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DASH Up 53% in the Past 6 Months: Is the Stock Still a Screaming Buy?
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DoorDash’s (DASH - Free Report) shares have surged 53.4% over the trailing six-month period compared with the Zacks Internet - Services industry’s return of 7.7% and the broader Zacks Computer & Technology sector’s appreciation of 7.9%.
The company has outperformed its major competitors, such as Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) , who are actively expanding their presence in the delivery and logistics sector. Amazon and Alphabet have gained 21% and 8.5%, respectively, over the trailing six-month period.
DASH’s robust price performance has been driven by strong growth in total orders and Marketplace Gross Order Value (GOV), enhanced logistics efficiency and increased advertising contribution.
DoorDash is gaining momentum in new verticals, particularly in the grocery segment, which further strengthens its growth potential.
DoorDash is benefiting from an expanding clientele that enhanced its order volume and registered a year-over-year increase of 18% in the third quarter of 2024. The metric reached a total of 643 million orders. The marketplace GOV also experienced robust 19% growth, totaling $20 billion.
The company’s expanding clientele, which includes Walmart Canada, Wegmans Food Markets, Lyft (LYFT - Free Report) , Warner Bros. Discovery’s streaming service, Max, and JPMorgan Chase & Co.’s U.S. consumer and commercial banking division, Chase, have acted as catalysts for growth, significantly broadening DoorDash’s reach and enhancing its service offerings.
In November, DoorDash Canada and Walmart Canada announced a nationwide collaboration, offering Canadians on-demand access to grocery and general merchandise essentials from over 300 Walmart Supercenters.
In October, DoorDash and Lyft announced a partnership to provide benefits on rides and local delivery. DashPass members can avail monthly benefits on ride sharing at no additional cost, and eligible Lyft riders would receive a free trial of DashPass.
Further bolstering its presence in the grocery delivery market, DoorDash announced an expanded partnership with Wegmans Food Markets. The partnership enables grocery delivery from all Maryland locations and soon from stores in Virginia, North Carolina, New Jersey, Delaware, and upstate New York. The partnership also includes a promotional offer for customers.
DoorDash’s Offers Strong Q4 Guidance
DoorDash’s strength in total orders and Marketplace GOV is expected to benefit its top-line growth. It is also gaining momentum in new verticals, particularly in the grocery segment, further strengthening its growth potential.
For the fourth quarter of 2024, DoorDash anticipates Marketplace GOV in the range of $20.6-$21 billion.
The Zacks Consensus Estimate for fourth-quarter 2024 revenues is pegged at $2.83 billion, indicating 22.93% year-over-year growth.
The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at 33 cents per share, which remained unchanged in the past 30 days. The figure indicates year-over-year growth of 184.62%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
What Should Investors Do With DASH Stock?
We point out that DoorDash stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
In terms of the Price/Book ratio, DASH is trading at 9.33, higher than the Zacks Internet - Services industry’s 6.33.
However, DoorDash’s strong portfolio and expanding partner base are contributing to its growth prospects continuously, driving top-line growth.
Image: Bigstock
DASH Up 53% in the Past 6 Months: Is the Stock Still a Screaming Buy?
DoorDash’s (DASH - Free Report) shares have surged 53.4% over the trailing six-month period compared with the Zacks Internet - Services industry’s return of 7.7% and the broader Zacks Computer & Technology sector’s appreciation of 7.9%.
The company has outperformed its major competitors, such as Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) , who are actively expanding their presence in the delivery and logistics sector. Amazon and Alphabet have gained 21% and 8.5%, respectively, over the trailing six-month period.
DASH’s robust price performance has been driven by strong growth in total orders and Marketplace Gross Order Value (GOV), enhanced logistics efficiency and increased advertising contribution.
DoorDash is gaining momentum in new verticals, particularly in the grocery segment, which further strengthens its growth potential.
DoorDash, Inc. Price and Consensus
DoorDash, Inc. price-consensus-chart | DoorDash, Inc. Quote
DASH’s Expands Reach With Key Partnerships
DoorDash is benefiting from an expanding clientele that enhanced its order volume and registered a year-over-year increase of 18% in the third quarter of 2024. The metric reached a total of 643 million orders. The marketplace GOV also experienced robust 19% growth, totaling $20 billion.
The company’s expanding clientele, which includes Walmart Canada, Wegmans Food Markets, Lyft (LYFT - Free Report) , Warner Bros. Discovery’s streaming service, Max, and JPMorgan Chase & Co.’s U.S. consumer and commercial banking division, Chase, have acted as catalysts for growth, significantly broadening DoorDash’s reach and enhancing its service offerings.
In November, DoorDash Canada and Walmart Canada announced a nationwide collaboration, offering Canadians on-demand access to grocery and general merchandise essentials from over 300 Walmart Supercenters.
In October, DoorDash and Lyft announced a partnership to provide benefits on rides and local delivery. DashPass members can avail monthly benefits on ride sharing at no additional cost, and eligible Lyft riders would receive a free trial of DashPass.
Further bolstering its presence in the grocery delivery market, DoorDash announced an expanded partnership with Wegmans Food Markets. The partnership enables grocery delivery from all Maryland locations and soon from stores in Virginia, North Carolina, New Jersey, Delaware, and upstate New York. The partnership also includes a promotional offer for customers.
DoorDash’s Offers Strong Q4 Guidance
DoorDash’s strength in total orders and Marketplace GOV is expected to benefit its top-line growth. It is also gaining momentum in new verticals, particularly in the grocery segment, further strengthening its growth potential.
For the fourth quarter of 2024, DoorDash anticipates Marketplace GOV in the range of $20.6-$21 billion.
The Zacks Consensus Estimate for fourth-quarter 2024 revenues is pegged at $2.83 billion, indicating 22.93% year-over-year growth.
The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at 33 cents per share, which remained unchanged in the past 30 days. The figure indicates year-over-year growth of 184.62%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
What Should Investors Do With DASH Stock?
We point out that DoorDash stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
In terms of the Price/Book ratio, DASH is trading at 9.33, higher than the Zacks Internet - Services industry’s 6.33.
However, DoorDash’s strong portfolio and expanding partner base are contributing to its growth prospects continuously, driving top-line growth.
DASH stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.