FirstCash Holdings (FCFS) Gains But Lags Market: What You Should Know

FirstCash Holdings (FCFS) closed at $89.06 in the latest trading session, marking a +1.2% move from the prior day. The stock lagged the S&P 500's daily gain of 1.89%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.

Heading into today, shares of the pawn store had gained 0.05% over the past month, lagging the Business Services sector's gain of 5.45% and the S&P 500's gain of 2.3% in that time.

Investors will be hoping for strength from FirstCash Holdings as it approaches its next earnings release, which is expected to be February 2, 2023. The company is expected to report EPS of $1.56, up 2.63% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $731.65 million, up 45.81% from the year-ago period.

Any recent changes to analyst estimates for FirstCash Holdings should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. FirstCash Holdings currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that FirstCash Holdings has a Forward P/E ratio of 14.14 right now. This valuation marks a discount compared to its industry's average Forward P/E of 14.15.

The Financial Transaction Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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