Better Buy: McDonald's vs. Domino's Pizza
Every investor wants to buy winning stocks. Unfortunately, faulty reasoning often misguides our search.
Take for instance restaurant giants McDonald's (NYSE: MCD) and Domino's Pizza (NYSE: DPZ). McDonald's stock is about 7% lower than it was this time last year. By contrast, Domino's stock has gone up almost 60% during the same timespan. Given the choice, many investors would decide to buy McDonald's stock at a "discount" rather than "chase" Domino's stock at all-time highs.
This is looking for a value in the wrong places.
Source Fool.com