Sehgal said the company has been “more selective” in buying portfolios, with purchase price multiples (a proxy for gross portfolio yields) trending higher:Executive Vice President and CFO Rakesh Sehgal said PRA purchased $315 million of portfolios in the fourth quarter, including $112 million in the U.S., $157 million in Europe, and $45 million in other markets.Adjusted cash efficiency improved to 61% from 59% a year earlier, Sjöslund said, even as PRA invested $125 million in the U.S. legal collections cha ...

Economic Indicators - The number of Americans filing for initial jobless claims fell by 5,000 to 227,000, compared to the expected 222,000 [2] - U.S. existing home sales decreased by 8.4% month-over-month to a 16-month low of 3.91 million, weaker than the expected 4.16 million [2] - The Consumer Price Index (CPI) rose 2.4% annually, a notable drop from the previous month, with a monthly increase of 0.2% [5] Stock Market Performance - Wall Street's major indices ended in the red, with significant declines in the Magnificent Seven stocks, including Apple (AAPL) down 5% and Tesla (TSLA) down over 2% [4] - Cisco Systems (CSCO) plunged over 12% after reporting weaker-than-expected FQ2 adjusted gross margin and issuing tepid FQ3 guidance [4] - Equinix (EQIX) surged over 10% after issuing strong FY26 guidance, marking it as the top percentage gainer on the S&P 500 [4] Corporate Earnings - Notable companies such as Moderna (MRNA) and Advance Auto Parts (AAP) are set to release their quarterly results [6] - Pinterest (PINS) plunged over 19% in pre-market trading after reporting weaker-than-expected Q4 revenue and issuing below-consensus Q1 revenue guidance [13] - Applied Materials (AMAT) surged over 11% in pre-market trading after posting stronger-than-expected FQ1 results and issuing strong FQ2 guidance [13] International Market Developments - The Euro Stoxx 50 Index is down 0.09% as investors digest fresh corporate earnings reports and await key U.S. inflation data [7] - Eurozone's GDP growth for the fourth quarter stood at 0.3%, in line with preliminary estimates [8] - Spain's annual inflation rate eased more than expected in January, with CPI falling 0.4% month-over-month and rising 2.3% year-over-year [8] Pre-Market Movements - U.S. steel stocks slid in pre-market trading after reports of President Trump's plans to roll back some tariffs on steel and aluminum products, with Steel Dynamics (STLD) down over 4% [12] - Most chip stocks are moving lower in pre-market trading, with Micron Technology (MU) and Intel (INTC) falling more than 1% [12]

Company Overview - PRA Group, Inc is a global specialty finance company focused on acquiring and managing nonperforming loans, founded in 1996 as Portfolio Recovery Associates [4] - The company purchases defaulted consumer and commercial receivables at discounted rates from financial institutions, utilities, and other creditors [4] - PRA Group's core activities include first-party and third-party collections across various asset classes such as credit cards, auto loans, and utility receivables [5] Stock Performance - Shares of PRA Group (NASDAQ: PRAA) opened at $11.35, with a market cap of $442.82 million [1] - The stock has a 50-day simple moving average of $16.04 and a 200-day simple moving average of $15.76 [1] - The stock has experienced a 12-month low of $10.99 and a high of $23.97 [1] Analyst Ratings - Truist Financial lowered its price target on PRA Group from $33.00 to $26.00 while maintaining a "buy" rating [2] - Citigroup downgraded PRA Group from "outperform" to "market perform" [2] - The average rating for PRA Group is currently "Hold" with an average price target of $25.00 [2] Institutional Investment - Tower Research Capital LLC increased its position in PRA Group by 375.1% in the second quarter, now owning 4,784 shares valued at $71,000 [3] - Other institutional investors, including Globeflex Capital L P and iSAM Funds UK Ltd, have also acquired new positions in PRA Group, with investments ranging from approximately $102,000 to $160,000 [3] - 97.22% of PRA Group's stock is currently owned by institutional investors and hedge funds [3]

