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Here's Why You Should Hold on to Green Dot (GDOT) Stock For Now
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Green Dot Corporation (GDOT - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.
The company’s earnings for 2022 and 2023 are expected to grow at a rate of 12.2% and 19.6%, respectively, on a year-over-year basis.
Factors That Auger Well
Green Dot remains focused on ensuring long-term growth of its businesses. The company’s efforts are toward the acquisition of long-term users of its products, improving brands and image, building market adoption and awareness of products, increasing card usage, and customer retention. Its sales and marketing efforts remain focused on a broad group, ranging from never-banked to fully-banked consumers.
Green Dot’s long-standing relationship with Walmart remains a key driver of its operating revenues. The company’s operating revenues derived from products and services offered through Walmart represented 27%, 34% and 36% of total operating revenues for 2020, 2019 and 2018, respectively.
Green Dot is expanding its addressable market with the help of its banking-as-a-service (BaaS) account programs. The company partners with some top consumer and technology companies including Amazon and Apple to design and develop their fintech banking solutions through its BaaS platform. These solutions are then made available by these companies to their consumers and partners again through integration with the BaaS program, eventually expanding Green Dot’s spectrum of consumers.
Some Risks
Green Dot's current ratio at the end of March quarter was pegged at 0.49, lower than the current ratio of 0.50 reported at the end of the December quarter and the prior-year quarter’s 0.82. Decreasing current ratio is not desirable, as it indicates that the company may have problems meeting its short-term debt obligations.
Green Dot's shares have lost 45% over the past year compared with 32.3% loss of the industry it belongs to.
Image: Bigstock
Here's Why You Should Hold on to Green Dot (GDOT) Stock For Now
Green Dot Corporation (GDOT - Free Report) has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.
The company’s earnings for 2022 and 2023 are expected to grow at a rate of 12.2% and 19.6%, respectively, on a year-over-year basis.
Factors That Auger Well
Green Dot remains focused on ensuring long-term growth of its businesses. The company’s efforts are toward the acquisition of long-term users of its products, improving brands and image, building market adoption and awareness of products, increasing card usage, and customer retention. Its sales and marketing efforts remain focused on a broad group, ranging from never-banked to fully-banked consumers.
Green Dot’s long-standing relationship with Walmart remains a key driver of its operating revenues. The company’s operating revenues derived from products and services offered through Walmart represented 27%, 34% and 36% of total operating revenues for 2020, 2019 and 2018, respectively.
Green Dot is expanding its addressable market with the help of its banking-as-a-service (BaaS) account programs. The company partners with some top consumer and technology companies including Amazon and Apple to design and develop their fintech banking solutions through its BaaS platform. These solutions are then made available by these companies to their consumers and partners again through integration with the BaaS program, eventually expanding Green Dot’s spectrum of consumers.
Some Risks
Green Dot's current ratio at the end of March quarter was pegged at 0.49, lower than the current ratio of 0.50 reported at the end of the December quarter and the prior-year quarter’s 0.82. Decreasing current ratio is not desirable, as it indicates that the company may have problems meeting its short-term debt obligations.
Green Dot's shares have lost 45% over the past year compared with 32.3% loss of the industry it belongs to.
Green Dot Corporation Price
Green Dot Corporation price | Green Dot Corporation Quote
Zacks Rank and Stocks to Consider
Green Dot currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Avis Budget sports a Zacks Rank #1 (Strong Buy) at present. CAR has a long-term earnings growth expectation of 19.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Avis Budget delivered a trailing four-quarter earnings surprise of 102%, on average.
Genpact carries a Zacks Rank of 2 (Buy) at present. G has a long-term earnings growth expectation of 12.3%.
Genpact delivered a trailing four-quarter earnings surprise of 13.3%, on average.
CRA International carries a Zacks Rank #2, currently. CRAI has a long-term earnings growth expectation of 14.3%.
CRAI delivered a trailing four-quarter earnings surprise of 35.8%, on average.