A wise investment decision involves buying well-performing stocks at the right time and selling those that are at risk. A rise in share price and strong fundamentals indicate a stock’s bullish run.
Green Dot Corporation (NYSE:GDOT) has performed extremely well so far this year and has the potential to sustain the momentum, going forward. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes Green Dot an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse in the past year. Green Dot’s shares have returned 27.9% compared with the industry’s rise of 9.6%.
Solid Rank: Green Dot sports a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or #2 (Buy) offer the attractive investment opportunities for investors. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Seven estimates for the current year have moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2018 moved up 4.2%.
Positive Earnings Surprise History: Green Dot has an impressive earnings surprise history. The company outpaced the consensus mark in each of the trailing four quarters, delivering a positive average earnings surprise of 18.4%.
Strong Growth Prospects: The Zacks Consensus Estimate for 2018 earnings is currently pegged at $3.22, reflecting year-over-year growth of 49.1%. Moreover, earnings are expected to register 13.7% growth in 2019.
Growth Factors: Green Dot is gaining momentum on the back of long-term strategic plan to be a ‘New Kind of Bank’. The company is trying to generate solid revenues from increasing customer satisfaction, which are expected to boost operating and financial momentum significantly, moving ahead.
BaaS platform programs are contributing significantly to the company’s GDV, active card and revenue growth. Green Dot invests heavily in a number of large BaaS programs to make the platform more productive and increase contribution.
Financially, Green Dot is in good shape with cash on hand worth $1.04 billion and no long-term debt as of Sep 30. The company retains all of its earnings as it does not pay any dividend. This provides the company more flexibility to pursue strategic acquisitions and invest in growth initiatives.
Other Stocks to Consider
A few other top-ranked stocks in the Zacks Business Services sector are Insperity, Inc. (NYSE:NSP) , SPS Commerce, Inc. (NASDAQ:SPSC) and Information Services Group, Inc. (NASDAQ:III) , each sporting a Zacks Rank #1.
The long-term expected EPS (three to five years) growth rate for Insperity, SPS Commerce and Information Services Group is 18%, 20%, and 14%, respectively.
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SPS Commerce, Inc. (SPSC): Free Stock Analysis Report
Information Services Group, Inc. (III): Free Stock Analysis Report
Insperity, Inc. (NSP): Free Stock Analysis Report
Green Dot Corporation (GDOT): Free Stock Analysis Report
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