Papa Johns Pizza | PZZA | Long at $37.00

Warren Buffett goes for Dominos ( DPZ ), but I'm here for Pappa Johns NASDAQ:PZZA.

Pros:

• Earnings are forecast to grow 10.92% per year
  
• Revenue grew from $1.8 billion in 2020 to $2.1 billion through Q3 of 2024 - expected to continue to rise through 2027
  
• Free cash flow expected to improve
  
• 5.1% dividend
  
• A lot of options awarded to insiders in 2024 and limited selling
  
• Technological advancements in AI/ordering/processing may reduce long-term costs
  
• Technical analysis shows stock may be coming out of a downtrend in low $30's (but exercise caution - very early)
  

Cons:

• Debt is not well covered by operating cash flow
  
• Dividend is not well covered by free cash flows
  
• May have some near-term struggles due to weakening economy
  
• Technical analysis shows possible drop to the $20's if bad earnings/outlook are revealed (another personal buying opportunity)
  

While there may be some near-term economic headwinds, I like the stock and the future of companies like DPZ and PZZA as AI is integrated to reduce costs. Thus, at $37.00, PZZA is in a personal buy zone.

Targets

1. $45.00
   
2. $50.00
   
3. $60.00
   
4. $100.00+ (very long-term outlook to close the existing price gaps on the daily chart)