As optimism grows over a potential resolution to the U.S.-Iran conflict, stocks in the Zacks Business Services sector are gaining attention. Notably, three firms—Dave Inc., GigaCloud Technology, and Sezzle Inc.—are highlighted for their growth potential and reasonable valuations amidst recent market volatility.
Dave Inc (DAVE)
Stock Price: $173
Dave Inc., a fintech company focused on assisting underserved consumers with cash management, has seen its stock rise over 400% in the last two years. Despite this growth, it is currently down over 50% from its 52-week high of $286. The company recorded a staggering 170% sales growth from $205 million in 2022 with projected earnings per share (EPS) expected to grow 10% in FY26 and 24% the following year.
GigaCloud Technology (GCT)
Stock Price: $45
GigaCloud, which specializes in B2B tech solutions, has increased 17% year-to-date, nearing its all-time high of $48. The company exceeded Q4 EPS expectations with earnings of $1.04 per share versus the anticipated $0.65. GCT is also projected to experience over 14% growth in EPS in FY26 and FY27 and has surpassed $1 billion in annual sales.
Sezzle Inc (SEZL)
Stock Price: $63
Sezzle, a digital payments platform, is trading more than 60% below its peak of $186 while witnessing over 400% growth in the last two years. The company expects EPS to increase 30% this year and 23% in FY27, with annual sales projected to exceed $500 million.
