DoorDash ( DASH
) has been in the Bullpen for a while now. It has had a very rough go of it in 2022. We do not see a catalyst here to bring the stock up to the portfolio so we will remove DASH from the Bullpen, re-examine the stock at a later date and perhaps bring it back then. For now, though, this group (DASH, Uber Technologies ( UBER
) and Lyft ( LYFT
) ) has been struggling, with the stocks down 50% or more.
The business models for this group may be strong but in a weaker economy these names could be at risk, so we will remove DASH at this time.
Meanwhile, Wendy's ( WEN
) has a very strong chart with solid fundamentals. It has a solid 2.6% dividend yield and trades at a trailing price/earnings rate of only 22x. We are adding it to the Bullpen here.
Wendy's stock has been on the move for a few months now, with higher highs and higher lows as it approaches some resistance. The 200-day moving average is a bit higher right now than current levels at $21, but that area could be a catalyst to push the stock higher. The current bull flag is constructive, while the Relative Strength Index (RSI) is also sloping higher at a nice, steep angle.
Keep an eye here on Wendy's, as we may consider bringing up the stock to the portfolio soon.