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Centrus Energy and Toll Brothers have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – January 8, 2026 – Zacks Equity Research shares Centrus Energy Corp. (LEU - Free Report) as the Bull of the Day and Toll Brothers, Inc. (TOL - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Dave Inc. (DAVE - Free Report) , LiveRamp (RAMP - Free Report) and Nable (NABL - Free Report) .
Centrus Energy Corp. is a U.S. uranium and nuclear fuel services standout that has soared over the last several years as Wall Street buys best-in-class AI energy stocks poised to be long-term winners within an investment megatrend that's still in its early innings.
Centrus Energy's surging earnings revisions land LEU a Zacks Rank #1 (Strong Buy). LEU is quickly becoming one of the critical cogs in the broader AI energy ecosystem and the U.S. nuclear energy revival.
AI hyperscalers, the U.S. government, and energy companies are aiming to help quadruple nuclear energy capacity over the next 25 years to support the massive power-hungry AI boom and broader electrification push.
Despite the nuclear fuel stock's 1,350% climb in the past five years, investors can buy Centrus Energy stock down 25% from its October highs and 95% below its 2007 peaks. The U.S. uranium industry standout also found support at key technical ranges to start 2026.
The nuclear fuel and services company offers massive upside as the U.S. races to revive the domestic uranium industry after decades of neglect, while also attempting to wean off Russia and the region that currently dominates the nuclear fuel industry.
Centrus Energy is a diversified supplier of nuclear fuel components and services for commercial nuclear power plants and beyond. It just landed a $900 million deal from the U.S. Department of Energy, expanding its growing relationship with the U.S. government.
LEU is also working with next-generation small modular nuclear reactor upstarts and other key nuclear energy companies.
Centrus Energy's bull case is straightforward, and both long-term investors and shorter-term traders should consider buying LEU to start 2026 since securing enough reliable, affordable power is one of the biggest hurdles facing the AI arms race. Wall Street is increasingly gravitating toward the AI energy trade because picking the technology winners is no easy task as AI evolves at light speed.
Buy Nuclear Fuel Stock LEU Now and Hold Forever
Uranium is the fuel that powers nuclear reactors. Centrus Energy is helping drive the next generation of centrifuge technologies and beyond to help restore domestic uranium enrichment capabilities.
The Bethesda, Maryland-headquartered company supplies low-enriched uranium (LEU - Free Report) and related nuclear fuel components to utilities operating nuclear power plants in the U.S. and globally.
It also provides advanced nuclear fuel-related engineering, manufacturing, and technical services, while pioneering the production of high-assay low-enriched uranium (HALEU) to support next-generation reactors.
Centrus is uniquely positioned as a first-mover in rebuilding U.S. uranium enrichment, benefiting from strong government support and insatiable demand for nuclear power expansion from AI hyperscalers.
Centrus Energy in 2023 inaugurated the first new U.S.-technology, U.S.-owned uranium enrichment plant to begin production since 1954.
Centrus Energy boasts that it's "pioneering production of High-Assay, Low-Enriched Uranium and is leading the effort to restore America's uranium enrichment capabilities at scale so that we can meet our clean energy, energy security, and national security needs."
The company is working with the U.S. DOE on low-enriched uranium and high-assay, low-enriched uranium. The current fleet of nuclear reactors runs on uranium fuel enriched up to 5%. Meanwhile, HALEU is enriched between 5% and 20% and is required for the next-gen small modular nuclear reactors.
LEU, which has provided its utility customers with more than 1,850 reactor years of fuel since 1998, announced on January 6 that it was selected by the DOE for a "$900 million task order to expand its uranium enrichment facility in Piketon, Ohio, to include commercial-scale production of High-Assay, Low-Enriched Uranium (HALEU)" and beyond.
Centrus Energy also said it's already secured "$2.3 billion in LEU purchase commitments from utilities contingent upon securing the necessary financing to build the new capacity." And it is working with SMR upstarts like Bill Gates-backed TerraPower and beyond.
The AI-Boosted Nuclear Energy and Uranium Bull Case
The AI age is projected to help drive a 25% increase in U.S. electricity demand by the end of the decade and 75% to 100% growth by 2050. Artificial intelligence marks a paradigm shift for energy demand because large AI data centers consume as much electricity as midsize cities.
Global AI data center infrastructure spending is expected to reach ~$7 trillion by 2030, with ~$1.3 trillion of this spending going toward power generation and the broader energy industry.