Core Viewpoint - Alerus (ALRS) reported quarterly earnings of $0.85 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and showing a significant increase from $0.44 per share a year ago, resulting in an earnings surprise of +48.26% [1] Financial Performance - Alerus posted revenues of $63.35 million for the quarter ended December 2025, which was 10.9% below the Zacks Consensus Estimate and a decrease from $72.16 million in the same quarter last year [2] - Over the last four quarters, Alerus has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Alerus shares have increased by approximately 6.4% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Future Outlook - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.57 for the upcoming quarter and $2.52 for the current fiscal year [4][7] - The estimate revisions trend for Alerus was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which Alerus belongs, is currently in the top 40% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Core Insights - Futu Holdings Limited (FUTU) experienced an 86.3% year-over-year increase in revenues in Q3 2025, with brokerage commission and handling charges rising by 90.6% [1][8] - The company is transitioning towards a "one-stop" financial ecosystem to navigate market volatility [1] Revenue and Income - Interest income reached $391.3 million, closely matching brokerage commissions of $374.5 million, indicating a successful diversification strategy [2][8] - The significant growth in interest income is attributed to margin financing, securities lending, and idle cash management [2] Crypto and Wealth Management - Crypto trading volume surged by 161% quarter-over-quarter, driven by a 90% increase in crypto assets and enhanced trading velocity [3] - Wealth management assets increased by 7.6% from the previous quarter, supported by inflows into money market and fixed income products [3] Product Innovation - The company introduced a self-service request-for-quote function for structured products, allowing professional investors to customize and trade products efficiently [4] Strategic Positioning - Futu Holdings aims to maintain revenue generation even during trading downturns by leveraging its one-stop strategy to attract customers through additional services that yield management and service fees [5] Stock Performance and Valuation - The stock price has increased by 106.6% over the past year, outperforming peers such as PRA Group and Virtu Financial, which saw declines of 15.2% and 2.4%, respectively [6][8] - FUTU's forward price-to-earnings ratio stands at 15.46, higher than PRA Group's 7.88 and Virtu Financial's 7.55 [10] Earnings Estimates - The Zacks Consensus Estimate for FUTU's earnings for 2025 and 2026 has risen by 8.9% and 9.4%, respectively, over the last 60 days [13]

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage growth companies [1][2] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is preferred over the price-to-earnings (P/E) ratio because sales are harder to manipulate than earnings [7] Investment Opportunities - Low P/S stocks can offer compelling opportunities, often trading below their intrinsic value, making them attractive for investors seeking upside potential [3] - Companies with low P/S ratios and improving fundamentals are highlighted as having discounted valuations [10] Screening Parameters - Stocks should have a P/S ratio less than the median for their industry, a P/E ratio below the industry median, and a debt-to-equity ratio lower than the industry median [9][11] - Stocks must trade at a minimum price of $5 and have a Zacks Rank of 1 (Strong Buy) or 2 (Buy) to qualify for investment consideration [12] Company Profiles - **Hamilton Insurance Group, Ltd. (HG)**: A specialty insurance and reinsurance company benefiting from strong execution and a clear growth roadmap, with gross premiums written rising significantly [12][13] - **Macy's Inc. (M)**: Undergoing a transformation with its Bold New Chapter program, focusing on digital initiatives and omnichannel retailing, currently holding a Value Score of A and Zacks Rank 2 [14][15] - **GIII Apparel Group (GIII)**: A designer and distributor of apparel focusing on product differentiation and international expansion, with owned brands generating higher margins [16][17] - **Green Dot (GDOT)**: A pro-consumer bank holding company with a strong position in prepaid cards and Banking-as-a-Service, expanding its addressable market with low debt and significant cash reserves [18][20] - **PRA Group (PRAA)**: A global financial services company focusing on non-performing loans, benefiting from strategic acquisitions and a positive purchasing environment [21][22]

