The Domino's Pizza Enterprises Ltd (ASX: DMP) share price is down 9.01% in March compared to a 24.82% loss for the S&P/ASX 200 Index (ASX: XJO) on Friday's close. But is the Aussie pizza group in the buy zone or could it fall further in 2020?
Why the Domino's share price could be in the buy zone
Compared to the benchmark, the Domino's share price has outperformed by 15.81% this month on a relative basis. Those are good numbers that shareholders would no doubt be pleased with.
The coronavirus pandemic has been the trigger that has sent ASX 200 shares into a bear market. But the double whammy of a health crisis and economic crisis has created some interesting pockets of value. The hospitality group's shares have been spared the worst of the sell-off because food delivery looks likely to continue.
With Aussies unable to dine in at their favourite restaurants, many may be turning to Domino's for food delivery. Any further restrictions may hurt the group, but for the moment things are actually looking OK on the earnings front.
One factor that's worth considering is the correlation between the Domino's share price and the S&P/ASX 200 Index. By my calculations, Domino's shares have a 0.20 correlation with the benchmark over the last 12 months. Those are pretty good numbers, which could make it a good option to hedge against the coronavirus crash.
What else is good value in the ASX 200 right now?
It's getting hard to pick good value ASX 200 shares right now. While the Domino's share price has remained relatively buoyant, others haven't been so lucky. The key to making the most of the market correction is to buy high-quality companies with a long-term investment horizon.
For me, that could mean investing in Telstra Corporation Ltd (ASX: TLS) shares, given the telco's potential for stable earnings through an otherwise volatile period. Whichever way you go, it's important to make rational decisions and not panic about the day-to-day market movements.
