We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In terms of the forward 12-month Price/Sales ratio, DASH is trading at 5.94, higher than its median of 5.12 and the industry’s 4.75.
Price/Sales (F12M)
Image Source: Zacks Investment Research
However, DoorDash’s shares have rallied 13.2% in the year-to-date period, significantly outperforming the Zacks Internet - Services industry’s decrease of 11.3% and the broader Zacks Computer & Technology sector’s decline of 8.2%.
DASH Outperformed Sector, Industry
Image Source: Zacks Investment Research
The outperformance can be attributed to strong order growth and rising Marketplace GOV, along with enhanced logistics efficiency and a growing contribution from advertising.
Can DoorDash sustain its strong order growth and rising Marketplace GOV to justify its premium valuation?
DoorDash Expands Partners to Boost Grocery Delivery Reach
DoorDash is benefiting from an expanding clientele, which has enhanced its order volume and resulted in a year-over-year increase of 19% in the fourth quarter of 2024. The metric reached a total of 685 million orders. The marketplace GOV also experienced robust growth of 21%, totaling $21.3 billion, reflecting strong demand across platforms.
DoorDash’s expanding partner base has been noteworthy. It includes Ibotta (IBTA - Free Report) , Walmart’s Canadian division Walmart Canada, Wegmans Food Markets, Lyft, Warner Bros. Discovery’s streaming service, Max, and JPMorgan Chase & Co.’s U.S. consumer and commercial banking division, Chase, which have acted as catalysts for growth, significantly broadening DoorDash’s reach and enhancing its service offerings.
In January, DASH partnered with Ibotta to integrate the latter’s extensive catalog of digital promotions into DoorDash’s platform. This offers customers personalized savings across various categories while providing CPG brands with enhanced opportunities to reach consumers through DoorDash’s 115,000+ non-restaurant stores through the Ibotta Performance Network’s AI-driven pay-per-sale promotions.
Through DoorDash Canada and Walmart Canada’s nationwide collaboration, Canadians now have access to grocery and general merchandise from over 300 Walmart Supercenters via DoorDash’s app and website. This initiative strengthens DoorDash’s grocery delivery presence and underscores its ability to facilitate seamless shopping experiences beyond traditional restaurant partnerships.
DASH Grows With Home Depot Partnership for Quick Delivery
DoorDash has expanded its offerings beyond restaurants, such as launching its commerce platform and growing its presence in grocery delivery and other local commerce categories. The success in expanding to new verticals has contributed positively to revenue and market shares.
Building on this success in January, DASH announced a partnership with The Home Depot (HD - Free Report) , enabling on-demand delivery of home improvement essentials directly through the DoorDash app.
The collaboration with Home Depot allows customers and professionals to have products delivered in as little as an hour, enhancing convenience for DIY projects and job sites. With more than 115,000 non-restaurant stores available, DoorDash continues to expand its marketplace, offering a variety of products beyond food.
Earnings Estimate Revisions Show Upward Trend for DASH
For 2025, the Zacks Consensus Estimate for earnings is pegged at $2.23 per share, indicating a 2.2% increase over the past 30 days. The figure implies a year-over-year increase of 668.97%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The Zacks Consensus Estimate for 2025 revenues is pegged at $12.95 billion, suggesting an increase of 20.79% from 2024’s estimated figure of $10.72 billion.
DoorDash Faces Rising Competition as Grubhub Expands Reach
DoorDash’s strong portfolio and expanding partner base continuously contribute to its growth prospects, driving top-line growth. However, this growth is challenged by the highly competitive environment in its largest segment, local food delivery logistics.
The market is extremely fragmented, and DoorDash is constantly battling for market share with other local food delivery logistics platforms such as Uber Eats and Grubhub (JTKWY - Free Report) . As competition intensifies, companies are seeking new ways to differentiate themselves and expand their market presence.
In February 2025, Grubhub took a significant step in differentiating itself by partnering with Walgreens to add Walgreens and Duane Reade locations nationwide to its marketplace.
This partnership provides customers with access to 15,000 items, including beauty products, health essentials, snacks, and household items, for on-demand delivery. As part of Grubhub+, members enjoy benefits such as $0 delivery fees, lower service fees, and exclusive discounts on eligible orders, further enhancing the company’s competitive edge in the market.
Image: Bigstock
Should You Buy, Sell or Hold DoorDash Stock at P/S of 5.94X?
DoorDash (DASH - Free Report) shares are currently overvalued, as suggested by its Value Score of F.
