Shares of PROG Holdings (PRG) have been strong performers lately, with the stock up 9.7% over the past month. The stock hit a new 52-week high of $41.75 in the previous session. PROG Holdings has gained 40.1% since the start of the year compared to the 3.2% gain for the Zacks Finance sector and the -11.7% return for the Zacks Financial - Consumer Loans 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 29, 2026, PROG Holdings reported EPS of $1.24 versus consensus estimate of $0.78.
For the current fiscal year, PROG Holdings is expected to post earnings of $4.7 per share on $3.04 in revenues. This represents a 33.9% change in EPS on a 23.68% change in revenues. For the next fiscal year, the company is expected to earn $5.3 per share on $3.23 in revenues. This represents a year-over-year change of 12.77% and 6.27%, respectively.
Valuation Metrics
While PROG Holdings 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 is due for a pullback from this level.
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.
PROG Holdings has a Value Score of A. The stock's Growth and Momentum Scores are B and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 8.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.1X. On a trailing cash flow basis, the stock currently trades at 0.9X versus its peer group's average of 8.2X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making PROG Holdings an interesting choice for value investors.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, PROG Holdings currently has a Zacks Rank of #1 (Strong 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 PROG Holdings meets the list of requirements. Thus, it seems as though PROG Holdings shares could have potential in the weeks and months to come.
How Does PRG Stack Up to the Competition?
Shares of PRG 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 Enova International, Inc. (ENVA). ENVA has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of D.
Earnings were strong last quarter. Enova International, Inc. beat our consensus estimate by 5.74%, and for the current fiscal year, ENVA is expected to post earnings of $16.43 per share on revenue of $3.74 billion.
Shares of Enova International, Inc. have gained 34.3% over the past month, and currently trade at a forward P/E of 13.18X and a P/CF of 16.13X.
The Financial - Consumer Loans industry is in the top 19% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PRG and ENVA, even beyond their own solid fundamental situation.
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This article originally published on Zacks Investment Research (zacks.com).