Is DASH Still a Strong Buy After Surging 61% Over the Past 6 Months?
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DoorDash’s DASH shares have surged 61% over the trailing six-month period, significantly outperforming the Zacks Internet - Services industry’s return of 2.9% and the broader Zacks Computer & Technology sector’s appreciation of 0.2%.The company has outperformed its major competitors, such as Amazon AMZN and Alphabet, who are actively expanding their presence in the delivery and logistics sector. Amazon and Alphabet have gained 13.4% and 2.5%, respectively, over the same time frame.DASH’s share price momentum can be attributed to 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.DASH Shares Beat Sector, IndustryImage Source: Zacks Investment ResearchDoorDash Expands With Rising Orders and Ibotta PartnershipDoorDash 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 growth of 19%, totaling $20 billion.To build on this success, DoorDash recently partnered with Ibotta IBTA, joining the Ibotta Performance Network to offer personalized digital promotions and coupons to its customers across categories like grocery, health and beauty, home improvement, and alcohol. By integrating these promotions, DoorDash continues to solidify its position as a comprehensive marketplace beyond restaurant delivery.The collaboration with Ibotta allows DoorDash’s 115,000+ non-restaurant stores in North America to provide added savings while giving Consumer Packaged Goods brands enhanced opportunities to engage consumers using AI-driven optimization and pay-per-sale efficiency.DoorDash Expands Partners to Boost Grocery Delivery ReachDoorDash’s expanding partner base has been noteworthy. It includes Ibotta, Walmart’s WMT 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.Through DoorDash Canada and Walmart Canada’s nationwide collaboration, Canadians now have access to grocery and general merchandise from over 300 Walmart Supercenters through DoorDash’s app and website.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 also announced its collaboration with Max. Per the terms, the company will offer DashPass Annual Plan members a complimentary Max With Ads subscription, providing a $240 annual value for just $96/year.Earnings Estimate Revisions Show Upward Trend for DASHFor 2025, the Zacks Consensus Estimate for earnings is pegged at $1.94 per share, which remained unchanged in the past 30 days. The figure implies a year-over-year increase of 646.24%.DASH’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing in the remaining ones, with the average negative earnings surprise being 86.19%.DoorDash, Inc. Price and Consensus DoorDash, Inc. price-consensus-chart | DoorDash, Inc. QuoteFind the latest EPS estimates and surprises on Zacks Earnings Calendar.The Zacks Consensus Estimate for 2025 revenues is pegged at $12.72 billion, suggesting an increase of 19.16% from 2024’s estimated figure of $10.68 billion.What Should Investors Do With DASH Stock?We point out that DoorDash stock is not so cheap, as the Value Score of D suggests a stretched valuation at this moment.In terms of the Price/Book ratio, DASH is trading at 9.24, higher than the Zacks Internet - Services industry’s 6.31.Price/Book RatioImage Source: Zacks Investment ResearchHowever, DoorDash’s strong portfolio and expanding partner base are contributing to its growth prospects continuously, driving top-line growth. These factors justify the company’s premium valuation. DASH stock currently sports a Zacks Rank #1 (Strong 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 stocks here.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want 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 Amazon.com, Inc. (AMZN): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report Ibotta, Inc. (IBTA): Free Stock Analysis Report DoorDash, Inc. 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Quelle: Zacks