• Dave (DAVE) shows strong technical momentum with a 100% “Buy” signal via Barchart.
• The stock is trading above its key moving averages.
• Shares are up nearly 410% over the past year. 

Dave has strong fundamentals and bullish analyst sentiment to sweeten the deal. 

Today’s Featured Stock:

Valued at $2.9 billion, Dave (DAVE) is a digital banking service that provides financial products and services through its mobile app. 

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. DAVE checks those boxes. Since the Trend Seeker signaled a buy on April 29, the stock has gained 128.06%.

DAVE Price vs. Daily Moving Averages:

Barchart Technical Indicators for Dave:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

When a stock is trading above all its daily moving averages and closes at its 52-week high, it won’t take much to hit another new high.

• Dave has a 100% technical “Buy” signal.
• The stock closed at $217.16 on May 28, above its 50-day moving average of $116.07.
• DAVE has a Weighted Alpha of +213.86.
• The stock has gained nearly 410% over the past year.
• Trend Seeker “Buy” signal intact.
• DAVE is trading above its 20, 50 and 100-day moving averages.
• The stock has made 1 new highs and gained 130% in the last month.
• Relative Strength Index is at 89.69%.
• The technical support level is $204.22.

Follow the Fundamentals:

• $2.9 billion market cap.
• 47.89x trailing price-earnings ratio.
• Revenue is projected to grow 34.86% this year and another 18.49% next year.
• Earnings are estimated to increase 65.08% this year and an additional 13.70% next year.

Analyst and Investor Sentiment on Dave:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like not only Wall Street analysts, but also many of the popular investing advisory services, are moderately bullish on this stock.

• Wall Street analysts tracked by Barchart issued seven “Strong Buy” opinions on the stock.
• Value Line gives the stock an above-average rating.
• CFRA’s MarketScope gives the stock a “Buy.”
• Morningstar thinks the stock is 27% overvalued.
• 4,440 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line:

Dave currently has momentum and support from both the market and individual investors but faces competition from both Chime and MoneyLion.

I caution that DAVE is volatile and speculative — use strict risk management and stop-loss strategies.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.