In terms of the forward 12-month Price/Sales ratio, DASH is trading at 5.94, higher than its median of 5.12 and the industry’s 4.75.
Price/Sales (F12M)
Image Source: Zacks Investment Research
However, DoorDash’s shares have rallied 13.2% in the year-to-date period, significantly outperforming the Zacks Internet - Services industry’s decrease of 11.3% and the broader Zacks Computer & Technology sector’s decline of 8.2%.
DASH Outperformed Sector, Industry
Image Source: Zacks Investment Research
The outperformance can be attributed to strong order growth and rising Marketplace GOV, along with enhanced logistics efficiency and a growing contribution from advertising.
Can DoorDash sustain its strong order growth and rising Marketplace GOV to justify its premium valuation?
DoorDash Expands Partners to Boost Grocery Delivery Reach
DoorDash is benefiting from an expanding clientele, which has enhanced its order volume and resulted in a year-over-year increase of 19% in the fourth quarter of 2024. The metric reached a total of 685 million orders. The marketplace GOV also experienced robust growth of 21%, totaling $21.3 billion, reflecting strong demand across platforms.
DoorDash’s expanding partner base has been noteworthy. It includes Ibotta (IBTA - Free Report) , Walmart’s Canadian division Walmart Canada, Wegmans Food Markets, Lyft, Warner Bros. Discovery’s streaming service, Max, and JPMorgan Chase & Co.’s U.S. consumer and commercial banking division, Chase, which have acted as catalysts for growth, significantly broadening DoorDash’s reach and enhancing its service offerings.
In January, DASH partnered with Ibotta to integrate the latter’s extensive catalog of digital promotions into DoorDash’s platform. This offers customers personalized savings across various categories while providing CPG brands with enhanced opportunities to reach consumers through DoorDash’s 115,000+ non-restaurant stores through the Ibotta Performance Network’s AI-driven pay-per-sale promotions.
Through DoorDash Canada and Walmart Canada’s nationwide collaboration, Canadians now have access to grocery and general merchandise from over 300 Walmart Supercenters via DoorDash’s app and website. This initiative strengthens DoorDash’s grocery delivery presence and underscores its ability to facilitate seamless shopping experiences beyond traditional restaurant partnerships.
DASH Grows With Home Depot Partnership for Quick Delivery
DoorDash has expanded its offerings beyond restaurants, such as launching its commerce platform and growing its presence in grocery delivery and other local commerce categories. The success in expanding to new verticals has contributed positively to revenue and market shares.
Building on this success in January, DASH announced a partnership with The Home Depot (HD - Free Report) , enabling on-demand delivery of home improvement essentials directly through the DoorDash app.
The collaboration with Home Depot allows customers and professionals to have products delivered in as little as an hour, enhancing convenience for DIY projects and job sites. With more than 115,000 non-restaurant stores available, DoorDash continues to expand its marketplace, offering a variety of products beyond food.
Earnings Estimate Revisions Show Upward Trend for DASH
For 2025, the Zacks Consensus Estimate for earnings is pegged at $2.23 per share, indicating a 2.2% increase over the past 30 days. The figure implies a year-over-year increase of 668.97%.
DoorDash, Inc. Price and Consensus
DoorDash, Inc. price-consensus-chart | DoorDash, Inc. Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The Zacks Consensus Estimate for 2025 revenues is pegged at $12.95 billion, suggesting an increase of 20.79% from 2024’s estimated figure of $10.72 billion.
DoorDash Faces Rising Competition as Grubhub Expands Reach
DoorDash’s strong portfolio and expanding partner base continuously contribute to its growth prospects, driving top-line growth. However, this growth is challenged by the highly competitive environment in its largest segment, local food delivery logistics.
The market is extremely fragmented, and DoorDash is constantly battling for market share with other local food delivery logistics platforms such as Uber Eats and Grubhub (JTKWY - Free Report) . As competition intensifies, companies are seeking new ways to differentiate themselves and expand their market presence.
In February 2025, Grubhub took a significant step in differentiating itself by partnering with Walgreens to add Walgreens and Duane Reade locations nationwide to its marketplace.
This partnership provides customers with access to 15,000 items, including beauty products, health essentials, snacks, and household items, for on-demand delivery. As part of Grubhub+, members enjoy benefits such as $0 delivery fees, lower service fees, and exclusive discounts on eligible orders, further enhancing the company’s competitive edge in the market.
Conclusion
DoorDash currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.