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Curo Group (CURO) Hits 52-Week High, Can the Run Continue?
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Have you been paying attention to shares of CURO Group Holdings ? Shares have been on the move with the stock up 27% over the past month. The stock hit a new 52-week high of $16.17 in the previous session. CURO Group Holdings has gained 67% since the start of the year compared to the 16.7% move for the Zacks Finance sector and the 34.3% 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 October 24, 2019, Curo Group reported EPS of $0.71 versus consensus estimate of $0.57 while it missed the consensus revenue estimate by 0.83%.
For the current fiscal year, Curo Group is expected to post earnings of $2.8 per share on $1.15 billion in revenues. This represents a 50.54% change in EPS on a 4.84% change in revenues. For the next fiscal year, the company is expected to earn $3.03 per share on $1.23 billion in revenues. This represents a year-over-year change of 8.07% and 7.52%, respectively.
Valuation Metrics
Curo Group 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 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). 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. 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.
Curo Group has a Value Score of B. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 5.7X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 5.7X versus its peer group's average of 6.3X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Curo Group 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 Curo Group meets the list of requirements. Thus, it seems as though Curo Group shares could have a bit more room to run in the near term.
How Does Curo Group Stack Up to the Competition?
Shares of Curo Group have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Regional Management (RM - Free Report) , Encore Capital Group (ECPG - Free Report) , and OneMain Holdings (OMF - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 21% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Curo Group, even beyond its own solid fundamental situation.
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Curo Group (CURO) Hits 52-Week High, Can the Run Continue?
Have you been paying attention to shares of CURO Group Holdings ? Shares have been on the move with the stock up 27% over the past month. The stock hit a new 52-week high of $16.17 in the previous session. CURO Group Holdings has gained 67% since the start of the year compared to the 16.7% move for the Zacks Finance sector and the 34.3% 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 October 24, 2019, Curo Group reported EPS of $0.71 versus consensus estimate of $0.57 while it missed the consensus revenue estimate by 0.83%.
For the current fiscal year, Curo Group is expected to post earnings of $2.8 per share on $1.15 billion in revenues. This represents a 50.54% change in EPS on a 4.84% change in revenues. For the next fiscal year, the company is expected to earn $3.03 per share on $1.23 billion in revenues. This represents a year-over-year change of 8.07% and 7.52%, respectively.
Valuation Metrics
Curo Group 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 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). 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. 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.
Curo Group has a Value Score of B. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 5.7X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 5.7X versus its peer group's average of 6.3X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Curo Group 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 Curo Group meets the list of requirements. Thus, it seems as though Curo Group shares could have a bit more room to run in the near term.
How Does Curo Group Stack Up to the Competition?
Shares of Curo Group have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Regional Management (RM - Free Report) , Encore Capital Group (ECPG - Free Report) , and OneMain Holdings (OMF - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 21% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Curo Group, even beyond its own solid fundamental situation.