Monday's IBD 50 Stocks To Watch pick, food delivery leader DoorDash, is approaching its latest buy point, looking to add to its 43% advance in 2025. That makes DoorDash stock one of the best to watch right now.
DoorDash, based in San Francisco, provides restaurant food delivery service and is on the IBD Leaderboard Leaders list.
On May 6, DoorDash reported first-quarter earnings that surged 833% year over year. The company swung to a profit of 44 cents per share from a loss of six cents per share in the year-ago period. Revenue jumped 21% to $3.03 billion. The company's annual earnings for 2025 are expected to grow 655% before slowing to 67% growth in 2026, according to IBD MarketSurge.
In early May, DoorDash said it would spend $3.86 billion to acquire U.K.-based Deliveroo and $1.2 billion for New York-based restaurant technology company SevenRooms.
DoorDash stock analysts were mostly positive on the potential Deliveroo acquisition, after it was disclosed in late April. They noted that DoorDash's existing market had minimal overlap with Deliveroo's operations.
The deal for SevenRooms, the OpenTable competitor, allows DoorDash to offer merchants "new tools to grow in-store and delivery sales," according to the company announcement.
SevenRooms offers software tools for restaurants that manage marketing, operations and guest experiences, including booking reservations. The company was founded in 2011. DoorDash said it will integrate those tools into its "Commerce Platform" for restaurants.
Tesla, Broadcom Recharge This Elite List Of 17 Stocks
DoorDash Stock Eyes Buy Point
Following a more than 20% rally from a double-bottom entry at 201.03, DoorDash stock has formed a three-weeks-tight pattern that offers a follow-on entry at 248.74, per IBD MarketSurge chart analysis. Shares climbed modestly midday Monday.
The three-weeks-tight pattern forms when a stock closes within 1.5% of the prior week's close for two straight weeks. Volume will be quiet during this period as the stock consolidates after breaking out of its base. This signals institutional investors are comfortable with the stock's advance.
DoorDash stock boasts perfect 99 IBD Composite Rating, according to IBD Stock Checkup. That makes the food delivery leader one of the best stocks to watch in the ongoing stock market rally.
With IBD's recommended equity exposure range of 80%-100%, investors have the flexibility to buy breakouts among top stocks.
The relative strength line notched a new high in recent weeks, a confirmation that DoorDash stock remains a true stock market leader. The RS line measures a stock's price performance vs. the S&P 500 and provides insight into a stock's market leadership status.
DoorDash stock has a 21-day average true range (ATR) of 2.91%. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks with a high ATR tend to make large price moves that can trigger sell rules. Stocks with lower ATRs tend to make more incremental moves.
With the S&P 500 and Nasdaq now in a power trend, investors can buy stocks with ATRs up to 8%, though they should be wary of being too concentrated in high-octane names.
Sorry, Microsoft. Nvidia Stock Now Wears This Crown.
Best Stocks To Watch
These three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to watch:
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Urban Outfitters | 74.45 | Cup with handle | |
| Atour Lifestyle | 34.23 | Flat base | |
| Shopify | 117.36 | Cup with handle |
Source: IBD Data As Of July 14
Follow Scott Lehtonen on X at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
