Home Stocks This Small-Cap Company Joins Top Fintech Stocks Mastercard, Visa, PayPal – Investor's Business Daily

This Small-Cap Company Joins Top Fintech Stocks Mastercard, Visa, PayPal – Investor's Business Daily

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There’s a newcomer to Investor’s Business Daily’s top fintech stocks, which include well-known names Mastercard (MA), Visa (V), PayPal Holdings (PYPL) and Square (SQ). Green Dot stock, called “an evolving fintech story” by one analyst’s account, is now in good company.


Green Dot (GDOT) has the highest Composite Rating, along with Mastercard, in IBD’s Finance Credit Card/Payment Processor group. Visa, PayPal and Square also rank in the group’s top five.

Green Dot also ranks No. 27 in the IBD 50 roster of growth stocks.

BTIG Research analyst Mark Palmer on Jan. 3 upgraded the provider of reloadable prepaid debit cards to buy. He said Green Dot is a top fintech stock.

Green Dot Customers Include Walmart, Apple, Uber

“We view the company’s shares, which trade at 17.7 times estimated fiscal 2020 adjusted EPS (of $4.09), as deserving to trade in the same context as high-growth credit card networks Visa and Mastercard that trade at 20.7 times and 20.4 times adjusted EPS and to high-growth payment companies such as PayPal,” Palmer said in a report to clients.

Green Dot provides alternative banking and payment processing services, including substitute checking accounts funded by direct deposit. Walmart (WMT) is its biggest customer for reloadable prepaid cards. Other Green Dot customers include ride-hailing firm Uber Technologies and Apple (AAPL).

“We view much of Green Dot’s potential upside as stemming from its expanding roster of enterprise-level programs its banking-as-a-service partnerships that already includes Apple Pay Cash Card, Intuit‘s (INTU) TurboTax prepaid card, Uber’s Instant Pay and cash-in and cash-out money services at Walmart,” said Palmer.

Green Dot slipped 0.7% to 81.24 on the stock market today as the Nasdaq composite fell amid worries over the partial government shutdown.

Can Square Rebound Among Fintech Stocks?

Green Dot has an entry point of 93. The stock has been consolidating since forming a cup pattern from September through mid-November.

Green Dot has a relative strength rating of 94. The RS line measures a stock’s action versus the S&P 500.

IBD’s Finance Credit Card/Payment Processor group is ranked No. 70 out of 197 industry groups. PayPal stock has neared a buy point.

Square stock has plummeted 35% from an intraday high of 101 set on Oct. 1. Square stock, though, has gained 10 out of the last 12 trading sessions, touching its 50-day-moving-average.


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