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DoorDash (DASH) Surges 3.3%: Is This an Indication of Further Gains?

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DoorDash, Inc. (DASH - Free Report) shares ended the last trading session 3.3% higher at $113.88. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.2% loss over the past four weeks.

DoorDash is benefiting from strong order growth and Marketplace GOV, alongside enhanced logistics efficiency and an increasing contribution from advertising.

This company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of +77.3%. Revenues are expected to be $2.54 billion, up 19% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For DoorDash, the consensus EPS estimate for the quarter has been revised 10% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on DASH going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

DoorDash is part of the Zacks Internet - Services industry. Crexendo (CXDO - Free Report) , another stock in the same industry, closed the last trading session 2.5% higher at $3.25. CXDO has returned -9.7% in the past month.

For Crexendo, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.06. This represents a change of +50% from what the company reported a year ago. Crexendo currently has a Zacks Rank of #2 (Buy).


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