EZPW - EZCorp: Don't Chase At These Levels
2024-05-02 13:27:27 ET
Summary
- EZCorp Inc. is a small-cap stock known for its pawn loan activities in the US and Latin America.
- EZPW's PLO (Pawn loan outstanding) growth has been coming in at a commendable pace, given the challenging economic environment, and the favorable momentum of precious metals.
- While the environment for pawn activities is favorable, EZPW may not be a great buy due to a slower pace of earnings growth, and expensive P/E valuations.
- EZPW is also unlikely to benefit from rotational interest in the small-cap financial space, and there's been a spike in short interest and insider selling of late.
- The risk-reward on the standalone charts does not look favorable either.