Strength Seen in Enova International (ENVA): Can Its 11.7% Jump Turn into More Strength?

Enova International (ENVA) shares soared 11.7% in the last trading session to close at $96.24. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.9% loss over the past four weeks.

Enova International shares rallied sharply, benefiting from broad market strength following President Donald Trump’s announcement of a 90-day suspension on tariffs for non-retaliating countries. The policy shift eased trade tensions and improved market sentiment, fueling a sharp uptick in ENVA stock.

This online financial services company is expected to post quarterly earnings of $2.77 per share in its upcoming report, which represents a year-over-year change of +45%. Revenues are expected to be $727.3 million, up 19.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Enova International, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ENVA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Enova International belongs to the Zacks Financial - Consumer Loans industry. Another stock from the same industry, Discover (DFS), closed the last trading session 15.3% higher at $170.85. Over the past month, DFS has returned -6.1%.

For Discover

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This article originally published on Zacks Investment Research (zacks.com).

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