Rising Sales Have DoorDash Delivering Gains

Most people know DASH as a meal delivery platform, but what it really offers is a place for merchants, consumers, and contractors to engage. One way DASH has grown is offering tools for order fulfillment, gaining customers, and digital ordering to its merchants. It’s also been expanding local partnerships, including with grocers. This is all building a larger, more profitable ecosystem for the company.

In DASH’s third-quarter report, the company reported a 25% year-over-year rise in revenue, to more than $2.7 billion. The company reversed last year’s $108 million operating income loss by reporting operating income of $107 million. For its quarter ending at the end of this year, analysts expect DASH to increase revenue on a year-over-year basis by 121.1%, to over $2.8 billion, and show a per-share earnings rise of 23%, to $0.93.

It’s no wonder DASH shares are up 81% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Loves DoorDash

Institutional volumes reveal plenty. Recently, DASH has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in DASH shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of discretionary names are under accumulation right now. But there’s a powerful fundamental story happening with DoorDash.

DoorDash Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, DASH has had strong sales growth:

• 1-year sales growth rate (+31.2%)
• 3-year sales growth rate (+45.1%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +611%.

Now it makes sense why the stock has been powering to new heights. DASH has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

DoorDash has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when DASH was a top pick recently…Big Money is driving the stock up:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

DoorDash Price Prediction

The DASH rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in DASH at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.