Amid coronavirus pandemic, it seems to be a wise idea to add CURO Group Holdings Corp. CURO stock to your portfolio now, given the strength in its fundamentals and solid growth prospects. Also, its earnings growth prospects are impressive.

The company has been witnessing upward estimate revisions, reflecting analysts’ optimism about its earnings growth potential. Over the past 30 days, the Zacks Consensus Estimate for 2020 earnings has displayed an upward trend.

This Zacks Rank #2 (Buy) stock has depreciated 59.3%, in the last six months, compared with the industry’s decline of 42.3%.

Why is CURO Group a Golden Egg?  

Revenue Strength: The company has been witnessing continued improvement in revenues. Over the past five years (ended 2019), total revenues witnessed a compound annual growth rate (CAGR) of 8.9%.

This upward trend is expected to continue in 2020 at a growth rate of 3.5%, supported by a decent lending scenario and CURO Group’s efforts to grow loans.

Steady Capital-Deployment Activities: The company remains committed to enhancing shareholders’ value. This February, the board authorized a new share-buyback program of up to $25 million, to be made from time-to-time in the open market and/or in privately-negotiated transactions. Moreover, quarterly cash dividend program was initiated.

Earnings per Share Growth: CURO Group’s earnings for 2020 are projected to increase 14.1% compared with the industry’s average of 2.4%. This earnings momentum is likely to continue in the near term, as reflected by the company’s impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average positive surprise being 16.4%.

The company has a Growth Score of A. Our research shows that stocks with the combination of a Style Score of A or B, and a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.

Superior Return on Equity (ROE): CURO Group’s ROE of 271.2%, compared with the industry’s 16.7% average, highlights the company’s commendable position over its peers.

Stock Looks Undervalued: CURO Group looks undervalued, with respect to price/earnings (P/E) (F1) and price/sales (P/S) ratios. It has a P/E (F1) ratio of 1.68, which is below the industry average of 4.22. Also, its P/S ratio of 0.2 is lower than the industry average of 0.73.

Additionally, the stock currently has a Value Score of A. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount.

Other Stocks to Consider

Northrim BanCorp Inc NRIM has witnessed upward earnings estimate revisions for 2020 over the past 60 days. Moreover, this Zacks #2 Ranked stock has lost 30.2% over the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.

First Western Financial, Inc.’s MYFW current-year earnings estimate moved north in 60 days’ time. Further, the company’s shares have declined 14.3% over the past six months. At present, it sports a Zacks Rank of 1.

Encore Capital Group, Inc ECPG has witnessed upward earnings estimate revision for 2020 in the past 60 days. This Zacks #2 Ranked stock has depreciated 27.5% over the past six months.

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