From Zacks Investment Research: 2025-05-15 14:12:00

Encore Capital Group, Inc. (ECPG) shares have surged 24.3% following its strong first-quarter 2025 results. Earnings per share of $1.93 beat estimates by 55.7%, with revenues rising 19.6% to $392.8 million. Debt purchasing revenues climbed 20.8% to $366.7 million, while collections grew 18% to $604.8 million. Operating expenses rose 8% to $263.4 million. Net income increased 101% to $46.8 million. Encore Capital reaffirmed its 2025 guidance, expecting growth in portfolio purchasing and collections. The company also repurchased $10 million worth of shares in Q1 2025. ECPG carries a Zacks Rank #2 (Buy).

In the broader Finance sector, other top-ranked stocks are Root Inc. (ROOT), EverQuote Inc. (EVER), and Heritage Insurance Holdings Inc. (HRTG), each with a Zacks Rank #1 (Strong Buy). Root’s current-year earnings estimate is $1.11 per share, with revenue expected to grow by 17.3% year-over-year. EverQuote’s earnings estimate is $1.17 per share, with revenue growth of 28%. Heritage Insurance’s earnings estimate is $3.25 per share, with revenue expected to grow by 4.6%. These companies have consistently beaten earnings estimates and are positioned for growth.



Read more at Zacks Investment Research: Encore Capital Q1 Earnings Top Estimates on Higher Portfolio Purchases – May 15, 2025