Domino's Q2 Results Disappoint, But Institutional Investors See Value in Discounted Shares

Domino's Q2 results were weak, but investors should focus on increased profits, improved business leverage, and substantial capital return. Despite a market reaction, institutional investors bought nearly $2 in shares for every one sold, providing solid support for the market. Analysts forecast steady mid-single-digit revenue growth and accelerating earnings growth through the middle of the next decade. The stock is valued at a significant discount of only 10 times the 2035 forecast, with a Moderate Buy rating.