DoorDash named “Top Pick” by this fund manager

Scotia Wealth Management portfolio manager Stan Wong told BNN Bloomberg’s Market Watch on Sept. 4 that DoorDash (DoorDash Stock Quote, Chart, News, Analysts, Financials NYSE:DASH) is well positioned to benefit from structural shifts in the on-demand economy, citing its scale, brand recognition and expanding range of services.

“DoorDash fits this on-demand theme that is around the world and is growing right now,” Wong said. “It’s ‘I want something and I want it as soon as possible.’ And it’s that last-mile delivery that has been very, very difficult for companies to get their products from their hands to the consumer’s hand. DoorDash commands 65% of the U.S. food delivery market, which is astounding. And they are expanding very quickly into grocery, alcohol, convenience, retail, and obviously into international markets as well.”

He described the company as “the leader in digital convenience,” emphasizing that the appeal is built around speed, reliability and convenience.

“It’s all about the on-demand economy and that last-mile logistics,” he said. “They are very good at that and getting things into the consumer’s hand very, very quickly.”

Wong added that DoorDash’s marketing and subscription model are strengthening its financial outlook.

“They’ve got strong brand recognition, their commercials still ringing in my head all the time. And revenue growth: we expect 2026 revenue to top US$16-billion. You’ve got very high-margin opportunities with their DoorDash subscriptions and their advertising. Similar to Amazon, if you want to order something, sometimes you will see those particular restaurants at the top of the ad or top of the page and that’s advertising.”

He also pointed to margin expansion as a key driver of returns.

“Margins are improving. We see 255 plus earnings growth going forward for this company and double-digit revenue expansion,” he said. “So I think there are major secular tailwinds: more urbanization, more people moving to cities, more people wanting to order things and get things in their hands much quicker than, you know, next day or something. It’s that instant gratification. Everybody’s into that nowadays.”

On valuation, Wong stressed that while dividends are an important part of his investment framework, DoorDash’s growth story outweighs the absence of a payout.

“My approach is always looking at total returns and certainly dividends are part of that return,” he said. “But we don’t want to be chasing exclusively dividend yield, because sometimes you’ll get a company paying 5% dividends, but the stock price is down 15%. Earnings growth can lead to future dividends, but more importantly, it leads to reinvestment and more capital appreciation. Dividends are great and they’re important. They’re one factor, but only one factor of our investment style.”

Shares of DoorDash have risen 97.2% in the past 12 months and 141.6% over the last five years. The Street consensus is bullish: 31 analysts rate the stock a “Buy,” 12 rate it a “Hold” and none recommend “Sell.” The average price target is US$ 296.69.

-30-