Core Viewpoint - FirstCash Holdings (FCFS) reported quarterly earnings of $2.26 per share, exceeding the Zacks Consensus Estimate of $1.91 per share, and showing an increase from $1.67 per share a year ago, representing an earnings surprise of +18.32% [1][2] Financial Performance - The company achieved revenues of $935.58 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 11.43%, compared to $837.32 million in the same quarter last year [2] - Over the last four quarters, FirstCash has consistently surpassed consensus EPS estimates four times and topped revenue estimates two times [2] Stock Performance - FirstCash shares have increased approximately 42.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 17.2% [3] Future Outlook - The company's earnings outlook will be crucial for determining the sustainability of its stock price movement, with current consensus EPS estimates at $2.26 for the coming quarter and $8.04 for the current fiscal year [4][7] - The Zacks Rank for FirstCash is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Financial Transaction Services industry, to which FirstCash belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting that the overall industry outlook may impact stock performance [8]

Core Insights - FirstCash Holdings, Inc. reported record revenue and earnings for the three and nine months ended September 30, 2025, with a quarterly cash dividend of $0.42 per share and a new $150 million share repurchase plan announced [1][3]. Financial Performance - For the third quarter of 2025, revenue reached $935.6 million, a 12% increase from $837.3 million in the prior year [5][40]. - Net income for the third quarter was $82.8 million, up 28% from $64.8 million year-over-year, with diluted earnings per share increasing to $1.86 from $1.44 [5][8]. - Year-to-date revenue for the nine months ended September 30, 2025, was $2.6 billion, a 4% increase from $2.5 billion in 2024, with net income rising to $226.2 million from $175.3 million [7][40]. Segment Performance - The U.S. pawn segment saw same-store pawn receivables increase by 13%, while Latin America and the U.K. segments reported increases of 18% and 25%, respectively [2][14]. - The retail point-of-sale payment solutions segment, American First Finance (AFF), experienced strong earnings growth due to lower loss provisions and improved operating margins [2][31]. Growth and Expansion - The company completed the acquisition of H&T, the U.K.'s largest pawnbroker, adding 286 locations, and plans to open 20-25 new stores primarily in Latin America by January 2026 [3][13]. - FirstCash added a total of 332 pawn locations over the past twelve months, bringing the total to 3,311 locations across the U.S., Latin America, and the U.K. [13][32]. Cash Flow and Shareholder Returns - Operating cash flows for the twelve months ended September 30, 2025, grew 31% to $577 million, with adjusted free cash flows increasing 42% to $310 million [19][24]. - The company repurchased 230,000 shares for $30 million in the third quarter, totaling $90 million in repurchases year-to-date, and declared a quarterly dividend of $0.42 per share [20][33]. Outlook - The outlook for the remainder of 2025 is positive, with expected year-over-year growth in income driven by continued growth in earning asset balances and store additions [21][27]. - The company anticipates strong fourth-quarter performance, with expected revenues ranging from $85 to $90 million, driven by seasonal holiday shopping [28][30].

Core Viewpoint - FirstCash Holdings Inc. (NASDAQ:FCFS) is highlighted as a top credit services stock to consider amid the US rate cut, with a 'Buy' rating and a $200 price target set by analysts at Cannacord Genuity [1][2]. Company Overview - FirstCash operates over 3,300 pawnshops across the U.S., Latin America, and the UK, following its acquisition of H&T Group, positioning itself well in a lucrative industry [2]. - The company specializes in pawn stores that provide small loans secured by personal property, allowing borrowers to repay the loan with interest or forfeit their property without further consequences [3]. Industry Position - Analysts view the pawn business as strong and believe that FirstCash deserves a premium valuation due to its favorable market position [2].

Core Viewpoint - FirstCash Holdings (FCFS) is expected to report a year-over-year increase in earnings and revenues for the quarter ended September 2025, with the consensus outlook being crucial for assessing the company's earnings picture [1] Earnings Expectations - The consensus EPS estimate for FirstCash is $1.91 per share, reflecting a year-over-year increase of +14.4% [3] - Revenues are anticipated to be $839.63 million, which is a slight increase of 0.3% from the previous year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4] - The Most Accurate Estimate for FirstCash is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +3.67%, suggesting a bullish outlook from analysts [12] Earnings Surprise Prediction - A positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10] - FirstCash holds a Zacks Rank of 2, indicating a high likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, FirstCash exceeded the expected earnings of $1.66 per share by delivering $1.79, resulting in a surprise of +7.83% [13] - Over the past four quarters, FirstCash has consistently beaten consensus EPS estimates [14] Industry Context - In the Zacks Financial Transaction Services industry, Wex (WEX) is also expected to report earnings of $4.42 per share for the same quarter, with a year-over-year change of +1.6% and revenues of $679.81 million, up 2.2% [18] - Wex has an Earnings ESP of +0.65% and a Zacks Rank of 2, indicating a strong likelihood of surpassing the consensus EPS estimate [19]

Core Insights - FirstCash Holdings (FCFS) is positioned to potentially continue its earnings-beat streak in the upcoming report, supported by a strong history of exceeding earnings estimates [1][5] - The company has an average surprise of 13.06% over the past two quarters, indicating consistent performance above expectations [1][5] Earnings Performance - In the last reported quarter, FirstCash achieved earnings of $1.79 per share, surpassing the Zacks Consensus Estimate of $1.66 per share by 7.83% [2] - In the previous quarter, the company reported earnings of $2.07 per share against an expectation of $1.75 per share, resulting in a surprise of 18.29% [2] Earnings Estimates and Predictions - Recent changes in earnings estimates for FirstCash have been favorable, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8] - The current Earnings ESP for FirstCash is +3.67%, reflecting increased analyst optimism regarding its near-term earnings potential [8] Zacks Rank and Success Rate - FirstCash holds a Zacks Rank of 2 (Buy), which, when combined with a positive Earnings ESP, suggests a high probability of another earnings beat [8] - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% success rate in beating consensus estimates [6]

