Investment Psychology for Dominos Pizza Inc -myassignmenthelp.com

Question: Discuss about theInvestment Psychology for Dominos Pizza Inc. Answer: Introduction: The analysis on such as Dominos Pizza Inc., Google Inc., Delta Air Lines Inc is mainly conducted in the assessment to identify the future prospective and detect the investment viability in this company. The assessment evaluates the financial performance of selected companies, which could eventually help and detecting whether there is a viable investment scope for investors. The pattern recognition, which is conducted by evaluating historical price movements is also helpful in detecting the overall trend of the organizations. Dominos Pizza Inc., Google Inc., Delta Air Lines Inc is selected from the overall portfolio, where adequate research could be conducted to identify the investment opportunities and future performance of the companies. The Domino's Pizza Inc is iteratively under Food processing industry, why Google Inc falls under the information technology industry. Lastly, the Delta airlines company mainly falls under the Airline industry. Delta Air Lines Inc 2015 2016 2017 Quick Ratio 0.32 0.35 0.27 Operating Margin 27.82% 25.36% 22.86% Debt/Equity 0.62 0.5 0.47 Gross Margin 58.00% 59.79% 57.91% Financial performance of delta Airlines can be identified from the above table, which would allow investors to conduct adequate investment decision. The quick ratio, gross margin ratio, and operating margin ratio of the company has declined. However, the debt ratio of the company has relatively decline, which indicated and improvement anus financial capability[1]. Dominos Pizza Inc 2015 2016 2017 Operating Margin 18.290% 18.360% 18.700% Quick Ratio 0.700 0.480 0.530 Gross Margin 30.820% 31.050% 31.060% Interest coverage 4.080 4.130 4.270 The profit margin, interest coverage ratio, gross margin of the company has a relatively improved over a period of 3 years. This mainly indicates the high capability of the organization to generate returns from investment. However, the quick ratio the company declined, which stated in the hi accumulation of current liabilities in comparison to current assets. Google 2015 2016 2017 Quick Ratio 4.5 6 4.98 Operating Margin 25.82% 26.27% 23.59% Debt/Equity 0.02 0.03 0.02 Gross Margin 62.44% 61.08% 58.88% From the valuation, it could be seen that the financial position of Google has improved in 2017, as the quick ratio and debt to equity ratio has a relatively increased over the financial years. However, the client in operating margin and gross margin is seen, which was conducted due to high expenses incurred by the organization doing the financial years[2]. The selection decision was mainly made on both logical and instinctual basis, as the organization selected for the portfolio are the market leaders, which would eventually help in generating high returns. Furthermore, the logical reason for selecting the stock is the pricing performance of the organizations which has been conducted over the past years. In addition, the companies such as Domino's and Google would eventually increase their revenues in long run, which would support the capital growth needed from the portfolio[3]. CompanyName Price Market Cap P / E Ratio SkyWest, Inc. $ 55 2,856,034 7 Delta Air Lines, Inc. $ 53 37,501,735 11 The competitive level of delta airline is evaluated in the above table, where P/E ratio and market cap of the organization is a relatively higher in comparison to its competitor. However, the share price of the organization is relatively low in comparison to its competitors, which indicates a possibility of price increment in future. CompanyName Price Market Cap P / E Ratio Sysco Corporation $ 60 31,169,003 27 Domino's Pizza Inc $ 231 9,968,982 40 The above table reverently represents the competitive edge of Domino's against Sysco Corporation, which would eventually help in detecting financial viability of the company. The overall t ratio and share price of Domino's is relatively higher than its competitor, where is the market cap of Sysco corporation is higher. The market cap of Dominos is relatively lower than Sysco Corporation, which is relatively due to the high prices of the organization. CompanyName Price Market Cap P / E Ratio Facebook, Inc. $ 157.20 376,638,938 29.17 GOOGL Alphabet Inc. $ 1,009.95 301,463,005 56.23 From the overall evaluation, Google is considered to be the most viable investment option, which could help in generating high level of returns from investment. The current price and see ratio of Google is relatively higher in comparison to Facebook, while the market cap of Facebook is higher due to the low prices of the organization. CompanyName Price 52 Weeks High /Low Domino's Pizza Inc 231.46 $236.93/$166.74 Delta Air Lines, Inc. 53.05 $60.79/$43.81 GOOGL Alphabet Inc. 1009.95 $1,198/$834.60 From the overall evaluation, the 52-week high and low share price of the company is relevantly depicted in the above table. In addition, the overall prices of the company are at adequate level, which indicates the possibility of rising share prices for all the three companies. The share price valuation of Domino's Pizza is relatively close to the 52 weeks high value, which indicate that the current trend of the organization is relatively up, which the pics that the share price of the organization will eventually increase in future. Moreover, The Delta price is relatively close to 52 weeks high, which could eventually help in improving the financial position of investors. Likewise, the share price of Google is also at 52 weeks high, which depicts the pricing trend of the organization, where new highs would be achieved in future[4]. Conclusion: From the valuation it could be identified that Domino's pizza and Google is identified to be an adequate investment opportunity, which could increase returns of the investors. The financial ratios and the current trend of the organization is a relatively positive, which could eventually allow investors to generate higher returns from investment. hence, the stocks could be associated with the portfolio for increasing the returns of the investors. However, neglecting the shares of delta airline is mainly a viable option, where the financial performance of the company is not adequate. Reference and Bibliography: Baumann, Michael Heinrich, and Lars Grne. "Simultaneously long short trading in discrete and continuous time."Systems Control Letters99 (2017): 85-89. Chandra, Prasanna.Investment analysis and portfolio management. McGraw-Hill Education, 2017. Kang, Yan-Qing, et al. "Environmental assessment and investment strategy for China's manufacturing industry: A non-radial DEA based analysis."Journal of Cleaner Production175 (2018): 501-511. Mikesell, Raymond F., and John W. Whitney.The world mining industry: Investment strategy and public policy. Routledge, 2017. Nasdaq.com 2018, https://www.nasdaq.com/symbol/dal/competitors?sortname=lastsalesorttype=1. Accessed 9 Apr 2018. Nasdaq.com 2018, https://www.nasdaq.com/symbol/dpz/competitors?sortname=lastsalesorttype=1. Accessed 9 Apr 2018. Nasdaq.com 2018, https://www.nasdaq.com/symbol/goog/competitors?sortname=lastsalesorttype=1. Accessed 9 Apr 2018. Zhang, Xinhua, et al. "Analysis of carbon-abatement investment for thermal power market in carbon-dispatching mode and policy recommendations."Energy149 (2018): 954-966. ucation, 2017.