Nuclear energy is expected to power a large chunk of the AI age for a few simple reasons.
Nuclear power plants provide baseload power, operating at full capacity more than 93% of the time, making them the most reliable energy source, according to the DOE.
Nuclear was about 1.5X to 2X more reliable than natural gas and roughly 2.5X to 3.5X times more dependable than wind and solar. Plus, nuclear energy has already supplied about 50% of America's carbon-free electricity for decades.
The U.S. government is aiming to help quadruple nuclear energy capacity by 2050 to win the power-hungry AI arms race and slowly wean off fossil fuels. The AI hyperscalers from Microsoft to Meta have secured blockbuster, long-term power agreements with nuclear energy companies over the last few years.
Uranium is the fuel that powers nuclear reactors, and the U.S. uranium industry went nearly dormant for decades. That's why uranium demand is projected to outstrip supply as the U.S. races to expand nuclear energy almost overnight.
Centrus Energy is one of only a handful of uranium industry stocks that most regular U.S. retail investors can buy since the industry is dominated by Russia and its broader sphere of influence. Russia reportedly supplies around 14% of global uranium concentrates and 39% of enrichment, while Kazakhstan produces 43% of the world's uranium (for comparison, OPEC member countries produce about 40% of the world's crude oil).
The U.S. government is attempting to end its dependence on Russia and the region through the Prohibiting Russian Imports Act and other efforts. This is part of a broader reshoring push across the most essential aspects of the U.S. economy.
The U.S. government's newfound support for nuclear energy and the domestic uranium/nuclear fuel industry creates a massive, multi-decade tailwind for Centrus Energy and other U.S. players such as Energy Fuels UUUU.
AI Energy Stock LEU is Ready to Soar Again in 2026
Wall Street doesn't care that much about LEU's top and bottom-line growth just yet, as long as Centrus Energy continues to boost its outlook and gain traction in the increasingly critical domestic uranium market.
That said, the company is projected to grow its revenue by nearly 2% in 2025 and 10% in 2026. This growth outlook comes on top of its 38% sales expansion in 2024 and 9% in 2023.
Plus, LEU's earnings revisions have surged over the last few months, with its 2026 estimate up 10%. Its Most Accurate EPS estimates also came in solidly above consensus for FY25 and FY26, and 40% higher for the fourth quarter of 2025.
Centrus Energy's upbeat earnings revisions earn it a Zacks Rank #1 (Strong Buy).
LEU stock has skyrocketed 1,350% in the past five years to blow away Energy Fuels and Canadian uranium mining powerhouse Cameco CCJ. This is part of a far larger run in the past decade.
Yet, investors can buy Centrus Energy stock down roughly 25% from its mid-October peaks. On a much longer-term timescale, LEU is trading almost 95% below its all-time 2007 highs.
The stock overtook its 50-day moving average to start 2026. LEU also recently found support at its extremely long-term 200-month moving average. This backdrop could mean Centrus Energy is ready to soar again in 2026 as Wall Street clamors to buy the stocks that are set fuel the power-hungry AI age.
Toll Brothers, Inc. is one of the top luxury homebuilders in the country. TOL provided downbeat earnings guidance when it posted its fourth quarter 2025 earnings results on December 8, as it faces "soft demand across many markets" and other setbacks that are hitting the entire homebuilding and housing market.
Toll Brothers' recent downward earnings revisions trend earns the luxury homebuilder stock a Zacks Rank #5 (Strong Sell).
Stay Away from Toll Brothers Stock Right Now?
Toll Brothers is a diversified luxury homebuilder that operates its own architectural, engineering, mortgage, title, and land development subsidiaries, as well as other offerings.
TOL also runs its own lumber distribution, house component assembly, and manufacturing segments that help it build houses across 24 states and 60 markets from Arizona and California to New York and North Carolina.
Despite being in the luxury home market, Toll Brothers caters to nearly every aspect of the market, including first-time, move-up, empty-nester, active-adult, and second-home buyers. TOL posted revenue growth in FY24 and FY25 even after the huge Covid-driven pull forward across the housing market.
That said, it offered downbeat 2026 guidance in early December as numerous factors put pressure on margins and profits.
Toll Brothers is projected to see its revenue fall -4.2% YoY in FY26 and its earnings drop -6.5%. TOL's consensus earnings estimates have dropped by over -10% for FY26 and FY27 since its Q4 release.
