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Reasons to Retain Green Dot (GDOT) Stock in Your Portfolio
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Green Dot Corporation (GDOT - Free Report) has performed extremely well so far this year, and we believe it has potential to sustain the momentum going forward. Shares have gained a whopping 164% in the said time frame against 3.6% rally of the industry it belongs to.
Factors That Bode Well
Both top and bottom lines are benefiting from a modern and scalable technology platform, millions of customers and more than 100,000 points of retail distribution with a strong cash-deposit network.
Green Dot's cash and cash equivalent balance of $1.94 billion at the end of the second-quarter 2020 was well above the debt level of just $29 million. A strong cash position gives it more flexibility to pursue strategic acquisitions and invest in growth initiatives.
The company’s Banking as a Service (BaaS) platform programs are contributing significantly to gross dollar volume and revenue growth. A robust BaaS platform-based partner business has helped it secure multi-year agreements with some of the world’s largest companies like Apple (AAPL - Free Report) , Walmart (WMT - Free Report) , Intuit (INTU - Free Report) and Uber.
Some Risks
Green Dot is seeing an increase in expenses as it continues to invest in sales, marketing and product development. In second-quarter 2020, the company’s total operating expenses of $310.9 million increased 32.6% year over year. These expenses rose 5.4% in 2019.
Green Dot has never declared and currently does not have any plan to pay cash dividends on common stock. The Federal Reserve Board’s risk-based and leverage capital requirements, and other federal laws restricts the company’s ability to pay cash dividends. Thus, investors seeking cash dividends should avoid buying Green Dot’s shares.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Reasons to Retain Green Dot (GDOT) Stock in Your Portfolio
Green Dot Corporation (GDOT - Free Report) has performed extremely well so far this year, and we believe it has potential to sustain the momentum going forward. Shares have gained a whopping 164% in the said time frame against 3.6% rally of the industry it belongs to.
Factors That Bode Well
Both top and bottom lines are benefiting from a modern and scalable technology platform, millions of customers and more than 100,000 points of retail distribution with a strong cash-deposit network.
Green Dot's cash and cash equivalent balance of $1.94 billion at the end of the second-quarter 2020 was well above the debt level of just $29 million. A strong cash position gives it more flexibility to pursue strategic acquisitions and invest in growth initiatives.
The company’s Banking as a Service (BaaS) platform programs are contributing significantly to gross dollar volume and revenue growth. A robust BaaS platform-based partner business has helped it secure multi-year agreements with some of the world’s largest companies like Apple (AAPL - Free Report) , Walmart (WMT - Free Report) , Intuit (INTU - Free Report) and Uber.
Some Risks
Green Dot is seeing an increase in expenses as it continues to invest in sales, marketing and product development. In second-quarter 2020, the company’s total operating expenses of $310.9 million increased 32.6% year over year. These expenses rose 5.4% in 2019.
Green Dot has never declared and currently does not have any plan to pay cash dividends on common stock. The Federal Reserve Board’s risk-based and leverage capital requirements, and other federal laws restricts the company’s ability to pay cash dividends. Thus, investors seeking cash dividends should avoid buying Green Dot’s shares.
Green Dot currently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>