Have you been paying attention to shares of PROG Holdings (PRG)? Shares have been on the move with the stock up 24.1% over the past month. The stock hit a new 52-week high of $41.14 in the previous session. PROG Holdings has gained 37.1% since the start of the year compared to the 0.5% gain for the Zacks Finance sector and the -13% return for the Zacks Financial - Consumer Loans industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 18, 2026, PROG Holdings reported EPS of $0.74 versus consensus estimate of $0.6.
Valuation Metrics
While PROG Holdings 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 has run ahead of itself.
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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
PROG Holdings has a Value Score of A. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 10.3X. On a trailing cash flow basis, the stock currently trades at 0.9X versus its peer group's average of 7.8X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making PROG Holdings an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, PROG Holdings currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
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 PROG Holdings passes the test. Thus, it seems as though PROG Holdings shares could have a bit more room to run in the near term.
How Does PRG Stack Up to the Competition?
Shares of PRG 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 EZCORP, Inc. (EZPW). EZPW has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of D.
Earnings were strong last quarter. EZCORP, Inc. beat our consensus estimate by 37.50%, and for the current fiscal year, EZPW is expected to post earnings of $1.80 per share on revenue of $1.59 billion.
Shares of EZCORP, Inc. have gained 16% over the past month, and currently trade at a forward P/E of 14.04X and a P/CF of 10.61X.
The Financial - Consumer Loans industry is in the top 24% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PRG and EZPW, even beyond their own solid fundamental situation.
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Aaron's Holdings Company, Inc. (PRG): Free Stock Analysis Report EZCORP, Inc. (EZPW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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