These downward revisions earn TOL stock a Zacks Rank #5 (Strong Sell) right now. On top of that, its Building Products-Home Builders industry sits in the bottom 3% of nearly 250 Zacks industries. This puts added pressure on TOL stock since studies have shown that roughly half of a stock's price movement can be attributed to a stock's industry group.
The entire housing and homebuilding industry is suffering from higher mortgage rates, higher home prices, and beyond. That said, Toll Brothers and the broader industry offer long-term upside since the U.S. is in desperate need of more housing supply.
Plus, TOL's Q4 and full-year results showed that its "luxury business is differentiated, as we serve a more affluent customer who is less impacted by affordability pressures," according to its CEO.
Still, investors might want to stay away from Toll Brothers until its earnings revisions start to trend in the right direction again.
Additional content:
DAVE Stock Skyrockets +174% in a Year: Will the Rally Continue?
Dave Inc.'s shares displayed notable growth in a year. It has surged 173.5%, surpassing the industry's 17.8% growth and the 20.3% rise in the Zacks S&P 500 Composite.
DAVE has outperformed its industry peers, LiveRamp's 6.3% dip and Nable' 22.9% decline.
1-Year Share Price Performance
Recent performance shows that Dave shares have surpassed LiveRamp and Nable. While DAVE has gained 15.2% in a month, LiveRamp and Nable have lost 2.6% and 3.9%, respectively.
Let us analyze further to find out whether DAVE can continue this growth trajectory, ensuring robust returns to its investors.
CashAI & Fee Model Drive Dave's Customer Growth
In the third quarter of 2025, the company added 843,000 members, bringing the total to 13.5 million, up 17% year over year. This growth was driven primarily by a 25% year-over-year increase in Dave Card spend. Despite this sharp rise in customer count, the company kept the customer acquisition cost (CAC) flat at $19 compared with the preceding quarter. ExtraCash origination soared 49% year over year, highlighting the company's success in marketing campaigns.
CashAI v5.5 is a crucial driver for Dave's customer acquisition as it made a significant contribution toward the 20% rise in average ExtraCash size. Despite the lofty ExtraCash originations growth, the company managed to maintain high credit quality on the back of CashAI v5.5. This AI and machine learning based model was not only able to attract customers but also ensured higher retention and conversion.
Dave's new fee model is a prominent growth factor. Its new fee model consists of a flat 15% fee on all ExtraCash transactions, with a minimum of a $5 fee and a $15 cap. What made this fee model effective in attracting more customers is that it is simpler than that of the legacy banks. The model is not only easier for customers to grasp but also cheaper for the underserved demography to secure credit, enhancing customer retention.
Dave: A Cheap Stock with Strong Capital Return & Liquidity
DAVE trades at 16.56 times forward 12-month EPS, below the industry average of 26.11 times. Value-oriented investors will find this appealing and might secure significant returns as the market realizes the stock's real value.
Dave's return on equity (ROE) is significantly higher than the industry average. Currently, its ROE is 77.8%, while the industry average is 15.3%. In terms of return on capital invested (ROIC), Dave's 48.8% ROIC beats the industry average of 7.7%. These metrics demonstrate strength on the profitability front, suggesting that DAVE's ability to generate shareholder returns is efficient.
On the liquidity front, DAVE's current ratio of 8.7 in the third quarter of 2025 has improved from the year-ago quarter's 6.81, exceeding the industry average of 1.58. As the current ratio exceeds 1, it highlights DAVE's effective coverage of short-term obligations.
Dave's Top & Bottom-Line Prospects Appear Strong
The Zacks Consensus Estimate for the company's 2025 revenues is pinned at $546.1 million, suggesting a 57.3% rise from the prior-year reported level. For 2026, the same is anticipated to increase 20.2%.
The consensus estimate for 2025 earnings per share is pegged at $12.96, indicating a 147.3% upsurge from the year-ago quarter's actual. For 2026, the metric is expected to rise 8%.
Add DAVE to Your Portfolio
Dave's CashAI v5.5 and new fee model are instrumental to its customer acquisition strategy. Its ability to scale is evident in its third-quarter 2025 results, which witnessed total membership soaring to 13.5 million, while ensuring CAC is stable. DAVE's efficiency is highly impressive as its ROE and ROIC beat the industry average by a significant margin. Furthermore, the company maintains a strong liquidity position.
