Here is a stock with buy rank and strong value characteristics for investors to consider today, Dec. 15:Encore Capital Group, Inc. (ECPG) : This specialty finance company providing debt recovery solutions carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 18.5% over the last 60 days.Encore Capital has a price-to-earnings ratio (P/E) of 5.45, compared with 25.06 for the S&P 500. The company possesses a Value Score of A. See the full list of top ra ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," rather than traditional strategies of buying low and waiting for recovery [1][2] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks can lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Encore Capital Group (ECPG) Analysis - Encore Capital Group (ECPG) has shown significant recent price momentum, with a four-week price change of 21.6%, indicating growing investor interest [4] - ECPG has gained 22.9% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - The stock has a beta of 1.43, suggesting it moves 43% more than the market in either direction, indicating fast-paced momentum [5] - ECPG holds a Momentum Score of B, suggesting it is an opportune time to invest in the stock [6] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - ECPG is trading at a Price-to-Sales ratio of 0.73, indicating it is relatively undervalued, as investors pay only 73 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides ECPG, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks [9]

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Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment Group 1: Company Earnings Estimates - Encore Capital Group, Inc. (ECPG) has seen its earnings estimate increase by 18.5% over the last 60 days [1] - PJT Partners Inc. (PJT) has experienced a 9.6% increase in its earnings estimate over the last 60 days [2] - Everus Construction Group, Inc. (ECG) has had its earnings estimate rise by 11.6% in the past 60 days [3] - United Fire Group, Inc. (UFCS) has seen a significant increase of 29.7% in its earnings estimate over the last 60 days [3] - BioLife Solutions, Inc. (BLFS) has experienced the largest increase, with a 40% rise in its earnings estimate over the last 60 days [4]

Core Insights - Encore Capital Group's shares surged 13.1% following the release of third-quarter 2025 results that exceeded Wall Street expectations significantly [1][2] Financial Performance - The company reported revenue of $460.4 million, reflecting a year-on-year increase of 25.4%, surpassing analyst forecasts by nearly 12% [2] - Earnings per share (EPS) reached $3.17, which is 60.1% higher than the consensus estimate of $1.98 [2] - The pre-tax profit margin for the quarter was 21.7%, an increase of 10.6 percentage points compared to the same period last year, indicating improved operational efficiency [2] Market Reaction - Encore Capital Group's shares have shown volatility, with 17 moves greater than 5% in the past year, suggesting that the recent news has significantly influenced market perception [4] - The stock had previously dropped 6.2% due to negative sentiment in the financial sector, particularly after Zions Bancorp disclosed a significant loan loss [4][5] Stock Performance - Since the beginning of the year, Encore Capital Group's stock is up 3.1%, trading at $48.46 per share, close to its 52-week high of $51.25 [6] - An investment of $1,000 in Encore Capital Group's shares five years ago would now be valued at $1,546 [6]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - Encore Capital Group (ECPG) reported quarterly earnings of $3.17 per share, exceeding the Zacks Consensus Estimate of $1.92 per share, and up from $1.26 per share a year ago [1] - The earnings surprise for the quarter was +65.10%, following a previous quarter surprise of +72.92% [2] - The company achieved revenues of $460.35 million for the quarter, surpassing the Zacks Consensus Estimate by 11.75% and increasing from $367.07 million year-over-year [3] Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - The current consensus EPS estimate for the upcoming quarter is $1.97, with expected revenues of $416.61 million, and for the current fiscal year, the estimate is $8.31 on $1.64 billion in revenues [8] Stock Performance and Outlook - Encore Capital Group shares have declined approximately 14% year-to-date, contrasting with the S&P 500's gain of 15.1% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Financial - Consumer Loans industry, to which Encore Capital Group belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Financial Data and Key Metrics Changes - Portfolio purchases in Q3 2025 were $346 million, up 23% compared to Q3 2024 [4] - Collections increased 20% to a record $663 million [4] - Average receivable portfolios rose 16% to $4.2 billion [4] - Estimated remaining collections (ERC) increased 10% to a record $9.5 billion [4] - Earnings per share for Q3 were $3.17, up more than 150% compared to Q3 2024 [4] - Leverage improved to 2.5 times at the end of Q3, compared to 2.7 times a year ago [4][19] Business Line Data and Key Metrics Changes - Midland Credit Management (MCM) in the U.S. saw portfolio purchases of $261 million in Q3, a 13% increase year-over-year [12] - MCM collections reached a record $502 million, up 25% compared to Q3 last year [12] - Cabot Credit Management's portfolio purchases were $85 million, higher than historical trends, with collections of $160 million, up 8% year-over-year [15] Market Data and Key Metrics Changes - U.S. revolving credit remains near record levels, with elevated charge-off rates driving robust portfolio supply [10] - Annualized net charge-off volume in the U.S. was estimated at $55 billion, significantly higher than previous lows [11] - U.S. consumer credit delinquencies remain near multi-year highs, indicating favorable purchasing conditions [11] Company Strategy and Development Direction - The company employs a three-pillar strategy focusing on large markets, competitive advantages, and a strong balance sheet [8] - The focus remains on purchasing portfolios in the U.S. market, where 75% of capital was deployed in Q3 [9] - The company aims to maintain a strong balance sheet and flexible capital allocation, prioritizing portfolio purchases and share repurchases [22] Management's Comments on Operating Environment and Future Outlook - Management noted stable consumer behavior despite macroeconomic uncertainties, with no significant impact on payment plans [48] - The company expects to exceed its 2024 purchasing guidance of $1.35 billion, driven by strong market conditions [30][23] - Future cash efficiency margin is expected to be around 58% for 2025 [19] Other Important Information - The company repurchased $10 million of shares in Q3 and nearly $25 million in Q4, totaling approximately $60 million year-to-date [6] - An additional $300 million was authorized for share repurchases, reflecting confidence in future prospects [6][23] - Interest expense is expected to be approximately $295 million for 2025 [19] Q&A Session Summary Question: Insights on fourth-quarter portfolio purchases - Management confirmed that the U.S. market remains solid with no changes in forward flows, expecting to exceed the $1.35 billion guidance [30] Question: Comparison with peers on purchasing - Management indicated that if peers are deploying less, it creates opportunities for the company to increase returns [32] Question: Collections multiples for U.S. and U.K. core paper - Collections multiple for both U.S. and Cabot is 2.3, stable throughout the year [36] Question: Impact of new technologies on operations - Management highlighted that new technologies and digital enhancements are driving significant improvements in collections [41] Question: Sustainability of collections overperformance - Management expressed confidence in the sustainability of collections performance, driven by MCM's strong results [64] Question: Future acquisition opportunities - Management stated that while acquisition opportunities are considered, the bar is high, and current focus remains on portfolio purchases [68]

