Summary
DoorDash (DASH) shows strong technical indicators with 100% buy signals, a 77.80% gain in the last year, and a Trend Seeker buy signal.
The stock is trading above its 20, 50, and 100-day moving averages, with recent highs and a strong Relative Strength Index of 82.95%.
Analysts are bullish with 22 strong buy ratings and price targets ranging from $138 to $250, despite a high P/E ratio of 761.63.
DoorDash's revenue and earnings are expected to grow significantly, with positive sentiment from major firms like CFRA and MorningStar.
The Chart of the Day belongs to the ecommerce 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 1/23 the stock gained 16.52%.
DASH Price vs Daily Moving Averages:
DASH (Barchart)
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 programs, including DashPass and Wolt+; and DoorDash Drive On-Demand and Wolt Drive, which are white-label delivery fulfillment services, as well as provides services that help merchants establish online ordering, build branded mobile apps, enable tableside order and pay, and enhance customer support. 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.
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
- 101.85+ Weighted Alpha
- 77.80% gain in the last year
- 1.72 - 60 month Beta
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 18 new highs and up 26.01% in the last month
- Relative Strength Index 82.95%
- Technical support level at $207.28
- Recently traded at $213.38 with 50 day moving average of $179.68
Fundamental Factors:
- Market Cap $86.64 billion
- P/E 761.63
- Revenue expected to grow 21.28% this year and another 17.37% next year
- Earnings estimated to increase 76.62% this year and an additional 31.79% 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 analysts issued 22 strong buy, 7 buy and15 hold opinions on the stock
- Their price targets between $138 and $250
- Value Line gives the stock an average rating with a price target of $174 for a 20% loss and comments:" DoorDash posted its first-ever quarter of positive earnings in the third quarter of 2024. This in itself was not tremendously surprising; we had estimated breakeven earnings for the quarter, so earnings even the slightest bit above our mark would have put the company in the black. "
- CFRAs MarketScope rates the stock a buy with a price target of $245 and comments:" We lift our 12-month target to $245 from $206, shifting to a P/E of 40x our 2026 EPS view, above peers to reflect financial strength."
- MorningStar thinks the stock is fairly valued and comments:" Dash reported earnings that exceeded management guidance and expectations while continuing to strengthen key network effect metrics that support our narrow moat, such as total users, engagement (orders per monthly active user), and marketplace gross order value. We appreciate the continued progress in network effect strength and anticipate further runway from international and non-restaurant markets."
- Of the 115 investors following the stock on Motley Fool 58 think the stock will beat the market and 57 think it won't
- 28,510 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.
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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.
