Food delivery is a high-growth business and offers several candidates for growth-stock watchlists. DoorDash stands out as it nears a buy point of 201.03 after its spectacular performance in 2023 and 2024. Shares are also on track for an eight-day winning streak. DoorDash stock is Thursday's selection for IBD 50 Stocks To Watch.
Sales growth has been steady over the past eight quarters, ranging from 23% to 40%. The company turned around to profitability in its two most recent quarters.
The weekly chart on IBD MarketSurge shows DoorDash stock undercut an earlier base and reset its base count. The stock has formed an early-stage, double-bottom base after its massive run in 2023 and 2024. In 2024, shares gained 70%. The move followed an even more impressive performance in 2023, when DoorDash stock gained 103%.
Earnings for the first quarter are due Wednesday. Analysts estimate a 23% increase in sales of $3.1 billion, according to MarketSurge. DoorDash is expected to swing to a profit 39 cents per share. It lost 6 cents per share a year earlier. The results will arrive following news this week that DoorDash offered to buy British delivery company Deliveroo for $3.6 billion.
DoorDash holds a stellar Composite Rating of 98. The EPS Rating meets the required threshold of 80. Shares have outperformed 95% of other stocks in the Investor's Business Daily database over the past 52 weeks.
DoorDash Stock: Strong Institutional Support
DoorDash provides a platform and marketplace for restaurants and convenience, grocery and pet stores in more than 30 countries. Businesses use the platform to market their products, and receive orders for delivery and pickup.
Support from big institutional buyers has been impressive and has increased over the past seven quarters as more funds added DoorDash stock to their holdings. Nearer term, funds have been net buyers over the past 13 weeks, giving the stock an Accumulation/Distribution Rating of B-.
In the IBD mutual fund index, the Artisan Mid Cap Fund, Allspring Growth Fund, and the Fidelity Contrafund are among several other mutual funds that hold the stock.
DoorDash ranks third in the retail internet group, according to IBD Stock Checkup. The group holds 45th place among IBD's 197 industry groups.
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