Dave Stock Has Doubled in the Past Year and Has Tantalizing Growth in Revenue, Earnings, and Cash Flow

Dave (DAVE) is rated a “Strong Buy” by 11 Wall Street analysts, driven by robust revenue, earnings, and cash flow growth. DAVE has surged 104% over the past year. The stock maintains a 100% “Buy” technical opinion from Barchart. Despite high short interest (19.38%) and Morningstar’s view of 35% overvaluation, I prioritize strong fundamentals and analyst consensus.

Today’s Featured Stock

Valued at $5.6 billion, Dave (DAVE) provides various financial products and services through its platform in the United States. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction, Weighted Alpha above 50+ and a 60-Month Beta over 1.5. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. DAVE checks those boxes. The Trend Seeker issued a new “Buy” signal on April 15. Since then, the stock has gained 91.92%.

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Barchart’s Technical Indicators for Dave

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Dave scored a 3-year high of $455.98 on July 16.

Dave has a Weighted Alpha of 122.89. DAVE has a 100% “Buy” opinion from Barchart. The stock has gained 104.01% over the past 52 weeks. Dave has its Trend Seeker “Buy” signal intact. The stock recently traded at $446.12 with a 50-day moving average of $310.66. DAVE has made 12 new highs and gained 41.50% over the past month. 60-month beta of 3.82. Relative Strength Index (RSI) is at 77.17. There’s a technical support level around $419.46.

Don’t Forget the Fundamentals

$5.6 billion market capitalization. 30.97x trailing price-earnings ratio. Revenue is projected to grow 29.03% this year and another 20.33% next year. Earnings are estimated to increase 25.96% this year and an additional 26.88% next year.

Analyst and Investor Sentiment on Dave

The Wall Street analysts followed by Barchart give the stock 11 “Strong Buy,” 1 “Moderate Buy” and 1 “Hold” opinion with price targets between $260 and $485. Value Line rates the stock “Average.” CFRA’s MarketScope rates the stock a “Buy.” Morningstar thinks the stock is 35% overvalued with a fair value of $326.21. 15,080 investors are following the stock on Seeking Alpha, which rates it a “Strong Buy.” Short interest is a high 19.38% of the float with 3.96 days to cover the float.

The Bottom Line on Dave

The company has had increases in revenue, earnings, and cash flow from operations for the last 3 years and analysts are predicting increases in both revenue and earnings this year and the next. However, short sellers are betting against the company and Morningstar thinks the stock is overvalued.

I’m sticking with the 11 Wall Street analysts who rate the stock a “Strong Buy” because I can’t ignore the very strong projections and past performance of my 3 key fundamentals: revenue, earnings, and cash flow. 

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

 

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