Enova International (ENVA) Surges 11.7%: Is This an Indication of Further Gains?

Enova International (ENVA) shares rallied 11.7% in the last trading session to close at $157.92. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9.4% gain over the past four weeks.

Shares of Enova International have rallied for four consecutive trading sessions, reaching a new 52-week high of $161.29 in the most recent session. The advance was fueled by investor optimism following Enova’s announcement that it entered into a definitive agreement to acquire Grasshopper Bancorp, Inc., a full-service digital bank, for approximately $369 million in a mix of cash and stock.

The transaction brings together two complementary, market-leading platforms, combining Enova’s consumer and small-business online lending expertise with Grasshopper’s digital banking infrastructure. Scheduled to close in the second half of 2026, the deal is projected to be more than 15% accretive to adjusted earnings in the first year following closing, with accretion rising to 25% or more as synergies are fully realized in subsequent years.

This online financial services company is expected to post quarterly earnings of $3.20 per share in its upcoming report, which represents a year-over-year change of +22.6%. Revenues are expected to be $842.61 million, up 15.5% 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 #3 (Hold). 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, OneMain Holdings (OMF), closed the last trading session 3.5% higher at $69.62. Over the past month, OMF has returned 11.3%.

For OneMain, the consensus EPS estimate for the upcoming report has changed -2.5% over the past month to $1.6. This represents a change of +37.9% from what the company reported a year ago. OneMain currently has a Zacks Rank of #3 (Hold).

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

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