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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? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.
Dave Inc. is a member of our Business Services group, which includes 312 different companies and currently sits at #5 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 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 #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for DAVE's full-year earnings has moved 363.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, DAVE has gained about 488.9% so far this year. Meanwhile, stocks in the Business Services group have gained about 19.1% on average. This shows that Dave Inc. is outperforming its peers so far this year.
One other Business Services stock that has outperformed the sector so far this year is Sezzle Inc. (SEZL). The stock is up 890.2% year-to-date.
In Sezzle Inc.'s case, the consensus EPS estimate for the current year increased 39.1% 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 167 individual stocks and currently sits at #78 in the Zacks Industry Rank. On average, stocks in this group have gained 35.1% this year, meaning that DAVE is performing better in terms of year-to-date returns.
In contrast, Sezzle Inc. falls under the Financial Transaction Services industry. Currently, this industry has 43 stocks and is ranked #91. Since the beginning of the year, the industry has moved +15.2%.
Going forward, investors interested in Business Services stocks should continue to pay close attention to Dave Inc. and Sezzle Inc. as they could maintain their solid performance.
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