Why DoorDash, Inc. (DASH) is a Top Momentum Stock for the Long-Term

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence [1] - The service includes daily updates, access to Zacks Rank, Equity Research reports, and Premium stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days [3] - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics [3] Value Score - The Value Score identifies attractive and discounted stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score helps investors capitalize on price or earnings trends, using factors like one-week price change and monthly earnings estimate changes [6] VGM Score - The VGM Score combines all three Style Scores, serving as a key indicator alongside the Zacks Rank for identifying stocks with strong value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building [8] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.64% since 1988, outperforming the S&P 500 [8] Stock Selection Strategy - Investors should prioritize stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10] - Stocks with lower ranks but high Style Scores may still carry risks if earnings forecasts are declining [11] Company Spotlight: DoorDash, Inc. - DoorDash operates a logistics and technology platform connecting merchants, consumers, and dashers, with an IPO completed in December 2020 [12] - Currently rated 3 (Hold) with a VGM Score of B, and a Momentum Style Score of B, indicating potential for momentum investors [12] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.26 to $2.42 per share, with an average earnings surprise of +35.7% [13]