Dave Inc. (DAVE) Soars to 52-Week High, Time to Cash Out?

Have you been paying attention to shares of Dave Inc. (DAVE)? Shares have been on the move with the stock up 112.3% over the past month. The stock hit a new 52-week high of $201.45 in the previous session. Dave Inc. has gained 127% since the start of the year compared to the 2.5% move for the Zacks Business Services sector and the 3% return for the Zacks Technology Services industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 8, 2025, DAVE INC reported EPS of $2.48 versus consensus estimate of $1.54 while it beat the consensus revenue estimate by 17.9%.For the current fiscal year, DAVE INC is expected to post earnings of $8.41 per share on $466.5 million in revenues. This represents a 60.5% change in EPS on a 34.4% change in revenues. For the next fiscal year, the company is expected to earn $10.68 per share on $570.73 million in revenues. This represents a year-over-year change of 26.93% and 22.34%, respectively.Valuation MetricsDAVE INC may be at a 52-week high right now, but what might the future hold for the stock? 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). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.DAVE INC has a Value Score of F. 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 23.5X current fiscal year EPS estimates, which is a premium to the peer industry average of 19.9X. On a trailing cash flow basis, the stock currently trades at 39.3X versus its peer group's average of 10.3X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, DAVE INC currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.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 passes the test. 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 Allot Ltd. (ALLT). ALLT has a Zacks Rank of # 1 (Strong Buy) and a Value Score of F, a Growth Score of A, and a Momentum Score of A.Earnings were strong last quarter. Allot Ltd. beat our consensus estimate by 140%, and for the current fiscal year, ALLT is expected to post earnings of $0.11 per share on revenue of $98.6 million.Shares of Allot Ltd. have gained 32.5% over the past month, and currently trade at a forward P/E of 72.36X and a P/CF of 168.41X.The Technology Services industry is in the top 21% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DAVE and ALLT, even beyond their own solid fundamental situation.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dave Inc. (DAVE): Free Stock Analysis Report Allot Ltd. (ALLT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks