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Regional Management Corp. (RM) Hit a 52 Week High, Can the Run Continue?
RMRegional Management(RM) ZACKS·2025-02-07 15:16

Company Performance - Regional Management's shares have increased by 10.3% over the past month, reaching a new 52-week high of 37.52[1]Thecompanyhasreporteda6.437.52 [1] - The company has reported a 6.4% gain since the start of the year, compared to the Zacks Finance sector's 6.6% and the Financial - Consumer Loans industry's 14.2% [1] Earnings and Revenue Expectations - For the current fiscal year, Regional Management is projected to achieve earnings of 5.29 per share on revenues of 625.35million,reflectinga27.78625.35 million, reflecting a 27.78% increase in EPS and a 6.26% increase in revenues [3] - For the next fiscal year, earnings are expected to rise to 6.77 per share on $673.86 million in revenues, indicating a year-over-year change of 28.04% in EPS and 7.76% in revenues [3] Valuation Metrics - The stock currently trades at 6.8X current fiscal year EPS estimates, below the peer industry average of 10.6X [7] - On a trailing cash flow basis, the stock trades at 12.5X compared to the peer group's average of 11.2X, suggesting it is not among the top value stocks [7] Zacks Rank and Style Scores - Regional Management holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, meeting the criteria for potential gains [8] - The company has a Value Score of A, a Growth Score of B, and a Momentum Score of D, resulting in a combined VGM Score of A [6] Industry Comparison - The Financial - Consumer Loans industry is positioned in the top 32% of all industries, indicating favorable conditions for both Regional Management and its peers [11] - Discover Financial Services, a competitor, has also shown strong performance with a Zacks Rank of 2 (Buy) and a significant earnings beat of 61.20% in the last quarter [10]