Summary
⚈ DoorDash is expanding beyond food delivery with new partnerships, while Expand Energy is scaling natural gas production and improving efficiency.
⚈ Both companies show strong potential, but their future growth will also depend on broader stock market conditions.
At the end of the first quarter, the S&P 500 welcomed four new additions during its regular rebalancing: DoorDash (NASDAQ: DASH), TKO Group Holdings (NYSE: TKO), Williams-Sonoma (NYSE: WSM), and Expand Energy (NASDAQ: EXE).
Among them, DoorDash and Expand Energy currently stand out as compelling investment opportunities, backed by strong fundamentals.
DoorDash (NASDAQ: DASH)
DoorDash continues to strengthen its foothold in the delivery and local commerce space. Its recent inclusion in the S&P 500 marks a significant milestone as the company evolves from a niche food delivery service into a diversified commerce platform.
In Q1 2025, DoorDash’s total orders rose 18% year-over-year to 732 million, while marketplace gross order value (GOV) grew 20% to $23.1 billion. Revenue increased 21% to $3 billion, with the net revenue margin holding steady at 13.1%.
This growth is driven by the firm’s expansion into new verticals and partnerships that extend beyond traditional restaurant delivery. For instance, recent collaborations with Ibotta, Walmart Canada, Wegmans, Chase, Max, and Lyft have broadened its offerings and improved customer reach.
In this case, the Ibotta partnership enables AI-driven promotions across more than 115,000 non-restaurant retail locations, benefiting consumers and consumer goods brands.
Additionally, DoorDash’s venture into the home improvement category through its alliance with The Home Depot allows customers to receive tools and materials on demand, often within an hour.
Nonetheless, the delivery market remains highly competitive. In this case, rivals like Uber Eats and Grubhub continue to innovate and expand, with Grubhub recently partnering with Walgreens to add 15,000 products from Walgreens and Duane Reade stores to its platform.
Despite this competition, investor sentiment around DoorDash remains optimistic. The stock closed at $183.52, up 0.31% on the day and 7.5% year-to-date. Looking ahead, 34 Wall Street analysts polled by TipRanks forecast nearly 20% upside over the next 12 months, with a price target of $218.
Expand Energy (NASDAQ: EXE)
Expand Energy, one of the largest natural gas producers in the U.S., is also gaining investor attention, thanks to its recent S&P 500 inclusion, a strong Q1 2025 performance, and an ambitious growth strategy.
The company posted adjusted earnings per share of $2.02, beating estimates by $0.16, and reported $2.3 billion in revenue, exceeding forecasts by $57 million. With 92% of its Q1 production of 6.79 Bcfe/d coming from natural gas, EXE is focused on scaling up operations. It plans to raise its rig count to 15 and invest $2.7 billion to increase output to 7.2 Bcfe/d by year-end, with a target of 7.5 Bcfe/d by 2026.
Alongside production growth, Expand is working to improve operating efficiency. It targets synergy savings of $400 million in 2025 and $500 million in 2026.
Investor appeal is further enhanced by EXE’s capital discipline and shareholder return strategy, including a $1 billion share buyback program and a rising dividend.
The company’s inclusion in the S&P 500 adds credibility, but Wall Street interest runs deeper. For instance, UBS has maintained a ‘Buy’ rating on EXE with a $131 price target, citing it’s strong positioning amid rising natural gas prices.
Similarly, a consensus of 21 analysts on TipRanks projects the stock to reach $122 over the next 12 months, an upside of nearly 10% from its last closing price of $112.
In summary, the highlighted companies’ continued success will also depend on broader market momentum and overall investor sentiment.
Featured image via Shutterstock
