Domino's Pizza (NYSE:DPZ) rose 1.75% in early trading on Wednesday and was one of the top gainers in the S&P 500 Index. The broad market fell after the June inflation report came in stronger than anticipated.
The restaurant stock has attracted attention recently from firms like Deutsche Bank as a potential defensive play within the restaurant sector and broader consumer discretionary group. Bank of America also highlighted DPZ as an "Alpha Surprise" after factoring in a dividend discount model and earnings surprise model. Meanwhile, Oppenheimer's bull case on DPZ is based partially on anticipation that new management could utilize third-party partnerships to improve fundamentals. Other firms have noted Domino's (DPZ) can benefit when consumers trade down with their restaurant decisions, a trend that may be seen in Q3 and Q4.