Shares of FirstCash Holdings (FCFS) have been strong performers lately, with the stock up 13.1% over the past month. The stock hit a new 52-week high of $230.72 in the previous session. FirstCash has gained 41.1% since the start of the year compared to the -10.1% gain for the Zacks Business Services sector and the -15.9% return for the Zacks Financial Transaction Services industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 23, 2026, FirstCash reported EPS of $2.69 versus consensus estimate of -$999900.
Valuation Metrics
While FirstCash has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
FirstCash has a Value Score of B. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 19.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.7X. On a trailing cash flow basis, the stock currently trades at 13.1X versus its peer group's average of 7.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, FirstCash currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if FirstCash passes the test. Thus, it seems as though FirstCash shares could have potential in the weeks and months to come.
How Does FCFS Stack Up to the Competition?
Shares of FCFS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Sezzle Inc. (SEZL). SEZL has a Zacks Rank of #1 (Strong Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of B.
Earnings were strong last quarter. Sezzle Inc. beat our consensus estimate by 15.32%, and for the current fiscal year, SEZL is expected to post earnings of $4.98 per share on revenue of $573.05 million.
Shares of Sezzle Inc. have gained 44.4% over the past month, and currently trade at a forward P/E of 20.03X and a P/CF of 26.17X.
The Financial Transaction Services industry is in the top 37% of all the industries we have in our universe, so it looks like there are some nice tailwinds for FCFS and SEZL, even beyond their own solid fundamental situation.
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FirstCash Holdings, Inc. (FCFS): Free Stock Analysis Report
Sezzle Inc. (SEZL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).