Financial Data and Key Metrics Changes - Portfolio purchases in Q3 2025 were $346 million, up 23% compared to Q3 2024 [4] - Collections increased 20% to a record $663 million [4] - Average receivable portfolios rose 16% to $4.2 billion [4] - Estimated remaining collections (ERC) increased 10% to a record $9.5 billion [4] - Earnings per share for Q3 were $3.17, up more than 150% compared to Q3 2024 [4] - Leverage improved to 2.5x at the end of Q3, compared to 2.7x a year ago [4][19] Business Line Data and Key Metrics Changes - Midland Credit Management (MCM) in the U.S. saw portfolio purchases of $261 million, a 13% increase compared to Q3 2024 [12] - MCM collections in Q3 reached a record $502 million, up 25% year-over-year [12] - Cabot Credit Management's portfolio purchases were $85 million, higher than historical trends [15] - Cabot collections increased 8% to $160 million compared to Q3 2024 [15] Market Data and Key Metrics Changes - U.S. revolving credit remains near record levels, with elevated charge-off rates driving robust portfolio supply [10] - Annualized net charge-off volume in the U.S. was estimated at $55 billion, over three times the volume in Q4 2021 [11] - U.S. consumer credit delinquencies remain near multi-year highs, indicating favorable purchasing conditions [11] Company Strategy and Development Direction - The company employs a three-pillar strategy focusing on large markets, competitive advantages, and a strong balance sheet [8] - The focus remains on purchasing portfolios in the U.S. market, which accounted for 75% of capital deployed in Q3 [9] - The company aims to maintain a strong balance sheet and a double-B debt rating while operating within a target leverage range of 2x-3x [21] Management's Comments on Operating Environment and Future Outlook - Management noted stable consumer behavior despite macroeconomic uncertainties, with no significant impact on payment plans [47] - The company expects to exceed its 2024 portfolio purchases of $999 million and anticipates collections to grow by approximately 18% to $2.55 billion in 2025 [22] - Management expressed confidence in the future prospects of the company, as reflected in recent share repurchases [6][21] Other Important Information - The company repurchased $10 million of shares in Q3 and nearly $25 million in Q4, totaling approximately $60 million year-to-date [6] - An additional $300 million was authorized for the share repurchase program [6] Q&A Session Summary Question: Insights on fourth-quarter portfolio purchases - Management confirmed that the U.S. market remains solid and robust, with no changes in forward flows, and expects to exceed the guidance of $1.35 billion [28][29] Question: Comparison with peers on purchasing - Management indicated that if peers are deploying less, it creates opportunities for the company to increase returns [30] Question: Collections multiples for U.S. and U.K. core paper - Collections multiple for both U.S. and Cabot is 2.3, stable throughout the year [34] Question: Impact of new technologies on operations - Management highlighted that new technologies and digital enhancements are driving significant improvements in collections, particularly for recent vintages [39] Question: Sustainability of collections overperformance - Management expressed confidence in the sustainability of collections performance, driven by MCM's strong operational execution [63] Question: Future acquisition opportunities - Management stated that while acquisition opportunities are regularly evaluated, the bar is high for pursuing them, focusing on generating value through portfolio purchases [66][67]