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S&P 500   4,026.12
DOW   34,347.03
QQQ   286.92
Considerations When Rolling Over a 401(k) into a Roth IRA
THE BEST BLACK FRIDAY DEAL YET (Ad)
Sober or bright? Europe faces holidays during energy crunch
Biden eases Venezuela sanctions as opposition talks resume
THE BEST BLACK FRIDAY DEAL YET (Ad)
Whole Foods decision to pull lobster divides enviros, pols
Airbnb has a plan to fix cleaning fees
THE BEST BLACK FRIDAY DEAL YET (Ad)
Railway workers in Austria to strike Monday in pay standoff
Saudi viewers angry over apparent ban on World Cup streaming
S&P 500   4,026.12
DOW   34,347.03
QQQ   286.92
Considerations When Rolling Over a 401(k) into a Roth IRA
THE BEST BLACK FRIDAY DEAL YET (Ad)
Sober or bright? Europe faces holidays during energy crunch
Biden eases Venezuela sanctions as opposition talks resume
THE BEST BLACK FRIDAY DEAL YET (Ad)
Whole Foods decision to pull lobster divides enviros, pols
Airbnb has a plan to fix cleaning fees
THE BEST BLACK FRIDAY DEAL YET (Ad)
Railway workers in Austria to strike Monday in pay standoff
Saudi viewers angry over apparent ban on World Cup streaming
S&P 500   4,026.12
DOW   34,347.03
QQQ   286.92
Considerations When Rolling Over a 401(k) into a Roth IRA
THE BEST BLACK FRIDAY DEAL YET (Ad)
Sober or bright? Europe faces holidays during energy crunch
Biden eases Venezuela sanctions as opposition talks resume
THE BEST BLACK FRIDAY DEAL YET (Ad)
Whole Foods decision to pull lobster divides enviros, pols
Airbnb has a plan to fix cleaning fees
THE BEST BLACK FRIDAY DEAL YET (Ad)
Railway workers in Austria to strike Monday in pay standoff
Saudi viewers angry over apparent ban on World Cup streaming
S&P 500   4,026.12
DOW   34,347.03
QQQ   286.92
Considerations When Rolling Over a 401(k) into a Roth IRA
THE BEST BLACK FRIDAY DEAL YET (Ad)
Sober or bright? Europe faces holidays during energy crunch
Biden eases Venezuela sanctions as opposition talks resume
THE BEST BLACK FRIDAY DEAL YET (Ad)
Whole Foods decision to pull lobster divides enviros, pols
Airbnb has a plan to fix cleaning fees
THE BEST BLACK FRIDAY DEAL YET (Ad)
Railway workers in Austria to strike Monday in pay standoff
Saudi viewers angry over apparent ban on World Cup streaming

Green Dot (NASDAQ: GDOT) Stock is a Rising BaaS Star

Green Dot (NASDAQ: GDOT) Stock is a Rising BaaS StarBanking as a service company Green Dot Corporation (NASDAQ: GDOT) has transformed itself from just a prepaid debit card maker to a fully integrated fintech bank holding company in a few years. Shares are still outperforming the benchmark S&P 500 index (NYSEARCA: SPY). The growth of mainstream digital payment platforms has enabled this company to grow under-the-radar of investors. Convenient access to transfer, receive and use funds has been a staple pandemic play. The Company continues to grow and entrench its brand with major retailers with its whiteboard VISA card serving the underbanked demographic. With holiday shopping season upon us, prudent investors may want to get exposure on this banking as a service (BaaS) play at opportunistic pullback price levels.   

Q3 FY 2020 Earnings Release

On Nov. 4, 2020, Green Dot released its fiscal third-quarter 2020 results for the quarter ending September 2020. The Company reported an adjusted earnings-per-share (EPS) profit of $0.25 excluding non-recurring items versus consensus analyst estimates for $0.11, beating estimates by $0.14. Revenues grew by 21.1% year-over-year (YOY) to $291.1 million beating analyst estimates of $244.66 million. The effects of COVID-19 accelerated its BaaS growth but also raised costs for its call centers due to the March 2020 Federal Reserve reduction in short-term rates. Lower marketing expenses were offset by higher partnership revenue share rates and compensation expenses grew by 18% due to incentive programs. The Company has $100 million available with its credit revolver.


