Boston Beer and Domino's Pizza to Open Near 52-Week Highs

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Ending a strong week in the stock market, consumer goods makers Boston Beer
SAM
and Domino's Pizza
DPZ
reached new multiyear highs of $105.08 and $34.05 per share, respectively, in Friday's trading session.
Boston Beer
is heavily shorted by the bears despite the stock's surge from a 52-week low in early October, boosted by better-than-expected results in November that included better-than-forecast guidance. The craft brewer is headquartered in Boston, of course, and produces Twisted Tea and HardCore cider in addition to Sam Adams beers. It was founded in 1984 and now has a market cap of $1.3 billion. Earnings per share are anticipated to grow 9.1% over the next five years. The P/E ratio is higher than the industry average but so is the operating margin, and the return on equity is a healthy 35.6%. Three out of seven analysts recommend buying the stock. The share price is up about 30% in the past 90 days and about 8% higher than a week ago. Over the past six months, the stock has outperformed both Anheuser-Busch InBev
BUD
and Molson Coors
TAP
.
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Domino's Pizza
was a Jim Cramer pick last week, and KeyBanc Capital initiated coverage with a Hold rating. The company attributed strong results in the most recent quarter in part to international sales and digital sales. The pizza-delivery company has more than 9,300 stores. It is headquartered in Ann Arbor, Mich., has a market cap is $1.9 billion and was founded in 1960. Here too, the P/E ratio is higher than the industry average but so is the operating margin. The long-term EPS growth forecast is 9.8%. Five out of 12 analysts recommend buying the stock; none of them consider it a sell. The share price jumped 10% in the past week and is now about 126% higher than a year ago. The stock has outperformed competitor Papa John's
PZZA
and the broader markets over the past six months.
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Posted In: Long IdeasShort IdeasPre-Market OutlookTrading Ideas52-Week HighsAnheuser-Busch InBevboston beerDomino’s PizzaJim Cramermolson coorsPapa John’sSam Adams
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