We recently compiled a list of the Jim Cramer’s Latest Game Plan: 20 Stocks to Watch. In this article, we are going to take a look at where DoorDash, Inc. (NASDAQ:DASH) stands against the other stocks featured in Jim Cramer’s latest game plan.
Jim Cramer, the host of Mad Money, recently advised investors to maintain composure as major companies release their earnings this week. Additionally, he highlighted the significance of the upcoming nonfarm payroll report, set to be released on Friday, which he believes will have considerable implications for interest rates.
He said that weak hiring figures could prompt the Federal Reserve to continue cutting rates. Last Friday, Cramer noted a mixed performance in the markets: the Dow dropped by 260 points, the S&P fell slightly by 0.03%, while the Nasdaq managed a gain of 0.56%. Cramer characterized the current market conditions as a preparatory phase for an eventful week ahead, urging viewers to pay close attention.
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Cramer emphasized the importance of the employment data released on the first Friday of the month, particularly in light of the forthcoming Fed meeting.
“Speaking of employment, on the first Friday of the month, we get the nonfarm payroll report. I can’t stress how important this number is. We have an upcoming Fed meeting and we’re now seeing [that] cyclicals really missed their numbers because of higher interest rates. A lot of them are rolling over. But if employment stays as strong as it’s been, then we’re going to hear that there will be no November rate cut.”
Throughout his commentary, Cramer conveyed a clear message: while it may be tempting to sell, this period aligns with a cycle of Fed rate cuts, suggesting that buying could be the more prudent strategy. He reminded viewers that this week feels charged with significance, likening it to a playoff atmosphere where the stakes are exceptionally high.
In his concluding remarks, Cramer said:
“Bottom line, huge week, huge opportunity. Just please remember, the first move’s been the wrong move, I’d say probably maybe, almost half the time since this earnings season began. Wait to process the numbers, listen to the conference call before you pull the trigger.”
Our Methodology
For this article, we compiled a list of 20 stocks that were discussed by Jim Cramer during his episode of Mad Money on October 25. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A shot of a delivery driver zooming down a busy street, symbolizing the company’s quick and efficient delivery services.
DoorDash, Inc. (NASDAQ:DASH)
Number of Hedge Fund Holders: 67
Cramer predicts that DoorDash, Inc. (NASDAQ:DASH) will post a strong third-quarter earnings report on October 30.
“… Doordash reports. Yeah, I think it’ll be very strong and should shed some more light on consumers. Then all sorts of traders will start to extrapolate from the results to the Fed’s next move. Time-honored ‘dog bites man’ stuff. Don’t let it get to you.”
DoorDash (NASDAQ:DASH) operates a global commerce platform that connects merchants, consumers, and independent contractors, offering services such as order fulfillment, payment processing, and customer support through its DoorDash Marketplace and Wolt Marketplace, along with various membership products and digital solutions for merchants. The company has also expanded its services into grocery and retail markets, positioning itself for substantial future growth.
With over 100,000 retailers on its platform, the company features well-known brands such as Victoria’s Secret, JD Sports, and Camping World. A significant partnership announced in May with Ulta Beauty, the largest beauty retailer in the United States, aims to further diversify offerings and enhance customer engagement.
On October 24, Mizuho analyst James Lee raised the price target on DoorDash (NASDAQ:DASH) to $173 from $162 and kept an Outperform rating. According to the analyst, demand for gig economy services remains strong amidst easing inflation and favorable unit economics.
Industry insights suggest that leading companies in ride-sharing and food delivery are expected to capture additional market share and benefit from operational efficiencies. With a focus on improving marketing efforts, DoorDash aims to build volume and drive growth in the latter half of the year, making it a top pick for the firm.
Overall DASH ranks 13th on the list of stocks featured in Jim Cramer’s latest game plan. While we acknowledge the potential of DASH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DASH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.