Green Dot Corporation (GDOT - Free Report) is benefiting from a healthy topline, improved operations in fraud and customer care and diligent cost handling. But without a dividend declaration, investors seeking cash dividends will be less interested in picking this stock.
The company has an impressive earning surprise history, beating the Zacks Consensus Estimate of earnings in all four trailing quarters, at an average surprise of 36%.
Factors in Favour
GDOT eyes long-term growth banking on improved cost structure, expansion of technology platforms and new customer acquisitions. Operating expenses of $334.4 million decreased 1.3% on a year-over-year basis in fourth-quarter 2022.GDOT completed its first platform conversion in the fourth quarter which can be considered a boosting technology transformation.
Once the transformation is complete, the company’s margin expects to see an uptick due to lower processing expenses. The company is continuing its efforts to reduce fraud losses by investing in an anti-money laundering program.
GDOT has been in a continuous pursuit to increase its addressable market with its Banking as a service program. The company’s partnership with Amazon, Apple and Uber among others is boosting the performance of the platform. The B2B service segment grew 30% year over year in 2022, positively impacted by higher program management services earned from BaaS partners. In the reported year the company generated 30% of the operating revenue from a single BaaS partner.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Green Dot Corporation (GDOT - Free Report) is benefiting from a healthy topline, improved operations in fraud and customer care and diligent cost handling. But without a dividend declaration, investors seeking cash dividends will be less interested in picking this stock.
The company has an impressive earning surprise history, beating the Zacks Consensus Estimate of earnings in all four trailing quarters, at an average surprise of 36%.
Factors in Favour
GDOT eyes long-term growth banking on improved cost structure, expansion of technology platforms and new customer acquisitions. Operating expenses of $334.4 million decreased 1.3% on a year-over-year basis in fourth-quarter 2022.GDOT completed its first platform conversion in the fourth quarter which can be considered a boosting technology transformation.
Once the transformation is complete, the company’s margin expects to see an uptick due to lower processing expenses. The company is continuing its efforts to reduce fraud losses by investing in an anti-money laundering program.
GDOT has been in a continuous pursuit to increase its addressable market with its Banking as a service program. The company’s partnership with Amazon, Apple and Uber among others is boosting the performance of the platform. The B2B service segment grew 30% year over year in 2022, positively impacted by higher program management services earned from BaaS partners. In the reported year the company generated 30% of the operating revenue from a single BaaS partner.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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