A strong stock as of late has been Ezcorp (EZPW). Shares have been marching higher, with the stock up 14.9% over the past month. The stock hit a new 52-week high of $26.35 in the previous session. Ezcorp has gained 29.7% since the start of the year compared to the 2.7% gain for the Zacks Finance sector and the -6.6% return for the Zacks Financial - Consumer Loans industry.
What's Driving the Outperformance?
The stock has a great 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 February 4, 2026, Ezcorp reported EPS of $0.55 versus consensus estimate of $0.4.
For the current fiscal year, Ezcorp is expected to post earnings of $1.8 per share on $1.59 in revenues. This represents a 25.87% change in EPS on a 24.38% change in revenues. For the next fiscal year, the company is expected to earn $2 per share on $1.75 in revenues. This represents a year-over-year change of 11.11% and 10.41%, respectively.
Valuation Metrics
While Ezcorp has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? 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). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Ezcorp has a Value Score of A. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 14X current fiscal year EPS estimates, which is a premium to the peer industry average of 10.4X. On a trailing cash flow basis, the stock currently trades at 10.6X versus its peer group's average of 8.2X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Ezcorp an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Ezcorp currently has a Zacks Rank of #1 (Strong Buy) thanks to a solid earnings estimate revision trend.
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 Ezcorp meets the list of requirements. Thus, it seems as though Ezcorp shares could still be poised for more gains ahead.
How Does EZPW Stack Up to the Competition?
Shares of EZPW 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 Enova International, Inc. (ENVA). ENVA has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of A.
Earnings were strong last quarter. Enova International, Inc. beat our consensus estimate by 8.13%, and for the current fiscal year, ENVA is expected to post earnings of $15.78 per share on revenue of $3.59 billion.
Shares of Enova International, Inc. have gained 0.3% over the past month, and currently trade at a forward P/E of 10.06X and a P/CF of 12.37X.
The Financial - Consumer Loans industry is in the top 20% of all the industries we have in our universe, so it looks like there are some nice tailwinds for EZPW and ENVA, even beyond their own solid fundamental situation.
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EZCORP, Inc. (EZPW): Free Stock Analysis Report Enova International, Inc. (ENVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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