Have you been paying attention to shares of Dave Inc. (DAVE)? Shares have been on the move with the stock up 35.6% over the past month. The stock hit a new 52-week high of $322.01 in the previous session. DAVE INC has gained 39.9% since the start of the year compared to the -12.9% move for the Zacks Business Services sector and the -3.4% return for the Zacks Technology Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each 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 $16.6 per share on $713.7 in revenues. This represents a 26.02% 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 25.98% and 18.94%, respectively.
Valuation Metrics
Though DAVE INC has recently hit a 52-week high, what is next for DAVE INC? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
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). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. 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 C. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 18.7X current fiscal year EPS estimates, which is a premium to the peer industry average of 15.4X. On a trailing cash flow basis, the stock currently trades at 24.1X versus its peer group's average of 12.1X. 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 consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, DAVE INC currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
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 have a bit more room to run in the near term.
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 Yext (YEXT). YEXT has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. Yext beat our consensus estimate by 7.69%, and for the current fiscal year, YEXT is expected to post earnings of $0.68 per share on revenue of $443.6 million.
Shares of Yext have gained 7.1% over the past month, and currently trade at a forward P/E of 5.79X and a P/CF of 7.3X.
The Technology Services industry may rank in the bottom 70% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for DAVE and YEXT, even beyond their own solid fundamental situation.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
