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Why High-Flying Maplebear Stock Is a Must-Buy for Your Portfolio

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Maplebear Inc. (CART - Free Report) is a grocery technology company operating principally in North America with grocers and retailers to transform how people shop. CART’s Instacart Platform offers retailers a suite of enterprise-grade technology products and services to power their e-commerce experiences, fulfill orders, digitize brick-and-mortar stores, provide advertising services, and glean insights. CART also operates virtual convenience stores; and provides software-as-a-service solutions to retailers.

CART Stock Rides Strong Technology Services  Industry Wave

Maplebear belongs to the Technology Services industry, which comes under the Business Services sector. In the past year, the Zacks Defined Business Services sector has provided a double-digit return of 17.8% and the Technology Services industry has rallied an impressive 39.7%. 

Year to date, the Business Services sector and the Technology services industry have advanced 11.4% and 17.8% respectively. Since the Technology Services industry ranks within the top 27% of Zacks Ranked Industries, we expect it to outperform the market over the next three to six months.

Maplebear currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Maplebear Offers Strong Product Diversification

Maplebear serves households in the United States and Canada across 14,000 cities with more than 1 billion products and grocery items. CART’s unique selling point is its fast delivery system. Historically, it has delivered 25% of its priority orders in less than 30 minutes. Recently, Maplebear entered into a partnership with Uber Technologies Inc. (UBER - Free Report) for delivering products through the Instacart app.

In second-quarter 2024, CART’s gross transaction value (the average order value multiplied by the total transactions made) came in at $8.2 billion, marking an increase of 10% year over year. CART entered into a partnership with HVN Travel Group and PetSmart for greater product variety in offering.

Solid Earnings Estimate Revisions for CART Stock

CART has an expected revenue and earnings growth rate of 11% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current-quarter, next-quarter, current-year and next-year earnings has improved over the last 30 days.

Zacks Investment Research
Image Source: Zacks Investment Research

Huge Price Upside Potential for CART Shares

The stock price of Maplebear has jumped 44.1% year to date. Despite this rally, the short-term average price target of brokerage firms for the stock represents an increase of 30.2% from the last closing price of $34.62. The brokerage target price is currently in the range of $32-$52.

Zacks Investment Research
Image Source: Zacks Investment Research


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