I won’t do a rundown of how things went on Friday because my last post was a recap of the entire week. We still have one open position, with a short sale of Nu Skin Enterprises Inc. (NUS). We opened our position of NUS at 21.34, and we are waiting for it to pullback today. We were at just even on Friday, so we are going to continue to hold onto this. Let’s get into today’s plays on a quiet day in the markets. The markets are looking up for today on the earnings season news. The real movement is going to be based on investors feelings about the market before they are announced, so let’s look for some of those slippers.
Buy Pick of the Day: Domino’s Pizza Inc. (DPZ)
I rarely get behind the restaurant business in my investing, but I like the option Domino’s is presenting today before its Q3 earnings season. The company, last quarter, reported quarterly earnings that were down 22%, but they were furt by a stronger dollar, even though same-store sales rose 4.1%. The company beat estimates on earnings and revenues, with 0.21 EPS. The company is expected to earn 0.15 EPS, beating one year ago earnings with 0.13. I, personally, think this will be easily beat. Domino’s is the pizza place, out of the major chains, that should most benefit from a weaker economy, comparatively, due to its value prices.
The company releases their earnings tomorrow morning, and the company has a lot of room to its upside on the technicals and has not seen a buy up in pre-market trading above 2%. It is currently up just 1.8%. The stock has jumped a little under 10% in the past couple sessions, but it still has momentum. The stock has just crossed to the upside on slow stochastics, and it should not experience a lot of resistance until the 9.40 – 9.50 level. At the current 9.05 buy price, there is still a lot of buying opportunities.
The market has rallied significantly, and we do have to be scared of a pullback. I don’t see that happening, however, until we do see some weak earnings, which will not happen today. I don’t expect a huge rally with a semi-flat market as investors wait for signals, but as we get closer to the close, those companies reporting are going to see a lot of buying up as…
