Have you been paying attention to shares of Enova International (ENVA Quick QuoteENVA - Free Report) ? Shares have been on the move with the stock up 5.2% over the past month. The stock hit a new 52-week high of $55.77 in the previous session. Enova International has gained 43.3% since the start of the year compared to the 7.3% move for the Zacks Finance sector and the 26.5% return for the Zacks Financial - Consumer Loans industry.

What's Driving the Outperformance?

The stock has an impressive 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 April 25, 2023, Enova International reported EPS of $1.79 versus consensus estimate of $1.58.

For the current fiscal year, Enova International is expected to post earnings of $7.56 per share on $2.01 billion in revenues. This represents a 11.01% change in EPS on a 15.75% change in revenues. For the next fiscal year, the company is expected to earn $8.73 per share on $2.23 billion in revenues. This represents a year-over-year change of 15.48% and 11.17%, respectively.

Valuation Metrics

Enova International may be at a 52-week high right now, but what might the future hold for the stock? 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). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Enova International has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 7.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 9.4X. On a trailing cash flow basis, the stock currently trades at 6.8X versus its peer group's average of 6.6X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Enova International currently has a Zacks Rank of #1 (Strong 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 Enova International passes the test. Thus, it seems as though Enova International shares could have a bit more room to run in the near term.

How Does ENVA Stack Up to the Competition?

Shares of ENVA 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 Regional Management Corp. (RM Quick QuoteRM - Free Report) . RM has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of D, and a Momentum Score of D.

Earnings were strong last quarter. Regional Management Corp. beat our consensus estimate by 76.47%, and for the current fiscal year, RM is expected to post earnings of $4.13 per share on revenue of $545.57 million.

Shares of Regional Management Corp. have gained 10.4% over the past month, and currently trade at a forward P/E of 8.14X and a P/CF of 6.35X.

The Financial - Consumer Loans industry is in the top 12% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ENVA and RM, even beyond their own solid fundamental situation.