We recommend investors buy this fundamentally strong stock now that trades at a discount to the industry. Undervaluation and solid financial prospects present a high-growth potential, attracting value-oriented investors.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Centrus Energy and Toll Brothers have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – January 8, 2026 – Zacks Equity Research shares Centrus Energy Corp. (LEU - Free Report) as the Bull of the Day and Toll Brothers, Inc. (TOL - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Dave Inc. (DAVE - Free Report) , LiveRamp (RAMP - Free Report) and Nable (NABL - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Centrus Energy Corp. is a U.S. uranium and nuclear fuel services standout that has soared over the last several years as Wall Street buys best-in-class AI energy stocks poised to be long-term winners within an investment megatrend that's still in its early innings.
Centrus Energy's surging earnings revisions land LEU a Zacks Rank #1 (Strong Buy). LEU is quickly becoming one of the critical cogs in the broader AI energy ecosystem and the U.S. nuclear energy revival.
AI hyperscalers, the U.S. government, and energy companies are aiming to help quadruple nuclear energy capacity over the next 25 years to support the massive power-hungry AI boom and broader electrification push.
Despite the nuclear fuel stock's 1,350% climb in the past five years, investors can buy Centrus Energy stock down 25% from its October highs and 95% below its 2007 peaks. The U.S. uranium industry standout also found support at key technical ranges to start 2026.
The nuclear fuel and services company offers massive upside as the U.S. races to revive the domestic uranium industry after decades of neglect, while also attempting to wean off Russia and the region that currently dominates the nuclear fuel industry.
Centrus Energy is a diversified supplier of nuclear fuel components and services for commercial nuclear power plants and beyond. It just landed a $900 million deal from the U.S. Department of Energy, expanding its growing relationship with the U.S. government.
LEU is also working with next-generation small modular nuclear reactor upstarts and other key nuclear energy companies.
Centrus Energy's bull case is straightforward, and both long-term investors and shorter-term traders should consider buying LEU to start 2026 since securing enough reliable, affordable power is one of the biggest hurdles facing the AI arms race. Wall Street is increasingly gravitating toward the AI energy trade because picking the technology winners is no easy task as AI evolves at light speed.
Buy Nuclear Fuel Stock LEU Now and Hold Forever
Uranium is the fuel that powers nuclear reactors. Centrus Energy is helping drive the next generation of centrifuge technologies and beyond to help restore domestic uranium enrichment capabilities.
The Bethesda, Maryland-headquartered company supplies low-enriched uranium (LEU - Free Report) and related nuclear fuel components to utilities operating nuclear power plants in the U.S. and globally.
It also provides advanced nuclear fuel-related engineering, manufacturing, and technical services, while pioneering the production of high-assay low-enriched uranium (HALEU) to support next-generation reactors.
Centrus is uniquely positioned as a first-mover in rebuilding U.S. uranium enrichment, benefiting from strong government support and insatiable demand for nuclear power expansion from AI hyperscalers.
Centrus Energy in 2023 inaugurated the first new U.S.-technology, U.S.-owned uranium enrichment plant to begin production since 1954.
Centrus Energy boasts that it's "pioneering production of High-Assay, Low-Enriched Uranium and is leading the effort to restore America's uranium enrichment capabilities at scale so that we can meet our clean energy, energy security, and national security needs."
The company is working with the U.S. DOE on low-enriched uranium and high-assay, low-enriched uranium. The current fleet of nuclear reactors runs on uranium fuel enriched up to 5%. Meanwhile, HALEU is enriched between 5% and 20% and is required for the next-gen small modular nuclear reactors.
LEU, which has provided its utility customers with more than 1,850 reactor years of fuel since 1998, announced on January 6 that it was selected by the DOE for a "$900 million task order to expand its uranium enrichment facility in Piketon, Ohio, to include commercial-scale production of High-Assay, Low-Enriched Uranium (HALEU)" and beyond.
Centrus Energy also said it's already secured "$2.3 billion in LEU purchase commitments from utilities contingent upon securing the necessary financing to build the new capacity." And it is working with SMR upstarts like Bill Gates-backed TerraPower and beyond.
The AI-Boosted Nuclear Energy and Uranium Bull Case
The AI age is projected to help drive a 25% increase in U.S. electricity demand by the end of the decade and 75% to 100% growth by 2050. Artificial intelligence marks a paradigm shift for energy demand because large AI data centers consume as much electricity as midsize cities.
Global AI data center infrastructure spending is expected to reach ~$7 trillion by 2030, with ~$1.3 trillion of this spending going toward power generation and the broader energy industry.
Nuclear energy is expected to power a large chunk of the AI age for a few simple reasons.
