Have you ever been taking note of shares of Ezcorp (EZPW)? Shares have been on the transfer with the replenish 10.4% over the previous month. The inventory hit a brand new 52-week excessive of $12.23 within the earlier session. Ezcorp has gained 39.8% because the begin of the 12 months in comparison with the 17.4% transfer for the Zacks Finance sector and the 15.9% return for the Zacks Monetary – Client Loans business.
What’s Driving the Outperformance?
The inventory has an incredible report of constructive earnings surprises, because it hasn’t missed our earnings consensus estimate in any of the final 4 quarters. In its final earnings report on July 31, 2024, Ezcorp reported EPS of $0.23 versus consensus estimate of $0.22.
For the present fiscal 12 months, Ezcorp is anticipated to put up earnings of $1.13 per share on $1.16 billion in revenues. This represents a 22.83% change in EPS on a ten.14% change in revenues. For the subsequent fiscal 12 months, the corporate is anticipated to earn $1.23 per share on $1.24 billion in revenues. This represents a year-over-year change of 8.85% and seven.62%, respectively.
Valuation Metrics
Ezcorp could also be at a 52-week excessive proper now, however what may the long run maintain for the inventory? A key facet of this query is having a look at valuation metrics so as to decide if the corporate is due for a pullback from this stage.
On this entrance, we are able to have a look at the Zacks Type Scores, as they supply traders with an extra strategy to type by shares (past wanting on the Zacks Rank of a safety). These types are represented by grades operating from A to F within the classes of Worth, Progress, and Momentum, whereas there’s a mixed VGM Rating as properly. Buyers ought to think about the model scores a priceless software that may make it easier to to select essentially the most acceptable Zacks Rank shares based mostly on their particular person funding model.
Ezcorp has a Worth Rating of A. The inventory’s Progress and Momentum Scores are C and F, respectively, giving the corporate a VGM Rating of B.
By way of its worth breakdown, the inventory at present trades at 10.8X present fiscal 12 months EPS estimates, which isn’t in-line with the peer business common of 10.8X. On a trailing money circulation foundation, the inventory at present trades at 6.5X versus its peer group’s common of seven.1X. This is not sufficient to place the corporate within the high echelon of all shares we cowl from a price perspective.
Zacks Rank
We additionally want to take a look at the Zacks Rank for the inventory, as this supersedes any development on the model rating entrance. Luckily, Ezcorp at present has a Zacks Rank of #1 (Robust Purchase) because of rising earnings estimates.
Since we suggest that traders choose shares carrying Zacks Rank of 1 (Robust Purchase) or 2 (Purchase) and Type Scores of A or B, it seems to be as if Ezcorp meets the checklist of necessities. Thus, it appears as if Ezcorp shares might have potential within the weeks and months to return.
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EZCORP, Inc. (EZPW) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
