As analysts get bullish on Domino's, these two fast-food stocks could have even more upside, trader says
With Domino's a top idea at Oppenheimer and McDonald's setting record highs, two traders survey the fast-food space's mixed performance this year.
cases reappeared during its winter months."I'm a little concerned," he said. "Having said that, there are two stocks that look pretty good, and if they rally much further, they're going to get some momentum behind them."His first pick was Olive Garden parent
Darden Restaurants, down nearly 16.5% year to date."The stock has broken above its 200-day moving average," Maley said, pointing to the chart. "It's also made a higher high above its June highs. That's bullish."Arrows pointing outwards
"The problem is it's only a slight higher high and it's getting a little overbought," he said. "Not as much as Chipotle, but getting a little overbought. So the one I like a little bit better is Yum."Shares of Yum Brands, which owns KFC, Taco Bell and Pizza Hut, could be on the cusp of another sustained move higher, Maley said.
Arrows pointing outwards"It broke its 200-day moving average, it rallied up, came back down and held that 200-day moving average," he said. "Now it's starting to rally again. If it can break above its June highs — so, follow that upside break of the 200-day moving average with another higher high — that's going to give the stock a lot of momentum."
"Now there's a lot of ifs in there," Maley added. "We do need some more upside momentum in these names. But if ... [this group] does get some upside, those are the two stocks you want to look at rather than a Chipotle, which has already had a huge move."
John Petrides, a portfolio manager in the wealth management division of Tocqueville Asset Management, is staying away from fast-food stocks altogether."I'm a believer of avoiding this entire space in general," he said in the same "Trading Nation" interview. "I don't have to go to Domino's to buy pizza. I can go to my local place. Or I can go to my local Tito's Burrito's ... where I live, or I can make my own lunch. So, I don't need to go to these places to order food."
Moreover, while the coronavirus pandemic has put more pressure on restaurants than almost any other industry, there's been a significant silver lining for the group, Petrides said.In a way, restaurants have become "more competitive" because they were forced to embrace things like curbside pickup and mobile delivery apps in a way they hadn't before, the wealth manager said.
"So, … your local restaurant now becomes, in essence, a fast-food type of caliber where you get that service to your door," he said.But Petrides is concerned about the stocks' valuations."By and large, the group is trading at about a 50, 60, even 70% premium to the
S&P 500, and I'm just not willing to pay up for that," he said. "I think the benefit of Covid to the quick-serve space is very much baked into the price, and for those reasons, I would avoid the space entirely." Read more: CNBC »
Following confirmation to Supreme Court, Barrett takes 1st oath at White House
Amy Coney Barrett will replace the late liberal icon, Justice Ruth Bader Ginsburg on the Supreme Court.
Motley fool article on OpenLearning=ASX$OLL🚀 OpenLearning=ASX$OLL Can help save our economy with their Quality and Accredited Micro Credentials. By retraining our out of work workforce faster and way cheaper, Governments are starting to put support behind this invention of the future in learning. OpenLearning=ASX$OLL Main website to start your own Educated research❤
Look at the current chart's for OpenLearning=ASX$OLL 🤔OpenLearning has brokenout into a new higher trend with strong growth and support that has not been in the past. This link below is predicted stock pricing and forecasts for OpenLearning=ASX$OLL🚀 The future forecast is looking good👍
Burger King cuts artificial ingredients from Whopper - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. You mean they've starting using real beef in their Whopper now? Just when you thought they couldn’t make it tast any worse...voila! BurgerKing still using beef from cows that are given rBST growth hormones and antibiotics, right? No thanks. Go to BURGERFI
28 Pieces Of Clothing You'll Probably Actually Look Forward To Wearing This WeekEven if you don't have many places to go, you can still have fun getting dressed. They all look FAT! Sadly, obesity is rampant in America, foreigners call us 'Fat America' and the morbidly obese don't seem to realize (or care) that they will NOT live out their lifespan unless they lose the bad eating habits! And one in 4 kids are overweight -- TRAGIC!
US stocks drop as traders mull the Fed's uncertain economic outlook | Markets InsiderAndrew Kelly/Reuters US stocks closed lower on Thursday as investors continued to digest the Fed's uncertain economic outlook and weekly joble...
UBS is 'very bullish on gold,' says prices could stay high longerUBS has raised its gold price forecast for next year from $1,850 to $2,100 per ounce, said Yeoh Choo Guan, the bank's head of ASEAN global markets. They are giving out gold? When everyone buys price goes up then they dump it big time. Don't be fooled by this brokerage crumbs picking scavengers! FireJimCramer
Lincoln Project Co-Founder Names Trump's 'Greatest Lie In American History'Steve Schmidt says “there’s nothing that frankly comes even close.' Truth the man lies so much tracking them is a full time job... We are at the point of no ambiguity, no grey area. Family and friends who continue to support Trump, citing that they disagree with some of his rhetoric, can no longer be afforded the benefit of the doubt. The line is etched into stone; supporting Trump is endorsing turpitude. You don’t know how to be a leader. President Trump does.its best u stay in your lane Steve Schmidt. It’s crazy all I here is how wrong President Trump was dealing with the virus. Tell me what u would do different. Sick of it.
Fed makes its last stand in struggle to keep potent in age of low interest ratesFederal Reserve Chairman Jerome Powell laid out the Fed’s battle plan to stay potent in an age of low interest rates by promising to allow inflation to... If the Fed wants inflation, get the money to those who spend. Otherwise, the Fed will get more asset bubbles. There’s already inflation, food, furniture, mattresses, appliances, raw materials have increased in price as well as transportation of goods. All my furniture & mattress vendors prices have gone up. And now container transportation prices are going higher as well. Inflation?