You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Regional Management (RM) to Open Its First Arizona Branch
Regional Management Corp. (RM - Free Report) announced that it intends to open its first branch in Arizona in the second quarter of 2023. It has already started lending operations in the state. With this move, RM brings 19 U.S. states under its operational coverage.
Until the new branches come online, the company is expected to service loans through its centralized sales and service teams. Regional Management continues to boost its geographical expansion while focusing on branch optimization. The latest move is expected to expand the consumer finance company’s footprint in the southwestern region.
Expansion to Arizona is expected to bump up Regional Management’s total addressable market size with more scope awaiting in the southwestern U.S. region. This is in line with the company’s geographic expansion strategy, which supports its market share growth.
The latest expansion will allow the company to offer its suite of affordable financial solutions to local consumers. Regional Management had $555 million remaining on credit revolvers at 2022-end, amplifying its financial flexibility to execute its long-term strategies like boosting its market reach and fund growth initiatives.
Last year, RM extended its operations to Idaho in December, Louisiana in September, Indiana at June-end and California in early August. With its latest expansion in Arizona, people with limited access to consumer credit are expected to benefit from the company’s secured credit products.
Shares of Regional Management have declined 6.7% in the year-to-date period against the 0.5% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Regional Management currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader finance space are Mr. Cooper Group Inc. (COOP - Free Report) , CNA Financial Corporation (CNA - Free Report) and Arch Capital Group Ltd. (ACGL - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The consensus mark for Mr. Cooper Group’s 2023 earnings indicates a 127.4% year-over-year increase. COOP beat earnings estimates in each of the past four quarters with an average of 200.7%.
The Zacks Consensus Estimate for CNA Financial’s 2023 earnings suggests 10.4% year-over-year growth. Also, the consensus mark for CNA’s 2023 revenues suggests 5.9% year-over-year growth.
The Zacks Consensus Estimate for Arch Capital’s 2023 earnings predicts 25.5% year-over-year growth. Over the past 30 days, ACGL has witnessed two upward estimate revisions against none in the opposite direction.