The Business Services group has plenty of great stocks, but investors should always be looking for companies 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? Let's take a closer look at the stock's year-to-date performance to find out.
Dave Inc. is one of 234 individual stocks in the Business Services sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the 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 7.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that DAVE has returned about 3.9% since the start of the calendar year. At the same time, Business Services stocks have lost an average of 9.5%. This means that Dave Inc. is outperforming the sector as a whole this year.
One other Business Services stock that has outperformed the sector so far this year is GigaCloud Technology Inc. (GCT). The stock is up 18.6% year-to-date.
The consensus estimate for GigaCloud Technology Inc.'s current year EPS has increased 17.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Dave Inc. belongs to the Technology Services industry, a group that includes 111 individual stocks and currently sits at #173 in the Zacks Industry Rank. On average, this group has lost an average of 5.1% so far this year, meaning that DAVE is performing better in terms of year-to-date returns. GigaCloud Technology Inc. is also part of the same industry.
Investors interested in the Business Services sector may want to keep a close eye on Dave Inc. and GigaCloud Technology Inc. as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).