DAVE INC (NASDAQ:DAVE) – A Strong Contender for Growth Investors

DAVE INC (NASDAQ:DAVE) stands out as a potential candidate for investors following Louis Navellier’s growth-focused strategy. The company, a digital banking service provider, meets several key criteria outlined in Navellier’s "The Little Book That Makes You Rich," including strong earnings revisions, accelerating sales, and high return on equity. Below, we examine why DAVE fits this approach.

Key Strengths of DAVE

• Earnings Revisions & Surprises: Analysts have raised EPS estimates for the next quarter by 181.13% in the last three months. Additionally, DAVE has beaten EPS expectations in all of the last four quarters, with an average surprise of 197.89%.
• Revenue & Earnings Growth: Year-over-year revenue growth sits at 39.31%, while quarterly sales surged 46.74%. EPS growth is even more impressive, with a 266.51% increase over the past year and a staggering 1,541.67% jump quarter-over-quarter.
• Expanding Profitability: Operating margins improved by 289.98% in the past year, indicating efficient cost management alongside revenue growth.
• Strong Cash Flow: Free cash flow grew by 399.35% year-over-year, reinforcing financial flexibility.
• High Return on Equity (ROE): At 26.29%, DAVE’s ROE is well above the industry average, showing effective use of shareholder capital.

Fundamental Overview

DAVE holds a solid fundamental rating of 6/10, with strengths in growth and financial health. While profitability metrics are improving, the stock trades at a premium valuation, with a P/E ratio of 65.63. However, its rapid growth may justify this multiple for investors focused on long-term potential.

For a deeper dive into DAVE’s financials, review the full fundamental analysis report.

Our Little Book screener lists more stocks matching these criteria and is updated regularly.

Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.