Domino's Pizza (DPZ) delivered higher-than-expected Q2 revenue growth. Its free cash flow (FCF), although slightly lower than last year, was much higher than last quarter, with higher margins. Value investors think DPZ looks cheap here, with a $413 price target (+25.6%), $based on its strong FCF and FCF margins.
DPZ closed at $328.97, up 2.1%, and has begun recovering from a recent trough price of $283.03 on June 23. However, it's still well below a March 9 peak of $415.78.