Nuclear power plants provide baseload power, operating at full capacity more than 93% of the time, making them the most reliable energy source, according to the DOE.
Nuclear was about 1.5X to 2X more reliable than natural gas and roughly 2.5X to 3.5X times more dependable than wind and solar. Plus, nuclear energy has already supplied about 50% of America's carbon-free electricity for decades.
The U.S. government is aiming to help quadruple nuclear energy capacity by 2050 to win the power-hungry AI arms race and slowly wean off fossil fuels. The AI hyperscalers from Microsoft to Meta have secured blockbuster, long-term power agreements with nuclear energy companies over the last few years.
Uranium is the fuel that powers nuclear reactors, and the U.S. uranium industry went nearly dormant for decades. That's why uranium demand is projected to outstrip supply as the U.S. races to expand nuclear energy almost overnight.
Centrus Energy is one of only a handful of uranium industry stocks that most regular U.S. retail investors can buy since the industry is dominated by Russia and its broader sphere of influence. Russia reportedly supplies around 14% of global uranium concentrates and 39% of enrichment, while Kazakhstan produces 43% of the world's uranium (for comparison, OPEC member countries produce about 40% of the world's crude oil).
The U.S. government is attempting to end its dependence on Russia and the region through the Prohibiting Russian Imports Act and other efforts. This is part of a broader reshoring push across the most essential aspects of the U.S. economy.
The U.S. government's newfound support for nuclear energy and the domestic uranium/nuclear fuel industry creates a massive, multi-decade tailwind for Centrus Energy and other U.S. players such as Energy Fuels UUUU.
AI Energy Stock LEU is Ready to Soar Again in 2026
Wall Street doesn't care that much about LEU's top and bottom-line growth just yet, as long as Centrus Energy continues to boost its outlook and gain traction in the increasingly critical domestic uranium market.
That said, the company is projected to grow its revenue by nearly 2% in 2025 and 10% in 2026. This growth outlook comes on top of its 38% sales expansion in 2024 and 9% in 2023.
Plus, LEU's earnings revisions have surged over the last few months, with its 2026 estimate up 10%. Its Most Accurate EPS estimates also came in solidly above consensus for FY25 and FY26, and 40% higher for the fourth quarter of 2025.
Centrus Energy's upbeat earnings revisions earn it a Zacks Rank #1 (Strong Buy).
LEU stock has skyrocketed 1,350% in the past five years to blow away Energy Fuels and Canadian uranium mining powerhouse Cameco CCJ. This is part of a far larger run in the past decade.
Yet, investors can buy Centrus Energy stock down roughly 25% from its mid-October peaks. On a much longer-term timescale, LEU is trading almost 95% below its all-time 2007 highs.
The stock overtook its 50-day moving average to start 2026. LEU also recently found support at its extremely long-term 200-month moving average. This backdrop could mean Centrus Energy is ready to soar again in 2026 as Wall Street clamors to buy the stocks that are set fuel the power-hungry AI age.
Bear of the Day:
Toll Brothers, Inc. is one of the top luxury homebuilders in the country. TOL provided downbeat earnings guidance when it posted its fourth quarter 2025 earnings results on December 8, as it faces "soft demand across many markets" and other setbacks that are hitting the entire homebuilding and housing market.
Toll Brothers' recent downward earnings revisions trend earns the luxury homebuilder stock a Zacks Rank #5 (Strong Sell).
Stay Away from Toll Brothers Stock Right Now?
Toll Brothers is a diversified luxury homebuilder that operates its own architectural, engineering, mortgage, title, and land development subsidiaries, as well as other offerings.
TOL also runs its own lumber distribution, house component assembly, and manufacturing segments that help it build houses across 24 states and 60 markets from Arizona and California to New York and North Carolina.
Despite being in the luxury home market, Toll Brothers caters to nearly every aspect of the market, including first-time, move-up, empty-nester, active-adult, and second-home buyers. TOL posted revenue growth in FY24 and FY25 even after the huge Covid-driven pull forward across the housing market.
That said, it offered downbeat 2026 guidance in early December as numerous factors put pressure on margins and profits.
Toll Brothers is projected to see its revenue fall -4.2% YoY in FY26 and its earnings drop -6.5%. TOL's consensus earnings estimates have dropped by over -10% for FY26 and FY27 since its Q4 release.
