Food delivery stocks are all the rage right now. Why? Well, unless you’ve been living under a rock, you know that the world of food service has changed dramatically since 2020. So, what does that mean for your trading or investing plan? Shouldn’t they change too with the times?
Now, most sectors are fairly uncertain about what is on the horizon. Except for one, and that’s the food delivery business. This is why you will want to pay attention to the list of stocks that are in the right place, at the right time, to take up the most market share in this space.
Chart by TradingView
Table of Contents
Food Delivery Stocks List
- Food delivery stocks moving during the CODVID-19 pandemic:
- $WTRH
- $UBER
- $APRN
- $HELFFF
- Instacart 2021 IPO *(not out yet but very hyped)
- $GRUB
Instead of collapsing like almost every other stock, food delivery stocks have bucked the broader market trend.
Moreover, not only have they fought back, but they’ve also rallied! Am I shocked? Since people still need to eat, restaurants are closed, and no one can leave the house, I’m not.
Ultimately, we’re left with few options, one of which is to order in. And ordering in they are. CEOs from food delivery companies like Waitr, Uber Eats, Postmates, Doordash, etc, indicate demand has skyrocketed over the past few weeks.
Take our online trading courses to learn how to trade food delivery stocks. Just look at these two food delivery stocks which have exploded higher in 2020 amid the coronavirus panic:
- Waitr (NASDAQ: WTRH)
- HelloFresh (OTCMKTS: HLFFF)
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1. Waitr (WTRH)
Founded in 2013, Waitr is a leader in the on-demand food ordering and delivery arena. Recently, Waitr acquired food delivery company Bite Squad, which connects local restaurants to diners in under-served U.S. markets.
They are easy to discover, order, and receive great food from local restaurants and national chains.
As of December 31, 2019, Waitr and Bite Squad operated in small and medium-sized markets in the United States in approximately 640 cities.
If food delivery stocks are skyrocketing, we’ll discuss the moves in our live trading room.
Scalping WTRH Stock
$WTRH had a nice setup on the 15-minute chart using the algos and block trade levels (pink) to trade a long trade on a block trade breakout. Read about the FlowTrade charting platform.
Up a jaw-dropping 816.6% in 2020, food delivery platform Waitr is not just the hottest food delivery stock out there but also one of the hottest stocks in the market.
With volatility numbers that would salivate any day trader, you’ll want to put this gem on your watch list.
If you look at the market share numbers for the food delivery market, you’ll see that this industry is dominated by Uber Eats, Postmates, Doordash, and GrubHub (NYSE: GRUB).
Collectively, those four platforms own 98% of the U.S. food delivery market. Moreover, Waitr is fighting for the 2% leftover scraps in the market.
To make matters worse, the company operates at a dismal 23% gross margin. And with just $29 million in cash on the balance sheet, against over $130 million in debt, they aren’t in a good spot.
To avoid insolvency, Waitr needs to acquire many new customers. On no uncertain terms, that’s a tall order.
With this in mind, I’m not sure Waitr can do it, even with coronavirus tailwinds, in an intensely competitive market. Stock trading is all about knowing when to trade and sell out.
$GRUB report via StockRover – the best place to review a stocks fundamentals.
2. HelloFresh (HLFFF)
Year-to-date gain: 190%
Hello, gains!
Like fellow meal-kit maker Blue Apron, HelloFresh is a big and growing player in this market. From 2016 to 2019, HelloFresh has seen its share price grow from 12% to 26%.
Once again, I would try to scalp HelloFresh, just like Waitr. Considering COVID-19 likely isn’t going anywhere soon, its volatility should continue along with your profits with time.
The monthly chart of $HLFFF is trending above the 9EMA, which is considered a high momentum stock; as you can see on the right-hand side of the chart, we have high volume in the lower levels and less near the top. Read up on TrendSpider to learn more about this charting platform.
Are Meal Kits Safe?
Understandably, many may be nervous about handling packages, but you shouldn’t be afraid. According to the CDC:
But, even though the virus can survive for up to 24 hours on cardboard, the likelihood is low. Just make sure to wash your hands thoroughly after handling any packages. Good hygiene is important right now, but there is not much reason to be afraid to order food from somewhere. Just be smart about it.
Final Thoughts: Food Delivery Stocks
Right now, the market is volatile, which is good for day traders. For many, volatility is their bread and butter. And when used in conjunction with technical indicators, you can find ideal entry and exit points. We will show you how.
Take your bite out of the food delivery market and capitalize on this once-in-a-lifetime opportunity; join our trading service now.
