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DoorDash (DASH), Lowe Team Up for Nationwide Home Delivery

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DoorDash (DASH - Free Report) recently inked a partnership with Lowe’s Companies (LOW - Free Report) that will help in expanding its footprint in the local commerce platform.

The collaboration is expected to help DASH foray into the home improvement category, allowing consumers nationwide access to more than 1,700 Lowe’s stores for on-demand delivery.

Through this partnership, customers can now conveniently purchase Lowe’s products directly through the DoorDash app, enhancing the ability to shop for everyday items with same-day delivery. The partnership further enriches DoorDash’s extensive selection offering, with more than 99% of its monthly consumers in the United States having access to various retailers on the platform.

Moreover, participating Lowe’s stores will be accessible on DashPass, DoorDash’s membership program, providing members with benefits like a $0 delivery fee and reduced service fee on eligible orders.

DoorDash, Inc. Price and Consensus


DoorDash, Inc. Price and Consensus

DoorDash, Inc. price-consensus-chart | DoorDash, Inc. Quote


DASH’s Robust Portfolio Aids Prospect

DoorDash’s shares have gained 39.8% in the year-to-date period compared with the Zacks Computer & Technology sector's rise of 11.4%. The uptick can be attributed to DASH’s commitment to expand its offerings and provide convenient access to a wide range of products and services for its consumers.

DASH’s expanding clientele has been noteworthy. In addition to LOW, DoorDash recently announced a collaboration with Alphabet (GOOGL - Free Report) .

In March, DASH collaborated with Alphabet’s drone delivery technology arm, Wing, to launch a drone delivery partnership in the United States, starting in Cristianburg, VA. The deal offers select local customers the option to have Wendy’s meals delivered via drone through the DoorDash marketplace.

This is expected to bolster DoorDash’s total orders, which increased 23% year over year and amounted to $574 million in fourth-quarter 2023. Marketplace Gross Order Value (GOV) experienced a 22% increase year over year, reaching $17.6 billion.

Expanding partner base has been a key catalyst. In January, DASH welcomed new retail partners like Camping World, Golf Galaxy, JD Sports, Finish Line and The Vitamin Shoppe, thereby diversifying its marketplace to include more than 100,000 non-restaurant stores. The expansion offers consumers on-demand delivery for a diverse array of products catering to active and wellness lifestyles.

DoorDash’s recent expansion of SNAP/EBT payment options to over a dozen new grocers, aiming to increase food access for millions nationwide while offering two free months of DashPass to new customers who uploaded their SNAP/EBT cards, further enhances the company’s mission of providing inclusive and convenient services to all.

DoorDash’s strong portfolio and partner base are contributing to its growth prospects continuously, thereby driving top-line growth.

For first-quarter 2024, DoorDash anticipates Marketplace GOV in the range of $18.5-$18.9 billion.

The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $2.45 billion, indicating 20.52% year-over-year growth.

The Zacks Consensus Estimate for earnings is expected to decline 7 cents per share, moving down by a couple of pennies in the past 30 days.

Zacks Rank & Stocks to Consider

DoorDash currently has a Zacks Rank #3 (Hold).

A better-ranked stock in the broader technology sector is Bill Holdings (BILL - Free Report) , which sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Bill Holding’s shares have declined 20.9% in the year-to-date period. BILL’s long-term earnings growth rate is currently projected at 23.64%.

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