These downward revisions earn TOL stock a Zacks Rank #5 (Strong Sell) right now. On top of that, its Building Products-Home Builders industry sits in the bottom 3% of nearly 250 Zacks industries. This puts added pressure on TOL stock since studies have shown that roughly half of a stock's price movement can be attributed to a stock's industry group.
The entire housing and homebuilding industry is suffering from higher mortgage rates, higher home prices, and beyond. That said, Toll Brothers and the broader industry offer long-term upside since the U.S. is in desperate need of more housing supply.
Plus, TOL's Q4 and full-year results showed that its "luxury business is differentiated, as we serve a more affluent customer who is less impacted by affordability pressures," according to its CEO.
Still, investors might want to stay away from Toll Brothers until its earnings revisions start to trend in the right direction again.
Additional content:
DAVE Stock Skyrockets +174% in a Year: Will the Rally Continue?
Dave Inc.'s shares displayed notable growth in a year. It has surged 173.5%, surpassing the industry's 17.8% growth and the 20.3% rise in the Zacks S&P 500 Composite.
DAVE has outperformed its industry peers, LiveRamp's 6.3% dip and Nable' 22.9% decline.
1-Year Share Price Performance
Recent performance shows that Dave shares have surpassed LiveRamp and Nable. While DAVE has gained 15.2% in a month, LiveRamp and Nable have lost 2.6% and 3.9%, respectively.
Let us analyze further to find out whether DAVE can continue this growth trajectory, ensuring robust returns to its investors.
CashAI & Fee Model Drive Dave's Customer Growth
In the third quarter of 2025, the company added 843,000 members, bringing the total to 13.5 million, up 17% year over year. This growth was driven primarily by a 25% year-over-year increase in Dave Card spend. Despite this sharp rise in customer count, the company kept the customer acquisition cost (CAC) flat at $19 compared with the preceding quarter. ExtraCash origination soared 49% year over year, highlighting the company's success in marketing campaigns.
CashAI v5.5 is a crucial driver for Dave's customer acquisition as it made a significant contribution toward the 20% rise in average ExtraCash size. Despite the lofty ExtraCash originations growth, the company managed to maintain high credit quality on the back of CashAI v5.5. This AI and machine learning based model was not only able to attract customers but also ensured higher retention and conversion.
Dave's new fee model is a prominent growth factor. Its new fee model consists of a flat 15% fee on all ExtraCash transactions, with a minimum of a $5 fee and a $15 cap. What made this fee model effective in attracting more customers is that it is simpler than that of the legacy banks. The model is not only easier for customers to grasp but also cheaper for the underserved demography to secure credit, enhancing customer retention.
Dave: A Cheap Stock with Strong Capital Return & Liquidity
DAVE trades at 16.56 times forward 12-month EPS, below the industry average of 26.11 times. Value-oriented investors will find this appealing and might secure significant returns as the market realizes the stock's real value.
Dave's return on equity (ROE) is significantly higher than the industry average. Currently, its ROE is 77.8%, while the industry average is 15.3%. In terms of return on capital invested (ROIC), Dave's 48.8% ROIC beats the industry average of 7.7%. These metrics demonstrate strength on the profitability front, suggesting that DAVE's ability to generate shareholder returns is efficient.
On the liquidity front, DAVE's current ratio of 8.7 in the third quarter of 2025 has improved from the year-ago quarter's 6.81, exceeding the industry average of 1.58. As the current ratio exceeds 1, it highlights DAVE's effective coverage of short-term obligations.
Dave's Top & Bottom-Line Prospects Appear Strong
The Zacks Consensus Estimate for the company's 2025 revenues is pinned at $546.1 million, suggesting a 57.3% rise from the prior-year reported level. For 2026, the same is anticipated to increase 20.2%.
The consensus estimate for 2025 earnings per share is pegged at $12.96, indicating a 147.3% upsurge from the year-ago quarter's actual. For 2026, the metric is expected to rise 8%.
Add DAVE to Your Portfolio
Dave's CashAI v5.5 and new fee model are instrumental to its customer acquisition strategy. Its ability to scale is evident in its third-quarter 2025 results, which witnessed total membership soaring to 13.5 million, while ensuring CAC is stable. DAVE's efficiency is highly impressive as its ROE and ROIC beat the industry average by a significant margin. Furthermore, the company maintains a strong liquidity position.
We recommend investors buy this fundamentally strong stock now that trades at a discount to the industry. Undervaluation and solid financial prospects present a high-growth potential, attracting value-oriented investors.
DAVE sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.