Conference Call Takeaways

Green Dot CEO, Dan Henry, expounded on, “unlocking new opportunities and capitalizing on the accelerated shift from cash to digital banking and payments”. The Company is, “seeing benefits from the work-from-anywhere initiative in both cost savings and talent recruitment perspective.” The Company commenced new partnerships with Intuit (NASDAQ: INTU) and Kabbage. Intuit will leverage Green Dot’s platform to rollout QuickBooks Cash Account service. Kabbage will rollout Kabbage Checking service. The Company plans to deepen their relationships to further penetrate the 30 million small businesses and entrepreneur in the U.S. The Company also invested and lead the Series A funding round of start-up Gig Wage, which is a fast growing platform for servicing and providing financial solutions for 1099 workers and employers. Green Dot serves as their infrastructure banking partner. Henry reiterated their commitment to partnering with “Select high-impact and high potential companies, meaning they are highly respected brands with very impressive reach.” He teased that they will be announcing a few new partners soon. They will also be rolling out Go-To Bank next year, which is the new direct-to-consumer bank product. The Company officially launched the wait-list for the Go-To Bank service which targets low to moderate-income consumers and the underbanked population directly.

Raised Full-Year Guidance

Green Dot raised its EPS guidance for full-year 2020 to a range of $1.95 to $2.00 from its $1.60 to $1.70 previous forecast, surpassing consensus analyst estimates for $1.82. Full-year 2020 non-GAAP revenues are projected between $1.175 billion to $1.185 billion.

Partnerships with Major Brands

Green Dot has entrenched itself serving 33 million customers through whiteboard partnerships with major brands like Walmart (NYSE: WMT) , Apple (NASDAQ: AAPL) and Uber (NASDAQ: UBER). It’s prepaid Visa (NYSE: V) cards dominate the shelves at major grocers like Kroger’s (NYSE: KR) and convenience stores across the nation. The rollout of Go-To Bank in 2021 will parlay its network to accelerate growth and further solidify the Company as a dominate fintech that’s been around for two decades. Recently, shares spiked on the rumor of a potential partnership with Amazon (NASDAQ: AMZN). However, that strong spike was followed by a steep sell-off which may deliver prudent investors opportunistic pullback price levels to take exposure.

Green Dot (NASDAQ: GDOT) Stock is a Rising BaaS Star

 GDOT Opportunistic Pullback Levels

Using the rifle charts on the monthly and weekly time frames provides a broader view of the landscape for GDOT stock. The monthly rifle chart has been in a bullish stochastic mini pup breakout since bottoming in March 2020. The spike to the $64.97 is attributed to the Amazon partnership rumor and has the potential to be a shooting star candlestick reversal. However, the November monthly candlestick body high has already transcended October’s body high. This bodes well for a continuation only after the stochastic reverses back up. The weekly rifle chart formed a market structure low (MSL) buy trigger above $28.71 in March. The weekly stochastic has peaked twice sequentially at lower bands which triggers a divergent top oscillation down towards testing the $51.98 Fibonacci (fib) level which also overlaps with the monthly 5-period moving average (MA) support. Prudent investors can look to take some exposure into the opportunistic pullback levels at the $51.98 fib, $48.86 fib, $44.23 fib and $39.63 fib. The upside trajectory range is the $62.74 fib to $73.32 monthly upper Bollinger Band and fib level.

7 Stocks with a Great Setup for 2023

2022 is nearly in the books, and for many investors turning the page to a new year can't come soon enough. Will 2023 be better for stocks? If history is a guide it will be.

In the 12 months following mid-term elections (the elections held in the middle of a president's four-year term), stocks have performed well. This is typically because mid-term elections tend not to go well for the party that sits in the White House.

The reasons for that trend are not something that's in our wheelhouse. We're just looking at what it means for stocks. And what it suggests is that next year the markets could see a strong recovery…at some point. But as is frequently the case, you have to be in the right stocks.  

That's the focus of this special presentation. We're taking a look at seven stocks that have a strong case to be made for growth in the coming year. And some of these stocks are offering a good entry point for investors right now.

View the Stocks Here .

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Apple (AAPL)
2.9227 of 5 stars
$148.11-2.0%0.62%24.24Moderate Buy$176.30
Walmart (WMT)
2.5294 of 5 stars
$153.07+0.4%1.46%47.24Moderate Buy$160.14
Amazon.com (AMZN)
2.9776 of 5 stars
$93.41-0.8%N/A85.74Moderate Buy$149.40
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Jea Yu

About Jea Yu

Contributing Author: Trading Strategies

With over 20 years of active participation and analysis of the US equities, options and futures markets, Mr. Yu brings fresh insights into the workings of the financial markets. He has published four books by esteemed publishers McGraw-Hill, John Wiley & Sons, Marketplace Books and Bloomberg Press. His brainchild, the Underground Trader, was voted Forbes Best of the Web for four consecutive years under the active trader category. He has been a featured speaker all over the country at various expos and seminars who enjoys a standing-room-only reception in the largest convention halls from New York to Las Vegas. He has been quoted and featured in USA Today, Wall Street Journal, Traders Magazine and the Financial Times and various trade publications like Stocks & Commodities, Active Trader and Online Investor. Mr. Yu has a B.A. in Liberal Arts and minor in Business Administration from the University of Maryland.
Contact Jea Yu via email at JeaYu21@gmail.com.