Why DAVE INC (NASDAQ:DAVE) Fits the Minervini Strategy for High-Growth Investors

DAVE INC (NASDAQ:DAVE) has emerged as a standout candidate for investors following Mark Minervini’s trend-following strategy while also appealing to those seeking high-growth opportunities. The digital banking service provider meets key technical criteria from Minervini’s Trend Template and exhibits strong fundamental growth metrics.

Technical Strength: Meeting Minervini’s Trend Template

DAVE’s stock is in a clear uptrend, satisfying all critical technical conditions outlined by Minervini:

• Price Above Key Moving Averages:
  • Current price ($262.07) is well above the 50-day ($194.60), 150-day ($125.73), and 200-day ($107.01) moving averages.
  • The 50-day MA is above both the 150-day and 200-day MAs, confirming bullish momentum.
• Strong Relative Strength:
  • With a ChartMill Relative Strength (CRS) score of 99.59, DAVE outperforms nearly all stocks in the market.
• Price Near 52-Week High:
  • Trading within 8.5% of its 52-week high ($286.45), indicating sustained upward momentum.
• Trending Moving Averages:
  • The 150-day and 200-day MAs are both rising, reinforcing long-term bullish sentiment.

Fundamental Growth: A High-Growth Contender

Beyond technicals, DAVE demonstrates exceptional growth metrics that align with high-growth investing:

• Earnings Growth:
  • EPS (TTM) surged 266.5% year-over-year, with recent quarterly EPS growth exceeding 1,541%.
  • Analysts have raised next-year EPS estimates by 112.66% over the past three months.
• Revenue Expansion:
  • Revenue grew 39.3% over the past 12 months, with consistent quarterly growth averaging 40%+.
  • Future revenue estimates have been revised upward by 10.9% in the last three months.
• Profitability Improvements:
  • Profit margins expanded to 26.7% in the latest quarter, up from 0.5% two quarters prior.
  • Free cash flow per share grew 399.3% year-over-year.

Technical Report Summary

DAVE’s technical report highlights:

• A perfect 10/10 technical rating, reflecting strong price momentum and trend health.
• The stock is outperforming 99% of all stocks and 100% of its Consumer Finance peers.
• While the setup rating is currently 3/10 due to recent volatility, the long-term trend remains intact.

Our High Growth Momentum + Trend Template screener lists more stocks with similar growth and technical strength.

Disclaimer

This is not investment advice. Always conduct your own research and consider risk management before making investment decisions.