EZCORP, Inc - Aggressive Growth
April 26 2011 - 8:00PM
Zacks
EZCORP Inc. (EZPW) is not just a great growth story, shares
have value and momentum characteristics as well.
This Zacks #1 Rank (Strong Buy) is coming off of a great
earnings surprise and estimates are on the rise. The company and
analysts are all looking for a very strong year.
Company Description
EZCORP operates more than 1,000 stores in North America, about
half are pawn stores and the other half are short-term consumer
loan stores. They also have investments in a couple international
companies that offer similar services.
"Robust Results"
On Apr 21 the company reported what it called another quarter of
"robust results" from each of its segments. As demand remains
strong for their business, net revenues jumped 19%, to $131
million. Same store sales grew 12%.
Net income was up 34% on a year over year basis, to $31.8
million. That broke down to $0.63 per share, beating the Zacks
Consensus Estimates by 6 cents. EZCORP has now topped forecasts in
each of the past 3 quarters and has not missed since mid 2009.
Raised Guidance
The only thing better than an earnings surprise is when a
company raises its guidance and EZPW did just that. EZCORP now is
looking to earn $2.55 per share this year, up 15 cents from its
previous guidance.
Analysts quickly raised their forecasts, which are now averaging
the same as EZPW's, showing a 30% growth rate. Next year's
estimates are up 13 cents, to and average of $2.94. That will give
them a 15% growth rate in 2012.
Valuations are Good
You won't need to take out a loan to pick up shares of EZPW. The
stock trades at just 12 times forward estimates and with a PEG
ratio of 0.7, both showing great value.
The Chart
Shares of EZPW took a plunge about 3 weeks ago when Texas
lawmakers put a cap on short-term loans. But you can see that
investors quickly got over that news and shares have plenty of
momentum here.
EZCORP (NASDAQ:EZPW)
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