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Zacks Rank #1 (Strong Buy) stock DoorDash ((DASH – Free Report) ) is the leader in the food delivery service industry. The DoorDash app enables customers to connect with local restaurants. Through its platform, users can browse menus, view reviews from previous customers, place orders, and have food delivered directly to their doorsteps within minutes. DoorDash partners with a wide range of restaurants, offering customers a diverse selection of cuisines and dining options. The company employs a network of independent contractors, known as Dashers, who pick up restaurant orders and deliver them to the customer efficiently. DoorDash has become a popular solution for those seeking convenient and reliable food delivery services.
More Partnerships Lead to Growing RevenuesDoorDash consistently invests in expanding its partner base to offer consumers more options for its on-demand delivery platform. For example, its latest partnerships include non-restaurant options such as grocers like Sprouts Farmers Market ((SFM – Free Report) ) and Aldi, Dick’s Sporting Goods ((DKS – Free Report) ), and discount retailers like Big Lots ((BIG – Free Report) ) and Grocery Outlet ((GO – Free Report) ). Through its expanded partnership with Aldi, customers can also order alcohol – a significant potential revenue stream. With these new partnerships and the pipeline of continuous additions, DoorDash’s total orders and revenue will likely continue to expand drastically.Image Source: Zacks Investment Research
Cashing in on the New EconomyThe COVID-19 pandemic has significantly impacted consumer behavior, creating an environment where on-demand services like DoorDash can experience growth. Initially, with lockdowns and social distancing measures in place, more consumers turned to food delivery as an alternative to dining out. Though COVID-19 may be behind us, the emergence of the “new economy” emphasizes flexible employment. This benefits DoorDash in two ways. First, people working from home may use food delivery services more than if they were in the office. Second, DoorDash may be able to recruit more “Dashers” who are looking for flexible work in its network to fulfill deliveries.
DASH Takes Advantage of Low Wall Street ExpectationsDASH missed Wall Street expectations in its first eight quarters as a public company. However, the company is turning things around and has beat expectations in three of the past four quarters including a healthy 57.78% surprise last quarter. Though analysts are becoming more bullish on the stock, it appears that the company’s turnaround story is moving even faster in the right direction.Image Source: Zacks Investment Research
Technical View: An Attractive Reward-to-Risk ZoneDASH shares are retreating to their 10-week moving average for the first time since its November breakout. The first pullback to the 10-week moving average after a significant breakout tends to provide traders with a high reward-to-risk zone to trade against. In addition, this week, shares are breaking out from a classic weekly bull flag.Image Source: TradingView
Bottom LineDoorDash stands out as a leader in the food delivery service industry. The company’s strategic expansion beyond traditional partnerships will spur revenue growth. Furthermore, the “new economy” will benefit the company for years to come.More By This Author:2 Top-Ranked Chip Stocks To Buy For Income
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