Summary
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DoorDash (DASH) has shown strong technical performance, with a 43.36% gain since a Trend Seeker buy signal on 8/5 and 85.73% gain in the last year.
The company operates a robust commerce platform, connecting merchants, consumers, and independent contractors, and offers various services including delivery fulfillment and digital ordering solutions.
Despite mixed analyst ratings, DoorDash is expected to see significant revenue and earnings growth, with a market cap of $73 billion and strong investor interest.
Barchart highlights the stock's exceptional price appreciation but advises caution due to its volatility and speculative nature, recommending a disciplined investment approach.
The Chart of the Day belongs to local ordering and delivery company DoorDash (DASH) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 8/5 the stock gained 43.36%.
DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. The company operates DoorDash Marketplace and Wolt Marketplace, which provide various services, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers membership products, including DashPass and Wolt+; DoorDash Drive and Wolt Drive, which are white-label delivery fulfillment services that enable merchants that have generated consumer demand through their channels to fulfill demand using its platform; DoorDash Storefront that enables merchants to offer consumers on-demand access to e-commerce; and Bbot, which offers merchants digital ordering and payment solutions for in-store and online channels. In addition, the company enables merchants to advertise and promote on its platform to acquire consumers. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015. DoorDash, Inc. was founded in 2013 and is headquartered in San Francisco, California.
DASH Price vs Daily Moving Averages:
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 92.78+ Weighted Alpha
- 85.73% gain in the last year
- Trend Seeker buy signal
- 1.67 - 60 month Beta
- Above its 20, 50 and 100 day moving averages
- 17 new highs and up 15.90% in the last month
- Relative Strength Index 80.11%
- Technical support level at $174.33
- Recently traded at $173.81 with 50 day moving average of $148.09
Fundamental Factors:
- Market Cap $73 billion
- Revenue expected to grow 23.73% this year and another 18.45% next year
- Earnings are estimated to increase 85.87% this year and an additional 38.41% next year
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analyst gave 22 strong buy, 7 buy and 15 hold opinions on the stock
- Analysts' price targets are between $135 and $200
- Value Line rates the stock it's lowest rating of 5 and has a price target of $140 or 20% below today's close but comments:"We are now tentatively forecasting that the company will break even for the first time in 2025, with profitability in the years to follow."
- CFRAs MarketScope rates the stock a 4 star buy with a price target of $179 and comments:"Our 12-month target price of $179 is based on a P/E multiple of 42x our 2025 EPS view of $4.26, above peers to reflect DASH’s market dominance and success with subscriptions."
- MorningStar gives the stock its below average rating of 2 with a Fair Value of $135 or 30% over valued but comments:" DoorDash has been steadily expanding its roster beyond food delivery, focusing on areas such as grocery delivery and advertising. We see an opportunity for the firm to increase its GOV by expanding into more geographies and further strengthening its network."
- 27,190 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
