DAVE INC (NASDAQ:DAVE) – A Strong Growth Candidate for Little Book Investors

DAVE INC (NASDAQ:DAVE) stands out as a compelling pick for investors following Louis Navellier’s growth strategy outlined in The Little Book That Makes You Rich. The company’s financials align closely with Navellier’s eight key growth criteria, particularly in earnings momentum, sales expansion, and profitability improvements. Below, we examine why DAVE fits this strategy.

Key Strengths Supporting Growth

• Earnings Revisions & Surprises: Analysts have raised next-quarter EPS estimates by 142.25% over the last three months. DAVE has also delivered four consecutive positive earnings surprises, averaging a 197.89% beat.
• Sales & Earnings Growth: Revenue grew 39.31% year-over-year, while quarterly sales surged 46.74%. EPS growth is even more striking, with a 266.51% annual increase and a staggering 1,541.67% jump quarter-over-quarter.
• Operating Efficiency: Operating margin expanded by 289.98% in the past year, reflecting improved cost management alongside revenue gains.
• Cash Flow Strength: Free cash flow grew 399.35% year-over-year, indicating strong liquidity to support further growth.
• High Return on Equity: At 26.29%, ROE outperforms 86.54% of peers in the consumer finance industry.

Valuation & Risks

While growth metrics are robust, DAVE trades at a premium with a P/E of 54.78, above industry averages. However, its PEG ratio suggests growth may justify the valuation. Investors should monitor whether earnings momentum sustains.

For a deeper dive, review the full fundamental analysis of DAVE.

Our Little Book Growth screener provides more stocks matching these criteria, updated regularly.

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.