Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Green Dot Corp.
So what: There's no doubting Green Dot's growth. The company, which supplies prepaid debit cards to lower-income consumers, saw revenue rise 32% to $91.9 million. Trouble is, analysts were expecting $96.8 million.
Now what: At first blush, Green Dot seems like an obvious winner. Wal-Mart
Janney Capital Markets analyst Thomas McCrohan isn't convinced. He thinks the stock's valuation doesn't account for the risk of increased competition. "While we like the business model and prospects for reloadable prepaid cards, our rating reflects our assessment of fair value," McCrohan said in an interview with The Associated Press.
McCrohan's concerns are well-taken. Also, with the stock trading for roughly twice the long-term growth rate analysts expect even after today's sell-off, I suspect Fools need not rush to open a position.
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