DAVE INC (DAVE) Soars 11.6%: Is Further Upside Left in the Stock?

Dave Inc. (DAVE) shares soared 11.6% in the last trading session to close at $192.33. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.4% loss over the past four weeks.

The stock is benefiting from strong member growth, improving credit quality driven by its CashAI underwriting system, and expanding margins, reinforcing confidence in its long-term growth trajectory.

This company is expected to post quarterly earnings of $3.50 per share in its upcoming report, which represents a year-over-year change of +71.6%. Revenues are expected to be $164 million, up 62.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For DAVE INC, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DAVE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

DAVE INC is part of the Zacks Technology Services industry. Byrna Technologies Inc. (BYRN), another stock in the same industry, closed the last trading session 0.2% lower at $13.39. BYRN has returned -8.1% in the past month.

Byrna Technologies' consensus EPS estimate for the upcoming report has changed -7.1% over the past month to $0.07. Compared to the company's year-ago EPS, this represents no change. Byrna Technologies currently boasts a Zacks Rank of #4 (Sell).

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This article originally published on Zacks Investment Research (zacks.com).

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