Papa John’s Intl. Inc. stock trades under the ticker PZZA & has shown recent bullish movement that traders & investors should take a deeper look at.
PZZA stock closed at $125.76/share on 11/1/2021.
Papa John’s Intl. Inc. PZZA Stock’s Technicals Broken Down
PZZA Stock Price: $125.76
10 Day Moving Average: $121.67
50 Day Moving Average: $126.09
200 Day Moving Average: $106.77
RSI: 55.2
MACD: -1.013
Yesterday, PZZA completed a bullish MACD crossover, while also approaching its 50 Day Moving Average.
The prior day, PZZA broke out above its 10 Day MA, which is <5% behind their 50 Day MA.
With a neutral RSI, there is additional momentum to push the price above the 50 Day MA, which will get additional fuel from the 10 Day MA crossing it a matter of days later.
The next test for PZZA will be the $127.66-128/share range.
Papa John’s Intl. Inc. PZZA Stock As A Long-Term Investment
Investors may be fond of PZZA stock as a long-term hold, due to their popularity & increased Quarterly Revenue Growth of 11.8% & Quarterly Earnings Growth of 56%.
Their Institutional Shareholders account for ~98% of shareholders.
However, their P/E (ttm) & P/B are both not positive, and their 1.13% dividend yield is not supported by a strong payout ratio (-13%).
Another area that some investors may be wary of is their balance sheet, where they have Total Cash (mrq) of $96.2M & Total Debt (mrq) of $614.2M.
Papa John’s Intl. Inc. PZZA Stock As A Short-Term Trade Using Options
Short-term focused traders may be interested in using options to profit from PZZA stock’s recent momentum.
I am looking at the contracts with the 11/19 expiration date.
The $120 & $125 calls look safe, with the $130 also being in the running to be in-the-money by the expiration.
For puts, the $130, $135 & $140 strike prices also look appealing as a hedge.
The open interest on puts vs. calls shows that traders expect there to be more bullishness to come from PZZA stock in the near term, although that sentiment may shift as contracts with expiration dates between now & then expire.
Tying It All Togher
Overall, PZZA stock has a lot of opportunities for traders & investors.
Investors may like their recent growth & undisputed popularity of the major pizza chains.
Traders will like their current momentum & variety of expiration dates for options contracts, as they can get better prices on contracts that expire sooner.
All-in-all, Papa John’s Intl. Inc. is worth taking a closer look at for all market participants.
*** I DO NOT OWN SHARES OF PZZA STOCK ***