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

DAVE INC (NASDAQ:DAVE) has been identified as a potential growth stock using Louis Navellier’s Little Book strategy. The company, a digital banking service provider, meets multiple criteria from Navellier’s eight growth investing rules, showing strong earnings momentum, accelerating revenue, and improving profitability. Below, we examine why DAVE stands out.

Key Strengths Based on Little Book Criteria

• Positive Earnings Revisions & Surprises
  Analysts have raised next-quarter EPS estimates by 113.4% over the last three months, signaling confidence in future performance. Additionally, DAVE has beaten EPS estimates in all of the last four quarters, with an average surprise of 197.9%.

• Rapid Sales & Earnings Growth
  Revenue grew 39.3% year-over-year (TTM), while quarterly sales surged 46.7% compared to the same period last year. EPS growth is even more striking, with a 266.5% year-over-year increase and a staggering 1,541.7% jump in the latest quarter.

• Expanding Profitability
  Operating margins improved by 290% over the past year, reflecting better cost efficiency. Free cash flow also expanded significantly, rising 399.3% year-over-year.

• High Return on Equity
  DAVE’s ROE of 26.3% indicates strong profitability relative to shareholder equity, outperforming most peers in the consumer finance industry.

Fundamental Overview

DAVE’s financial health is solid, with high liquidity (Current Ratio: 8.59) and manageable debt levels. However, its valuation appears expensive, with a P/E ratio of 77.6, though this may be justified by its high expected earnings growth (56.7% annually).

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

Our Little Book Growth Stock Screener provides more stocks that fit this strategy.

Disclaimer

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