We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Green Dot remains focused on ensuring the long-term growth of its businesses. The company’s efforts are directed toward acquiring long-term users of its products, improving brands and image, building market adoption and awareness of products, increasing card usage and retaining customers. Its sales and marketing efforts are focused on a broad group, ranging from never-banked to fully-banked consumers.
Green Dot is expanding its addressable market with the help of its banking-as-a-service (BaaS) account programs. The company partners with some top consumer and technology companies to design and develop their fintech banking solutions through its BaaS platform. These solutions are then made available by these companies to their consumers and partners again through integration with the BaaS program, eventually expanding Green Dot’s spectrum of consumers.
Green Dot’s cash, cash equivalents and restricted cash balance at the end of third-quarter 2021 was $1.8 billion with no debt to clear off. This strong cash position allows the company to invest in opportunities that show true potential.
Risks Associated
Green Dot is seeing an increase in expenses as it continues to invest in sales, marketing and product development. For the third quarter, total operating expenses rose 12.6% year over year to $330.7 million.
Green Dot faces tough competition from companies across financial services, financial technology services, retail banking, transaction processing and consumer technology industries.
Zacks Rank and Stocks to Consider
Green Dotcurrently carries a Zacks Rank #3 (Hold).
Avis Budgethas an expected earnings growth rate of around 453.5% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 499.7% in the past year. CAR has a long-term earnings growth of 18.8%. CAR sports a Zacks #1 Rank.
Cross Country Healthcare has an expected earnings growth rate of around 500% for the current year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 499.7% in the past year. CCRN has a long-term earnings growth of 21.5%. CCRN flaunts a Zacks #1 Rank.
CRA Internationalhas an expected earnings growth rate of around 61.2% for the current year. CRA International has a trailing four-quarter earnings surprise of 51%, on average.
CRA International’s shares have surged 75.4% in the past year. CRA International has a long-term earnings growth of 15.5%. The stock carries a Zacks #2 (Buy) Rank.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Reasons to Retain Green Dot (GDOT) Stock in Your Portfolio
Green Dot Corporation (GDOT - Free Report) is currently benefiting from an expanding addressable market and long-term growth strategies.
The company’s earnings for 2021 and 2022 are expected to grow at a rate of 6.2% and 18.8%, respectively, on a year-over-year basis.
Green Dot Corporation Price, Consensus and EPS Surprise
Green Dot Corporation price-consensus-eps-surprise-chart | Green Dot Corporation Quote
Factors That Bode Well
Green Dot remains focused on ensuring the long-term growth of its businesses. The company’s efforts are directed toward acquiring long-term users of its products, improving brands and image, building market adoption and awareness of products, increasing card usage and retaining customers. Its sales and marketing efforts are focused on a broad group, ranging from never-banked to fully-banked consumers.
Green Dot is expanding its addressable market with the help of its banking-as-a-service (BaaS) account programs. The company partners with some top consumer and technology companies to design and develop their fintech banking solutions through its BaaS platform. These solutions are then made available by these companies to their consumers and partners again through integration with the BaaS program, eventually expanding Green Dot’s spectrum of consumers.
Green Dot’s cash, cash equivalents and restricted cash balance at the end of third-quarter 2021 was $1.8 billion with no debt to clear off. This strong cash position allows the company to invest in opportunities that show true potential.
Risks Associated
Green Dot is seeing an increase in expenses as it continues to invest in sales, marketing and product development. For the third quarter, total operating expenses rose 12.6% year over year to $330.7 million.
Green Dot faces tough competition from companies across financial services, financial technology services, retail banking, transaction processing and consumer technology industries.
Zacks Rank and Stocks to Consider
Green Dotcurrently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget (CAR - Free Report) , Cross Country Healthcare, Inc. (CCRN - Free Report) and CRA International, Inc. (CRAI - Free Report) .
Avis Budgethas an expected earnings growth rate of around 453.5% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.
Avis Budget’s shares have surged 499.7% in the past year. CAR has a long-term earnings growth of 18.8%. CAR sports a Zacks #1 Rank.
Cross Country Healthcare has an expected earnings growth rate of around 500% for the current year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.
Cross Country Healthcare’s shares have surged 499.7% in the past year. CCRN has a long-term earnings growth of 21.5%. CCRN flaunts a Zacks #1 Rank.
CRA Internationalhas an expected earnings growth rate of around 61.2% for the current year. CRA International has a trailing four-quarter earnings surprise of 51%, on average.
CRA International’s shares have surged 75.4% in the past year. CRA International has a long-term earnings growth of 15.5%. The stock carries a Zacks #2 (Buy) Rank.