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Bull of the Day: Dave (DAVE)

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There have been several stocks that have doubled in short order following Election Day. The risk-on behavior the broad market has seen is beginning to call upon those animal spirits in all of us. The worry now for investors is, how long can these moves last? One stock that’s doubled up in short order is today’s Bull of the Day.

I’m talking about Zacks Rank #1 (Strong Buy) Dave ((DAVE - Free Report) ). Dave Inc., founded in 2015 and headquartered in Los Angeles, California, is a financial technology company offering a suite of services aimed at enhancing financial stability for its users. The company’s primary offerings help customers with budgeting, allow for advances on paychecks, and help with finding supplemental work opportunities. Additionally, Dave offers Dave Banking, a digital checking and demand deposit account.

Dave is in the Technology Services industry which ranks in the Top 26% of our Zacks Industry Rank. The reason for the favorable Zacks Rank is that several analysts on Wall Street have increased their earnings estimates for the company. Over the last month, analysts have upped the ante on both this year and next year. The bullish moves have pushed up our Zacks Consensus Estimates for the current year from $2.33 to $3.33 while next year’s move is up from $3.39 to $4.36.

Zacks Investment Research
Image Source: Zacks Investment Research

That means that current year EPS growth is forecast to come in at 181% over last year, while next year’s number is set to swell another 31%. That’s on revenue growth of 31% this year and 19% next year. That puts DAVE at a forward PE of 25.6x, nearly in-line with the broad market’s 24.95x.


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