DoorDash Inc (NASDAQ:DASH) Emerges as a Strong Contender in Minervini’s Trend-Based Strategy with High Growth Momentum

DoorDash Inc (NASDAQ:DASH) has become a possible choice for investors using Mark Minervini’s trend-based strategy along with a focus on high-growth momentum. The Minervini Trend Template spots stocks in strong upward trends by analyzing moving averages, relative strength, and price movement, while the High Growth Momentum (HGM) filter confirms the company shows improving earnings and revenue growth, important factors for continued success.

Why DoorDash Matches the Minervini Trend Template

The Minervini Trend Template needs stocks to fulfill several technical conditions to confirm a strong upward trend. DoorDash meets all the requirements:

• Price Above Key Moving Averages:

  • Current price ($254.20) is significantly higher than the 50-day SMA ($238.16), 150-day SMA ($205.62), and 200-day SMA ($196.87).
  • The 50-day SMA is higher than both the 150-day and 200-day SMAs, showing positive momentum.
  • The 200-day SMA is moving upward, indicating long-term stability.

• Strong Relative Strength:

  • With a ChartMill Relative Strength (CRS) score of 93.65, DoorDash performs better than 93% of all stocks, a sign of market leadership.

• Price Near 52-Week High:

  • Trading at $254.20, DoorDash is within 8.6% of its 52-week high ($278.15) and 108% above its 52-week low ($122.32), showing continued upward movement.

These points match Minervini’s approach of focusing on stocks in Stage 2 (upward trend) with institutional support and solid price movement.

High Growth Momentum Fundamentals

Beyond technical strength, DoorDash shows improving growth, a key factor for high-growth investors:

• Earnings Growth:

  • EPS (TTM) growth: +319.5% YoY
  • Quarterly EPS growth (Q2Q): +461.1% (latest quarter)
  • EPS estimate beats: 3 out of the last 4 quarters, with an average beat of 31.5%

• Revenue Growth:

  • Revenue (TTM) growth: +23.8% YoY
  • Quarterly revenue growth (Q2Q): +24.9% (latest quarter)

• Profit Margin Expansion:

  • Latest quarter profit margin: 8.68%, up from 6.37% in the prior quarter and 4.91% two quarters ago.

This mix of strong earnings improvement, revenue growth, and better margins suggests DoorDash is not only growing but doing so effectively, a key feature of high-momentum stocks.

Technical Analysis Summary

According to ChartMill’s technical report, DoorDash scores a perfect 10/10 on technical health, supported by:

• Strong upward trends in both short-term and long-term periods.
• Better performance than 93% of stocks and 93% of its industry peers (Hotels, Restaurants & Leisure).
• Multiple support levels, including a key range at $234.49-$238.16 (combining moving averages and trendlines).

While the setup quality (5/10) indicates some volatility, the overall trend remains strong, making DoorDash a potential pick for trend-based investors willing to wait for a pullback before entering.

Find More High-Growth Momentum Stocks

For investors looking for similar high-growth, technically sound stocks, the High Growth Momentum + Trend Template Screen offers a selected list of stocks meeting these conditions.

Disclaimer: This is not investment advice. Always do your own research and consider risk management before making investment decisions.