As innumerable individuals around the world became intimately familiar with staying home for extended periods of time, certain stocks boomed. The food delivery industry thrived as much through the pandemic as restaurants initially suffered, and the trend for delivery appears to have set in as the preferred way to procure something tasty to eat whether or not we’re constrained by lockdown. Certain food delivery stocks have soared and remain at a price point many times their pre-corona value. We’ll be taking you through a look at four of the top food delivery stocks to watch, supplying a mid-term forecast for Uber, Doordash, Domino’s Pizza and Walmart.
Uber Technologies – UberEats (NYSE: UBER)
Uber Technologies Inc. has had mixed performance at the start of 2022, and as of the close of February, stock is down a whopping 32.23% for the year. Fourth-quarter earnings reports proved Uber profitable for the second quarter in a row. Revenues climbed 83% to $5.8 billion, while delivery revenues were up 78% and accounted for $2.42 billion of the total. The company also forecasts $5 billion in profit by the close of 2024, which is 700 million off previous estimations, a shortfall projection that edged stock even lower than it was already trading. At 34.64, UBER was close to its 52 week low as of February 24th. Out of 41 Wall Street analyst forecasts, Uber averages a median price objective of $60.03 with a low of 34.87 and a high of 80. With mobility in full-blown recovery and driverless deliveries coming later this year, you’re not going to find Uber shares this near bottom ground for very much, much longer.
Doordash, Inc. (NYSE: DASH)
America’s largest food delivery company, Doordash, Inc., was trading at almost twenty times its revenue amid the height of the pandemic but has plummeted roughly 38% in 2022, leading many to consider whether or not DASH is a buy. Doordash smashed revenue expectations by $16.28 million, growing by 34.02% to $1.3 billion for the year. Dooordash’s subscription service has steadily brought in 10 million lasting customers so far, which keeps the company’s order frequency consistency high. Restaurant acquisition is performing well at just over 150,000 new restaurants added in 2021, and more are added by the day. The company is even launching Doordash Capital this year which offers local restaurants business loans. After factoring in the recent decline in share price, several analysts, including associates from JPMorgan and Susquehanna Bancshares, recently reduced their price objectives for DoorDash. Company stock still has a median price target of $181.11, averaged from 21 ratings. Whether DoorDash manages to reach its low of $135, median, or high of $235, stock certainly has considerable room for growth, seeing that it is trading well below its IPO price of $102 per share.
Domino’s Pizza (NYSE: DPZ)
Domino’s Pizza isn’t only working hard at growing labour-intensive food delivery, but it’s been steadily fueling its carryout sales as well. Despite a challenging start to the year following slightly disappointing fourth-quarter results where the company missed profit and revenue expectations, Domino’s does boast 13 years straight of positive growth, growing sales for 2021 by 3.5%, and the chain beat Pizza Hut’s store count by reaching 6,560 stores in the United States as opposed to 6,548. Free cash flow is up 36% from pre-pandemic levels to $560 million. Wall Street analysts arise at a median price objective of 502.96 with a low of $441 and a high of $642. DPZ is just over 15% away from its median forecast after opening at $425.33 on February 2nd. The current trading price is also well-positioned within the 52-week range of 319.71 – 567.57, which leads us to think that the recent slippage is nothing but a potential opportunity to buy.
Walmart (NYSE: WMT)
US retail titan Walmart is a fantastic stock for 2022 that’s got ample room for international expansion despite a solid foundation in the US that protects it from volatility. Over the last ten years, Walmart stock has been dead stable, delivering returns falling just under 200%. While every investment requires due diligence from the trader, the vast majority of investors consider Walmart a safe bet that you don’t need to pay constant attention to or worry about. Sure, you won’t get the best gains ever as a well-established firm, but Walmart is still growing. In 2021. net sales grew to 6.3%, and at the time of writing at the beginning of March, Walmart stock opened at $135.66, which is just under 19% away from the median price objective of $165 reached from the average of 33 analysts. Morgan Stanley’s Simeon Gutman adjusted his guidance to ‘Overweight’, indicating that he feels WMT is better value than similar stocks, and we’re confident that he is right.
Note: Please do not invest money or assets in the financial markets that you cannot afford to lose. This article should not be construed to be investment advice and is for information purposes only