Evaluating DOORDASH INC - A (NASDAQ:DASH) using Mark Minervini’s winning stock formula

In this article we will dive into DOORDASH INC - A (NASDAQ:DASH) as a possible candidate for growth investing. Investors should always do their own research, but we noticed DOORDASH INC - A showing up in our Minervini growth screen, which makes it worth to investigate a bit more.

DASH passes the Minervini Trend Template check!

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for DASH:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Some of the high growth metrics of DASH highlighted

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. DASH scores a 5 out of 10:

Earnings Momentum

• The earnings per share (EPS) of DASH have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 185.0% increase. This reflects the company's ability to improve its profitability over time.
• Over the past year, DASH has demonstrated 133.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• DASH has experienced 24.75% q2q revenue growth, indicating a significant sales increase.
• With impressive 1-year revenue growth of 24.17%, DASH showcases its ability to generate increased sales and revenue. This growth highlights the company's strong customer demand and its effective business strategies.
• DASH has seen a 11.47% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.

Profitability & Financial Strength

• DASH has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• DASH has shown positive growth in its free cash flow (FCF) over the past year, indicating improved cash generation and financial strength. This growth highlights the company's ability to effectively manage its cash flows and generate surplus funds.
• At a Debt/Equity ratio of 0.0, DASH seems well-positioned to sustain growth while keeping debt in check.

Institutional Confidence & Market Strength

• DASH demonstrates a balanced ownership structure, with institutional shareholders at 91.8%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.
• DASH has exhibited strong Relative Strength(RS) in recent periods, with a current 94.99 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

How does the Setup look for DASH

ChartMill also provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, DASH has a 6 as its setup rating:

Besides having an excellent technical rating, DASH also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 183.76, a Stop Loss order could be placed below this zone.

Check the latest full technical report of DASH for a complete technical analysis.

Concluding

More ideas for high growth momentum stocks can be found on ChartMill in our High Growth Momentum + Trend Template screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.