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Enova International (ENVA) Soars 3.8%: Is Further Upside Left in the Stock?

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Enova International (ENVA - Free Report) shares soared 3.8% in the last trading session to close at $121.13. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.2% gain over the past four weeks.

With the Federal Reserve poised to cut interest rates today for the first time this year, investor sentiment toward the financial services sector has strengthened. Lower borrowing costs are expected to boost loan demand, positioning Enova International, a provider of credit to consumers and small businesses underserved by traditional banks, as a key beneficiary. This optimism drove ENVA stock higher.

This online financial services company is expected to post quarterly earnings of $3.04 per share in its upcoming report, which represents a year-over-year change of +24.1%. Revenues are expected to be $805.14 million, up 16.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Enova International, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ENVA going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Enova International belongs to the Zacks Financial - Consumer Loans industry. Another stock from the same industry, World Acceptance (WRLD - Free Report) , closed the last trading session 0.5% lower at $168.29. Over the past month, WRLD has returned 2.3%.

World Acceptance's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.87. Compared to the company's year-ago EPS, this represents a change of -53.1%. World Acceptance currently boasts a Zacks Rank of #4 (Sell).


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