Are Business Services Stocks Lagging DAVE INC (DAVE) This Year?

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Dave Inc. (DAVE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.

Dave Inc. is one of 234 individual stocks in the Business Services sector. Collectively, these companies sit at #11 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Dave Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for DAVE's full-year earnings has moved 9.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, DAVE has returned 23.1% so far this year. Meanwhile, the Business Services sector has returned an average of -9.3% on a year-to-date basis. This means that Dave Inc. is outperforming the sector as a whole this year.

Another Business Services stock, which has outperformed the sector so far this year, is GigaCloud Technology Inc. (GCT). The stock has returned 14.8% year-to-date.

In GigaCloud Technology Inc.'s case, the consensus EPS estimate for the current year increased 17.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Dave Inc. is a member of the Technology Services industry, which includes 111 individual companies and currently sits at #177 in the Zacks Industry Rank. This group has lost an average of 2.9% so far this year, so DAVE is performing better in this area. GigaCloud Technology Inc. is also part of the same industry.

Investors with an interest in Business Services stocks should continue to track Dave Inc. and GigaCloud Technology Inc.. These stocks will be looking to continue their solid performance.

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

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