Dave Inc. (DAVE) Hits Fresh High: Is There Still Room to Run?

A strong stock as of late has been Dave Inc. (DAVE). Shares have been marching higher, with the stock up 39.7% over the past month. The stock hit a new 52-week high of $409 in the previous session. DAVE INC has gained 81% since the start of the year compared to the -8.5% move for the Zacks Business Services sector and the -0.4% return for the Zacks Technology Services industry.

What's Driving the Outperformance?

The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 5, 2026, DAVE INC reported EPS of $3.64 versus consensus estimate of $2.86 while it beat the consensus revenue estimate by 6.79%.

For the current fiscal year, DAVE INC is expected to post earnings of $16.62 per share on $713.7 in revenues. This represents a 26.1% change in EPS on a 28.78% change in revenues. For the next fiscal year, the company is expected to earn $20.92 per share on $848.88 in revenues. This represents a year-over-year change of 25.88% and 18.94%, respectively.

Valuation Metrics

While DAVE INC has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.

DAVE INC has a Value Score of D. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 24.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 17X. On a trailing cash flow basis, the stock currently trades at 31.1X versus its peer group's average of 12.6X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, DAVE INC currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if DAVE INC fits the bill. Thus, it seems as though DAVE INC shares could still be poised for more gains ahead.

How Does DAVE Stack Up to the Competition?

Shares of DAVE have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Full Truck Alliance Co. Ltd. Sponsored ADR (YMM). YMM has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of D.

Earnings were strong last quarter. Full Truck Alliance Co. Ltd. Sponsored ADR beat our consensus estimate by 30.77%, and for the current fiscal year, YMM is expected to post earnings of $0.70 per share on revenue of $1.71 billion.

Shares of Full Truck Alliance Co. Ltd. Sponsored ADR have gained 1.5% over the past month, and currently trade at a forward P/E of 12.24X and a P/CF of 13.65X.

The Technology Services industry is in the top 45% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DAVE and YMM, even beyond their own solid fundamental situation.

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

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