Group 1 - Encore Capital Group, Inc. will release its financial results for Q2 2025 on August 6, 2025, after market close [1] - A conference call will be held on the same day at 2:00 p.m. Pacific / 5:00 p.m. Eastern time, featuring key executives discussing the results [1] - The public can access the live webcast via Encore's Investor Relations page, and a replay will be available shortly after the call [2] Group 2 - Encore Capital Group is an international specialty finance company providing debt recovery solutions and related services for consumers [3] - The company purchases portfolios of consumer receivables from major banks, credit unions, and utility providers [3] - Encore operates with a Consumer Bill of Rights, offering industry-leading commitments to consumers [4]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum [2] Group 2: Encore Capital Group (ECPG) Analysis - ECPG has shown a price increase of 4.1% over the past four weeks, indicating growing investor interest [3] - The stock gained 47.3% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - ECPG has a beta of 1.59, suggesting it moves 59% higher than the market in either direction [4] - ECPG has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - ECPG is trading at a Price-to-Sales ratio of 0.68, indicating it is relatively cheap at present [6] - ECPG appears to have significant potential for further price appreciation [7] Group 3: Additional Investment Opportunities - Other stocks also meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles to help identify winning stock picks [8]

Encore Overview Encore Capital Group, Inc. November 2024 Legal Disclaimers The statements in this presentation that are not historical facts, including, most importantly, those statements preceded by, or that include, the words "will," "may," "believe," "projects," "expects," "anticipates" or the negation thereof, or similar expressions, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). These statements may include, but are ...

Core Viewpoint - The article emphasizes the importance of the Zacks Rank system and the Style Scores system in identifying undervalued stocks, particularly focusing on value investing strategies. Group 1: Zacks Rank and Value Investing - The Zacks Rank system focuses on earnings estimates and revisions to identify strong stocks [1] - Value investing is a popular method for finding undervalued stocks using fundamental analysis and traditional valuation metrics [2] - The Style Scores system allows investors to find stocks with specific traits, with a particular emphasis on the "Value" category for value investors [3] Group 2: Encore Capital Group (ECPG) Analysis - Encore Capital Group (ECPG) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential [4] - ECPG's current P/E ratio is 5.13, significantly lower than the industry average of 9.72, suggesting it may be undervalued [4] - The Forward P/E for ECPG has fluctuated between 4.14 and 9.37 over the past 12 months, with a median of 6.34 [4] - ECPG's P/S ratio is 0.66, compared to the industry's average P/S of 1.42, further indicating undervaluation [5] - Overall, ECPG is highlighted as one of the market's strongest value stocks based on its earnings outlook and valuation metrics [6]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum [2] Group 2: Encore Capital Group (ECPG) Analysis - ECPG has shown a four-week price change of 10.6%, indicating growing investor interest [3] - Over the past 12 weeks, ECPG's stock gained 10.4%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - ECPG has a beta of 1.65, suggesting it moves 65% more than the market in either direction [4] - ECPG has a Momentum Score of B, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - ECPG is trading at a Price-to-Sales ratio of 0.64, suggesting it is undervalued at 64 cents for each dollar of sales [6] Group 3: Investment Opportunities - ECPG is highlighted as a strong candidate for investment, with potential for further price appreciation [7] - Other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria are also available for consideration [7] - Zacks offers over 45 Premium Screens to help identify winning stock picks based on various investing styles [8]

Shares of Encore Capital Group (ECPG) have gained 11.1% over the past four weeks to close the last trading session at $39.04, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $57.25 indicates a potential upside of 46.6%.The average comprises four short-term price targets ranging from a low of $55 to a high of $61, with a standard deviation of $2.63. While the lowest estimate indi ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional va ...

Core Insights - Encore Capital Group, Inc. (ECPG) shares have increased by 24.3% since the release of first-quarter 2025 results, driven by rising collections and strong portfolio purchasing, although higher expenses have partially offset these gains [1] Financial Performance - ECPG reported adjusted earnings per share (EPS) of $1.93 for Q1 2025, exceeding the Zacks Consensus Estimate by 55.7% and improving from $0.95 in the prior year [1] - Revenues increased by 19.6% year over year to $392.8 million, surpassing the consensus mark by 5.5% [2] - Total debt purchasing revenues rose by 20.8% year over year to $366.7 million, while servicing revenues increased by 10.6% to $22.5 million, beating the consensus estimate of $20 million [3] Collections and Expenses - Collections grew by 18% year over year to $604.8 million, exceeding the consensus estimate of $583.3 million, supported by strong portfolio purchasing and a stable collections environment [4] - Total operating expenses rose by 8% year over year to $263.4 million, driven by increased salaries, legal collection costs, and general administrative expenses [4] Interest and Net Income - Interest expenses increased by 26.5% year over year to $70.5 million, while net income surged by 101% year over year to $46.8 million [5] - Global portfolio purchases reached $367.9 million, up from $295.7 million a year ago, with $316.4 million deployed in the United States [5] Financial Position - As of March 31, 2025, total assets were $5 billion, up from $4.8 billion at the end of 2024, while cash and cash equivalents decreased to $187.1 million [5][6] - Borrowings increased to $3.8 billion from $3.7 billion, and total liabilities rose to $4.2 billion from $4 billion at the end of 2024 [6] - Total equity increased to $819.1 million from $767.3 million at the end of 2024 [6] Share Repurchase and Guidance - ECPG repurchased $10 million worth of shares in Q1 2025 [7] - Management expects portfolio purchasing to exceed $1.35 billion in 2025 and collections to grow by approximately 11% to $2.4 billion [8] Zacks Rank - ECPG currently holds a Zacks Rank 2 (Buy) [9]

Core Viewpoint - Encore Capital Group (ECPG) has shown a significant price increase of 38.2% over the past four weeks, with a mean price target of $58.50 indicating a potential upside of 44.4% from the current price of $40.51 [1] Price Targets and Analyst Consensus - The average price target for ECPG ranges from a low of $55 to a high of $66, with a standard deviation of $5.07, suggesting a relatively high agreement among analysts [2] - The lowest estimate indicates a potential increase of 35.8%, while the most optimistic estimate suggests a 62.9% upside [2] - Analysts' price targets should be approached with caution, as they may not always accurately reflect future stock movements [3][7] Earnings Estimates and Analyst Optimism - Analysts have shown strong agreement in revising ECPG's earnings estimates higher, which is a positive indicator for potential stock upside [4][11] - The Zacks Consensus Estimate for the current year has increased by 11.8% over the past month, with three estimates revised upward and no negative revisions [12] - ECPG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Conclusion on Investment Potential - While the consensus price target may not be a reliable indicator of the extent of ECPG's potential gains, the direction implied by these targets appears to be a useful guide for further research [13]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value ...