HypeIndex weekly stocks beat the S&P 500 index again

American stocks continued doing well this week, helped by the encouraging economic data, earnings reports, and rising hopes that the Federal Reserve will start cutting interest rates later in September. 

Economic data released this week showed that inflation dropped to 2.9% in July while retail sales boomed during the month. US manufacturing and industrial production and export and import price numbers also rose during the month. 

The most recent data by FactSet showed that earnings growth of all companies in the S&P 500 index rose by over 10% in Q2, the biggest increase since Q4 of 2021. 

Altogether, the S&P 500 index has risen by 3.5% in the past five days while the three companies we spotlighted on our site rose by 3.61%.

DoorDash (NASDAQ: DASH)

Background

DoorDash is a top delivery company in the United States valued at over $50 billion. It competes with companies like Uber, Postmates, and GrubHub. Its annual revenue has grown from less than $900 million in 2019 to over $8.6 billion in 2023. 

DoorDash has continued to gain market share in the food delivery industry by attracting more riders and restaurants. It has also expanded its business in other verticals like groceries and home improvement.

Summary

DoorDash stock price has done well this year as it jumped by over 31%. It has outperformed the benchmark S&P 500 and Nasdaq 100 indices, which have risen by less than 15%.

The stock has risen in the past few days after the company published strong financial results in a difficult quarter. Its revenues rose to $2.6 billion while its gross orders soared to over $19.7 billion. 

Analysts are optimistic that DoorDash will continue its strong growth. The average estimate is that its revenue will jump by 22% this quarter to $2.6 billion and $10.57 billion in 2024. 

Still, there are concerns about DoorDash’s hefty valuation, which stands at over $50 billion. This valuation means that the company has an EV/EBITDA ratio of 25.57, higher than the sector average of 9.57.

• Review date: 13th August

• Hype change: 87%

• Price change: 4.84%

• Sentiment: POSITIVE

ExxonMobil (NYSE: XOM)

Background

ExxonMobil is the biggest oil and gas company in the Western world with a market cap of over $527 billion. Only Saudi Aramco, the company mostly owned by the Saudi Arabian government, is bigger. 

ExxonMobil has grown its business organically and through acquisitions, including the $60 billion buyout of Pioneer Natural Resources that made it a big player in the shale industry. Its annual revenue has soared to over $335 billion while its annual profits have hit over $35 billion.

Summary

ExxonMobil stock did well this week as traders looked at the vibrant oil market and the fact that the Federal Reserve will start cutting rates. Fed cuts are good for Exxon for two main reasons. 

First, the prices of crude oil rise when rates are low since they influence more spending. Also, dividend investors move to such companies because of their higher yields compared to bonds. 

ExxonMobil’s business is also doing well as its profits jumped to $9.2 billion in the last quarter and its revenue came in at $80.7 billion. It also boosted its dividend, as it solidified its stay as a new dividend aristocrat. Analysts believe that Exxon's stock has more upside because of a combination of growth and profitability.

• Review date: 14th August

• Hype change: 73%

• Price change: 1.5%

• Sentiment: POSITIVE

Shopify (NASDAQ: SHOP)

Background

Shopify is a leading technology company that commands a major market share in the e-commerce industry. Its software lets companies from around the world build and manage their e-commerce websites within a unified platform. Shopify is used by millions of companies who pay a subscription fee and transaction fee whenever customers buy. 

Summary on Shopify stock

Shopify stock has done well over the years as it has moved from less than $3 in 2015 to over $75. This growth happened as the company continued gaining market share and growing its revenues and profits.

Shopify continued doing well in the second quarter as its revenue soared by over 21% to $2 billion. Its revenue and earnings numbers were better than what analysts were expecting. Its guidance was also strong as the company is expected to make almost $11.84 billion this year. 

Like Doordash, there are concerns about Shopify’s elevated valuation as the company trades at a price-to-earnings multiple of 197. 

• Review date: 15th August

• Hype change: 90%

• Price change: 4.5%

• Sentiment: POSITIVE

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