DoorDash Surges 74% Year to Date: Should Investors Buy the Stock?

DoorDash‘s DASH shares have surged 74.4% in the year-to-date period compared with the Zacks Internet - Services industry’s increase of 25.5% and the broader Zacks Computer & Technology sector’s appreciation of 27.8%.DASH’s robust stock price performance has been driven by strong total orders and Marketplace Gross Order Value (GOV) performance, 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.The company 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.DoorDash, Inc. Price and Consensus DoorDash, Inc. price-consensus-chart | DoorDash, Inc. QuoteDASH’s Growing Portfolio and Partnerships Boost ProspectsDoorDash’s expanding clientele, which includes Wegmans Food Markets, Warner Bros. Discovery’s WBD streaming service, Max, JPMorgan Chase & Co.’s JPM U.S. consumer and commercial banking division, Chase, and Lyft LYFT, have acted as catalysts for growth, significantly broadening DoorDash’s reach and enhancing its service offerings.In August, DASH announced a partnership with Warner Bros. Discovery’s streaming service, Max, allowing DashPass Annual Plan members to access Max With Ads at no additional cost, enhancing its streaming and food delivery experience. This approach is likely to attract more subscribers, further boosting DoorDash’s order volume.DoorDash also expanded its partnership with JPMorgan Chase & Co.’s U.S. consumer and commercial banking division, Chase, offering extended DashPass benefits, including up to $10 off monthly promos for Sapphire cardmembers and new benefits for Freedom and Slate cardholders.In October, DoorDash and Lyft announced a partnership to provide benefits on rides and local delivery. DashPass members would be able to avail monthly benefits on ridesharing at no additional cost, and eligible Lyft riders would receive a free trial of DashPass.DASH’s expanding portfolio has also been a major growth driver. In September, the company introduced a suite of new products, including the DoorDash Commerce Platform, to help merchants grow and manage businesses on its channels, both in-store and online.DoorDash’s Offers Strong Q4 GuidanceDoorDash’s strength in total orders and Marketplace GOV is expected to benefit its top-line growth.For the fourth quarter, 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 22.77% year-over-year growth.The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, up 68% in the past 30 days. The figure indicates a year-over-year increase of 182.05%.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 Price/Book ratio, DASH is trading at 9.45X, higher than the Zacks Internet - Services industry’s 5.85X.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.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Warner Bros. Discovery, Inc. (WBD): Free Stock Analysis Report Lyft, Inc. (LYFT): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks