Key Takeaways Enova International is highlighted among four stocks showing improving cash flow trends this earnings season.CMPR benefits from rising cash flows as demand grows for customized print and digital products.DNOW and PRSU also screen well, supported by increasing cash flows and improving earnings estimates.The Q4 earnings season is in full swing, and investors are now interested in betting on stocks based on profit numbers and surprises. Looking beyond profits and figuring out a company’s ability ...

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in short-term investing, highlighting that while price momentum can be profitable, ensuring its longevity is crucial for success [1][2]. Group 1: Stock Performance - Enova International (ENVA) has shown a solid price increase of 35.7% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also maintained a price increase of 6.2% over the last four weeks, suggesting that the upward trend is still intact [5]. - ENVA is currently trading at 104.1% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - ENVA holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. - The Zacks Rank system has a strong historical performance, with Rank 1 stocks generating an average annual return of +25% since 1988 [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks with sufficient fundamental strength to maintain their upward trends [3]. - In addition to ENVA, there are other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting further investment opportunities [8]. - The Zacks Research Wizard can assist investors in backtesting stock-picking strategies to ensure past profitability [9].

Core Insights - Investors favor businesses with consistent profitability, measured effectively by net profit margin, which indicates a company's efficiency in converting sales into profits [1][2] Company Analysis - **Enova International, Inc. (ENVA)**: A financial technology company providing online financial services to non-prime consumers and small businesses. It has a Zacks Rank of 1 and a VGM Score of A. The 2026 earnings estimate has been revised upward by 3.3% to $14.72 per share, with an average earnings surprise of 8.66% over the last four quarters [9][10] - **RF Industries, Ltd. (RFIL)**: Engaged in the design and manufacture of coaxial connectors for various applications. It holds a Zacks Rank of 1 and a VGM Score of B. The fiscal 2026 earnings estimate has been revised upward by $0.08 to $0.43 per share, with an average earnings surprise of 74.31% over the last four quarters [11][12] - **Interactive Brokers Group, Inc. (IBKR)**: Operates as an automated global electronic broker specializing in various financial instruments. It has a Zacks Rank of 1 and a VGM Score of B. The 2026 earnings estimate has been revised upward by $0.12 to $2.35 per share, with an average earnings surprise of 11.95% over the last four quarters [13][14] - **Remitly Global, Inc. (RELY)**: A mobile-first provider of remittances and financial services for immigrants. It carries a Zacks Rank of 2 and a VGM Score of A. The 2026 earnings estimate remains unchanged at $0.34 per share, with an average earnings surprise of 127.38% over the last four quarters [14][15] Investment Criteria - A healthy net profit margin and solid EPS growth are critical for investment attractiveness. Additional screening parameters include a net margin of at least 0%, positive EPS growth, and a strong broker rating [6][7][8]

Blue Tower Asset Management, an asset management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy delivered its best results so far in 2025, outperforming the market on both an absolute and relative basis. In Q4 2025, the Blue Tower Global Value strategy delivered 13.15% net (13.46% gross), bringing the 2025 returns to 53.11% (54.75% gross). Enova and Georgia Capital (CGEO) were the leading performance contributors in Q4 and 2025, with Eno ...

Core Insights - Enova International, Inc. has demonstrated strong financial performance with a significant earnings per share (EPS) of $3.46, exceeding estimates and showing a year-over-year improvement [2][6] - The company reported quarterly revenues of $839.39 million, reflecting a notable increase from the previous year, despite a slight miss against the Zacks Consensus Estimate [3][6] - Enova's strategic acquisition of Grasshopper Bancorp, Inc. aims to enhance its online lending platform by integrating digital banking capabilities, indicating a forward-looking growth strategy [5][6] Financial Performance - Enova's EPS of $3.46 surpassed the estimated $3.17, marking an earnings surprise of +8.24% and a significant increase from the $2.61 EPS reported in the same quarter last year [2] - Quarterly revenues of $839.39 million represent a 15% rise compared to the fourth quarter of 2024 and a 15% increase from $729.55 million reported a year ago [3] - The company achieved a 32% increase in originations, showcasing its expanding market presence [3] Credit Performance and Liquidity - Enova's net charge-off ratio stands at 8.3%, with a net revenue margin of 60%, indicating robust credit performance [4] - The consolidated 30+ day delinquency ratio improved to 6.7%, reflecting a stable credit outlook [4] - As of December 31, 2025, Enova holds $1.1 billion in cash, marketable securities, and available capacity on facilities, demonstrating a strong liquidity position [4] Strategic Direction - The acquisition of Grasshopper Bancorp, Inc. is expected to close in the second half of 2026, enhancing Enova's service offerings by merging its online lending platform with Grasshopper's digital banking capabilities [5] - Enova's market valuation includes a price-to-earnings (P/E) ratio of approximately 13.43 and a price-to-sales ratio of about 1.28, reflecting investor confidence in its earnings and sales potential [5]