Core Viewpoint - FirstCash Hldgs Inc. stock has experienced a recent decline but shows significant growth over the past month and year, raising questions about its valuation despite current performance issues [1]. Group 1: Stock Performance - The current stock price of FirstCash Hldgs Inc. is $153.30, reflecting a decrease of 0.89% in the current market session [1]. - Over the past month, the stock has increased by 4.09%, and over the past year, it has risen by 33.54% [1]. Group 2: P/E Ratio Analysis - FirstCash Hldgs has a lower P/E ratio compared to the Consumer Finance industry average of 51.82, which may suggest that the stock is undervalued or expected to perform worse than peers [5][6]. - A lower P/E ratio can indicate either undervaluation or weak growth prospects, necessitating careful consideration by investors [9].

Core Idea - The article emphasizes the investment philosophy of Thomas W. Phelps, particularly his book "100 to 1 in the Stock Market," which advocates for buying exceptional companies early, holding them with discipline, and allowing compounding to generate wealth [1][4][6]. Phelps's Investment Framework - Phelps's framework focuses on identifying companies with durable advantages, such as network effects, proprietary know-how, and advantageous cost structures [8]. - The importance of verifying a large addressable market that allows for long-term compounding without hitting a wall is highlighted [8]. - Present-tense profitability is essential; Phelps preferred companies that generate cash rather than speculative ventures [8]. - The article suggests buying companies when their narratives are still forming, favoring modest valuations over those priced for perfection [8]. - A strategy of doing less is recommended, as holding onto winning investments can lead to tax deferral and reduced errors [8]. Current Investment Candidates - The article lists 25 companies that fit Phelps's criteria, categorized by how they create competitive advantages rather than by index labels [9]. - Companies in the construction and infrastructure sector, such as EMCOR Group and Quanta Services, are noted for their execution capabilities and ability to convert backlog into cash [10][11]. - Precision manufacturers like Celestica and Fabrinet are recognized for their high returns on capital and asset-light models [12]. - In network infrastructure, Arista Networks and Super Micro Computer are highlighted for their strong positions in high-speed switching and AI hardware, respectively [13]. - Companies in the materials sector, such as Martin Marietta Materials, are noted for their pricing power and local monopolies [14]. - Engineering firms like WSP Global are recognized for their expertise and customer relationships in regulated markets [15]. - Consumer brands like e.l.f. Beauty and Academy Sports are mentioned for their market share growth and operational efficiency [16]. - Specialty finance companies like FirstCash and software firms like Agilysys are noted for their cash generation and growth potential [17]. - Internationally, utilities like Sabesp and fintechs like StoneCo are highlighted for their governance and profitability improvements [18]. - UK companies like Spectris and Halma are recognized for their consistent acquisition strategies and operational excellence [19]. Conclusion - The article concludes that the focus should be on finding real engines of growth and sizing investments appropriately to endure market volatility, allowing time to enhance value [22].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of "buying high, hoping to sell even higher" [1] - The Zacks Momentum Style Score helps investors identify stocks with momentum by focusing on key metrics [2] Group 2: FirstCash Holdings (FCFS) Analysis - FirstCash Holdings currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy) [3][4] - FCFS shares have increased by 1.55% over the past week, while the Zacks Financial Transaction Services industry has risen by 2.47% [6] - Over the last quarter, FCFS shares have gained 9.8%, and 18.59% over the past year, outperforming the S&P 500's gains of 7.98% and 15.57%, respectively [7] - The average 20-day trading volume for FCFS is 385,679 shares, indicating a bullish sign if the stock rises with above-average volume [8] Group 3: Earnings Outlook - In the past two months, two earnings estimates for FCFS have moved higher, increasing the consensus estimate from $7.93 to $8.03 [10] - For the next fiscal year, two estimates have also moved upwards, with no downward revisions [10] Group 4: Conclusion - FCFS is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12]

Core Viewpoint - FirstCash Holdings (FCFS) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on a company's changing earnings picture, which is crucial for near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The upgrade for FirstCash indicates a positive outlook for its earnings, suggesting potential buying pressure and an increase in stock price [3][5]. - FirstCash is expected to earn $8.03 per share for the fiscal year ending December 2025, with a 1.3% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong track record of performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade of FirstCash to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Group 1: Company Performance - FirstCash Holdings (FCFS) has achieved a year-to-date return of approximately 32.9%, significantly outperforming the average return of -0.2% for the Business Services sector [4] - The Zacks Consensus Estimate for FCFS's full-year earnings has increased by 1.3% over the past three months, indicating improved analyst sentiment and a stronger earnings outlook [3] - FirstCash Holdings is part of the Financial Transaction Services industry, which has seen an average gain of 5.3% this year, further highlighting FCFS's superior performance within its industry [5] Group 2: Sector and Industry Comparison - The Business Services sector, which includes 254 individual stocks, is currently ranked 6 in the Zacks Sector Rank [2] - GigaCloud Technology Inc. (GCT), another stock in the Business Services sector, has outperformed with a year-to-date return of 70.1% [4] - The Technology Services industry, to which GigaCloud belongs, is ranked 93 and has experienced a year-to-date increase of 14.3% [6]