stock Example: Domino's Pizza (DPZ) - Domino's Pizza is rated 3 (Hold) on the Zacks Rank, with a VGM Score of A and a Growth Style Score of B, indicating potential for growth with a forecasted year-over-year earnings growth of 6.1% for the current fiscal year [11] - Recent upward revision of earnings estimates for fiscal 2025 has increased the Zacks Consensus Estimate to $17.71 per share, with an average earnings surprise of +3.6% [12]