The report is based on responses from 468 small businesses with working capital loans and over 3.45 million small business applications for working capital financing during the past 15 months. The nationwide survey was completed between December 15–23, 2025. For more information and complete survey results, please visit: ondeck.com/small-business-trends. 94% of small businesses anticipate growth over the next year as owners invest in efficiency and plan ahead amid evolving market conditions CHICAGO, Jan. 28 ...

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Cunningham said Enova delivered “another exceptional year,” citing 27% origination growth in 2025 that led to nearly 20% revenue growth. He added that stable credit and operating leverage drove adjusted EPS growth of 42% for the year. He emphasized that 2025 marked the second consecutive year of adjusted EPS growth above 30%, which he attributed to Enova’s diversified products, online-only model, and risk management and technology capabilities.Cunningham said the two companies are operating “business as usu ...

Core Viewpoint - Enova International (ENVA) reported quarterly earnings of $3.46 per share, exceeding the Zacks Consensus Estimate of $3.2 per share, and showing a year-over-year increase from $2.61 per share [1] Financial Performance - The company achieved revenues of $839.39 million for the quarter ended December 2025, which was slightly below the Zacks Consensus Estimate by 0.38%, but an increase from $729.55 million in the same quarter last year [2] - Over the last four quarters, Enova has surpassed consensus EPS estimates four times and topped revenue estimates twice [2] Stock Performance and Outlook - Enova International shares have increased by approximately 0.9% since the beginning of the year, while the S&P 500 has gained 1.5% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $3.54 for the upcoming quarter and $14.25 for the current fiscal year [7] Industry Context - The Financial - Consumer Loans industry, to which Enova belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Enova's stock may be influenced by the overall industry outlook, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - For the full year of 2025, originations grew by 27%, leading to revenue growth of nearly 20%, and adjusted EPS growth of 42% [9][11] - Fourth quarter revenue increased by 15% year-over-year to $839 million, with adjusted EPS rising 33% to $3.46 per diluted share [11][31] - The consolidated net charge-off ratio for the fourth quarter was 8.3%, down from the previous year [12][24] Business Line Data and Key Metrics Changes - Small Business products represented 68% of the portfolio, while Consumer accounted for 32% [10] - Small Business originations increased by 48% year-over-year to $1.6 billion, with revenue growth of 34% to $383 million [14][22] - Consumer originations grew by 2% year-over-year to $613 million, with revenue increasing by approximately 3% to $446 million [23][22] Market Data and Key Metrics Changes - The unemployment rate decreased to 4.4% in December, indicating a stable labor market [12] - The NFIB Small Business Optimism Index rose to 99.5 in December, reflecting positive expectations among small business owners [16] Company Strategy and Development Direction - The company plans to close the acquisition of Grasshopper Bank, which is expected to enhance its product offerings and operational model under a national bank charter [18][19] - The focus for 2026 includes generating sustainable and profitable growth while driving long-term shareholder value [17][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate varying operating environments and highlighted the resilience of its business model [17][34] - The outlook for 2026 anticipates growth in originations of around 15%, with adjusted EPS growth of at least 20% [33] Other Important Information - The company ended the fourth quarter with approximately $1.1 billion of liquidity, providing financial flexibility [29] - Marketing expenses for the fourth quarter were 23% of total revenue, reflecting a strategic investment to capture demand [11][26] Q&A Session Summary Question: Can you discuss the Consumer business growth and its acceleration? - Management noted that Consumer growth accelerated in December, driven by strong demand and credit performance, with expectations for continued strength into early January [36][38] Question: What changes are anticipated in the core portfolio prior to closing the Grasshopper acquisition? - Management indicated that operations would continue as usual until the transaction closes, with a focus on expanding the product set post-acquisition [40][42] Question: What is the expected mix between Consumer and Small Business growth in 2026? - Management expects a balanced growth approach, with a potential tilt towards Small Business due to strong demand, while also anticipating a resumption of Consumer growth [46][47] Question: Any changes in underwriting or industry focus for Small Business? - Management confirmed ongoing adjustments in underwriting, maintaining a stable credit profile, and keeping a close eye on industries like construction and transportation [50][51] Question: What are the implications of potential rate caps on consumer finance? - Management views potential rate caps positively, suggesting they could reduce availability for underserved customers, positioning the company as an alternative [78][80]