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage companies [1][2][3] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is often preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7] Investment Opportunities - Low P/S stocks can offer compelling opportunities, often trading below their intrinsic value, making them attractive for investors seeking upside potential [3][10] - Companies such as Hamilton Insurance Group, Macy's Inc., Cognizant Technology Solutions, PCB Bancorp, and PRA Group have low P/S ratios and potential for higher returns [4][10] Company Profiles - **Hamilton Insurance Group**: Operates in specialty insurance and reinsurance, benefiting from strong execution and a clear growth roadmap, with gross premiums written rising significantly [12][13] - **Macy's Inc.**: Undergoing a transformation with its Bold New Chapter program, focusing on digital initiatives and omnichannel retailing, currently holds a Value Score of A and Zacks Rank 2 [14][15] - **Cognizant Technology Solutions**: A leading professional services company with strong growth in Health Sciences and Financial Services, bolstered by acquisitions and AI initiatives [16][17] - **PCB Bancorp**: Offers a range of banking products and services, strategically positioned for sustained growth, currently holds a Value Score of A and Zacks Rank 2 [18][19] - **PRA Group**: Focuses on the purchase and management of non-performing loans, benefiting from strategic acquisitions and a positive purchasing environment, currently holds a Value Score of A and Zacks Rank 2 [20][21]

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage companies [1][2][10] - Low P/S stocks often trade below their intrinsic value, making them attractive for investors seeking growth at a discount [3][6] - The P/S ratio is preferred over the price-to-earnings (P/E) ratio due to its reliability, as sales are harder to manipulate than earnings [7][10] Company Highlights - **Hamilton Insurance Group, Ltd. (HG)**: Operates in specialty insurance and reinsurance, benefiting from strong execution and a clear growth roadmap. The company has a Zacks Rank 1 and a Value Score of A, with gross premiums written rising significantly [12][13] - **Macy's Inc. (M)**: Undergoing a transformation through its "Bold New Chapter" program, focusing on digital initiatives and omnichannel retailing. The company has a Zacks Rank 2 and a Value Score of A [14][15] - **Cognizant Technology Solutions (CTSH)**: A leading professional services company with strong growth in Health Sciences and Financial Services. The acquisition of Belcan is enhancing its portfolio, and it holds a Zacks Rank 2 with a Value Score of A [16][17] - **PCB Bancorp (PCB)**: Offers a range of banking products and services, with a focus on small and medium-sized businesses. The company has a Zacks Rank 2 and a Value Score of A, positioning it for sustained growth [18][19] - **PRA Group (PRAA)**: Engaged in the purchase and management of non-performing loans, benefiting from strategic acquisitions and a positive purchasing environment. The company has a Zacks Rank 2 and a Value Score of A [20][21]

Core Insights - Three stocks with strong momentum and buy rankings are highlighted for investors: Flex Ltd., Insulet Corporation, and PRA Group, Inc. [1][2][3] Company Summaries - **Flex Ltd. (FLEX)**: - Provides design, engineering, manufacturing, and supply chain services to original equipment manufacturers - Holds a Zacks Rank 1 with a 5.4% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days - Shares increased by 27.3% over the last three months, outperforming the S&P 500's 6% gain, and has a Momentum Score of A [1][2] - **Insulet Corporation (PODD)**: - Specializes in insulin delivery systems - Also holds a Zacks Rank 1 with a 6.5% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days - Shares gained 6.7% over the last three months, matching the S&P 500's performance, and has a Momentum Score of A [2] - **PRA Group, Inc. (PRAA)**: - Operates in the financial services sector - Holds a Zacks Rank 1 with a 9.9% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days - Shares increased by 11.5% over the last month, compared to the S&P 500's 3% gain, and has a Momentum Score of B [3]

Group 1 - Preferred Bank (PFBC) has seen a 5.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Weatherford International plc (WFRD) has experienced an 8.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Insulet Corporation (PODD) has recorded a 6.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - PRA Group, Inc. (PRAA) has seen a 9.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Alexander's, Inc. (ALX) has experienced a 7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2]