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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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, identified through the Zacks Momentum Style Score [2] Group 2: Encore Capital Group (ECPG) Analysis - Encore Capital Group (ECPG) has shown a four-week price change of 12.7%, indicating growing investor interest [3] - ECPG has gained 16.6% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.43, suggesting it moves 43% more than the market in either direction, indicating fast-paced momentum [4] - ECPG has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 1 (Strong 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 reasonably valued at 68 cents for each dollar of sales [6] 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 [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

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]