For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Dave Inc. (DAVE) one of those stocks right now? 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 257 companies in the Business Services group. The Business Services group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track 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 90 days, the Zacks Consensus Estimate for DAVE's full-year earnings has moved 50.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, DAVE has moved about 147.6% on a year-to-date basis. Meanwhile, the Business Services sector has returned an average of -7.8% on a year-to-date basis. This means that Dave Inc. is performing better than its sector in terms of year-to-date returns.
One other Business Services stock that has outperformed the sector so far this year is Digi Power X Inc. (DGXX). The stock is up 97.3% year-to-date.
In Digi Power X Inc.'s case, the consensus EPS estimate for the current year increased 12.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Dave Inc. belongs to the Technology Services industry, a group that includes 124 individual companies and currently sits at #89 in the Zacks Industry Rank. On average, this group has gained an average of 22.3% so far this year, meaning that DAVE is performing better in terms of year-to-date returns. Digi Power X Inc. is also part of the same industry.
Investors with an interest in Business Services stocks should continue to track Dave Inc. and Digi Power X Inc.. These stocks will be looking to continue their solid performance.
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Dave Inc. (DAVE): Free Stock Analysis Report Digi Power X Inc. (DGXX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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