Cash America International, Inc. continues to benefit from the weak economy, recently reporting strong Q2 results that included an 18% increase in earnings from last year. With a bullish growth projection and high industry rank, this Zacks #1 Rank stock is cashing in on momentum.
Cash America International, Inc. provides specialty financial and pawn services in the United States and Mexico. The company was founded in 1984 and has a market cap of $1.65 billion.
CSH has seen big gains over the last few weeks in the bullish market, helped by strong Q3 results from October 20 that came in ahead of expectations.
Revenue for the period was up 21% from last year to $235 million. Earnings came in at $1.08, directly in line with the Zacks Consensus Estimate, where the company has either beat or matched estimates in each of the last four quarters.
The company saw a fairly balance performance from its two major segments, with pawn loan fees and merchandise sales up 21% from last year while consumer loan fees were up 22%. Its e-commerce segment was up 30% on a 152% increase in foreign e-commerce revenue.
Although the company's total debt increased $61 million to $492 million, cash and short-term investments were up $94 million to $490 million.
We haven't seen much movement in estimates off the good quarter, but as it stands the current-year estimate is projecting 15% earnings growth while the next-year estimate is pegged at $5.09, also a 15% growth projection.
With a PEG ratio of .83, CSH trades at a discount to the benchmark of 1 for value.
On the chart, shares recently rebounded from a trend line to move within 10% of the all-time high at $62. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Whisper Trader Service.