DAVE Inc (NASDAQ:DAVE): A Minervini Trend Template and High-Growth Earnings Play

A method for finding high-potential growth stocks mixes strict technical study with basic growth measures. This system, made famous by well-known trader Mark Minervini, uses his Trend Template to find stocks in strong uptrends while also needing outstanding earnings and sales speed. Stocks that pass both these technical and basic checks often stand for companies showing both market leadership and fast business growth, making situations good for major price gains.

Technical Strength: Following the Minervini Trend Template

Dave Inc (NASDAQ:DAVE) shows a technical chart setup that matches the rules of the Minervini Trend Template. This template is made to sort for stocks in a clear Stage 2 uptrend, making sure an investor only looks at assets where the momentum is clearly positive. DAVE's present price action and moving average setup meet these strict needs.

• Price Above Key Moving Averages: The stock is trading well above its 50-day ($219.42), 150-day ($195.50), and 200-day ($170.30) simple moving averages (SMAs). This stacked order is a typical sign of a solid bullish trend across many timeframes.
• Rising Moving Averages: All main SMAs, 50, 150, and 200-day, are in clear uptrends. The 200-day SMA, for example, has gone up from its past value of $169.66 to its present $170.30, confirming continued long-term buying pressure.
• Nearness to Highs: DAVE's present price is located in the upper part of its 52-week range, trading much above its 52-week low of $54.39. Being nearer to new highs than old lows is a sign of market-leading stocks, according to Minervini's idea that "strength begets strength."
• Superior Relative Strength: With a ChartMill Relative Strength (CRS) score of 98.53, DAVE is doing better than almost 99% of all stocks in the market. This outstanding relative strength is a key part of the Trend Template, showing the stock is a leader, not a follower, and is probably drawing institutional money.

Fundamental Health: A High-Growth Picture

Beyond a technically good chart, the Minervini method needs solid basic health, especially speeding up earnings and sales. DAVE presents a strong case for high-growth investors based on its newest financial results.

• Fast Earnings Growth: The company has shown very high profitability growth. Its Earnings Per Share (TTM) growth year-over-year is at 1,129%, while the newest quarter showed a very high 14,033% growth compared to the same quarter last year. This type of strong earnings speed is a main force behind big stock market winners.
• Solid and Speeding Up Revenue: Top-line growth is also solid, with a 63% rise in sales for the last quarter. This shows that the company is not just making profitability better through cost-cutting but is also growing its main business at a high rate.
• Positive Earnings Surprises: DAVE has beaten EPS guesses in three of the last four quarters, with an average beat of 92.8%. Steady positive surprises often lead analysts to change future guesses upward, creating a help for the stock price.
• Good Profit Margins: The company has reached positive and getting better profit margins, with the last reported quarter at 6.86%. This shows an ability to change revenue growth into actual earnings, a key point for lasting growth.

Technical Study Summary

The separate technical report from ChartMill gives DAVE a top rating of 10 out of 10, showing its steady good performance in both short and long-term timeframes. The report notes a fair setup rating of 7, suggesting prices have been settling recently, which can sometimes come before a new move higher. Key support is found in the $194-$195 range, with resistance near $248-$256. A recent "Pocket Pivot" signal, a bullish price/volume pattern, was also seen, adding to the positive technical view. For a full breakdown, you can look at the full technical study report for DAVE.

Conclusion

Dave Inc stands for a strong case where a solid technical setup, as described by the Minervini Trend Template, is supported by fast basic growth. The stock's place above all key moving averages, superior relative strength, and nearness to new highs point to solid market momentum. At the same time, its triple-digit earnings growth and solid sales rises give the basic fuel that can support such a trend. For investors looking for high-growth chances within an organized, trend-following structure, DAVE deserves more study.

This stock was found using a preset screen for High Growth Momentum and the Minervini Trend Template. You can find more possible picks that meet these strict rules by checking the screen here.

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