Dave Inc. is in a 12-week-long consolidation base with a buy point of 286.45. Shares have rebounded from their 50-day moving average within the base amid a four-day winning streak. The fintech stock is Tuesday's selection for IBD 50 Growth Stocks To Watch.
This is an early-stage base that can yield higher gains than later-stage ones. The stock also offers an early entry at 249.90, according to IBD MarketSurge.
The company operates a mobile app and a digital platform that have several features for banking and credit. The app features a proprietary artificial intelligence underwriting model that analyzes cash flows in customer accounts, as well as a generative AI feature called DaveGPT, which can set up and manage accounts. Famed investor Mark Cuban was an early investor in Dave.
Dave has posted a profit for seven quarters now. Earnings growth in the three most recent quarters has rocketed higher. Earnings increased 211% to $3.14 per share during its second quarter ended June 30.
Sales have also risen, ranging from 16% to 64% over the past eight quarters. Second-quarter sales jumped 64% to $131.7 million. Dave logged 2.3 million monthly transacting members in its most recent quarter, up 16% from the same quarter a year ago and up 4% sequentially.
For the full year, analysts polled by FactSet project earnings to rise 23% to $6.37 per share. For 2026, Wall Street foresees 39% growth to $8.85 per share.
Meanwhile, the company has increased its share repurchase program to $125 million from $50 million.
Fintech Stock Vaults 179% On Earnings Surge
Dave leads the tech services industry group, according to IBD Stock Checkup. The group holds 47th place among Investor's Business Daily's 197 industry groups. The fintech stock has gained 179% year to date, going by Monday's closing price.
Its Relative Strength Rating sits at 98, while the Composite Rating is also solid at 97 out of 99. Its Earnings Per Share Rating of 83 meets the recommended threshold of 80.
More funds have been adding the stock to their portfolios over the past seven quarters. However, over the most recent 13 weeks, funds have been neutral, as indicated by the fintech stock's Accumulation/Distribution Rating of C-.
In the IBD mutual fund index, the Columbia Small Cap Growth Fund (CMSCX) holds shares of Dave.
The company said that more than 12 million members have opened a Dave account or have connected a bank account since the app launched in 2017.
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