Enova International (ENVA) Hits Fresh Highs: Is There Still Room to Run?

Have you been paying attention to shares of Enova International, Inc. ENVA ? Shares have been on the move with the stock up 4.7% over the past month. ENVA hit a new 52-week high of $23.65 in the previous session. Enova International has gained 54% since the start of the year compared to the -2.1% move for the Finance sector and the -3.0% year-to-date return for its peer group.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on February 1, 2018, Enova International reported EPS of $0.26 versus the Zacks Consensus Estimate of $0.21 while it beat the consensus revenue estimate by 5.51%.

For the current fiscal year, Enova International is expected to post earnings of $2.01 per share on $974.34 million in revenues. This represents a 46.72% change in EPS on a 15.48% change in revenues. For the next fiscal year, the company is expected to earn $2.47 per share on $1.09 billion in revenues. This represents changes of 22.89% and 12.01%, respectively.

Valuation Metrics

Enova International may be at a 52-week high right now, but what might the future hold for ENVA? 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 they provide investors with an additional way to sort 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.

Enova International has a Value Score of A. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 11.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 12.1X versus its peer group's average of 9.7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Enova International, Inc. Price and Consensus

 

Enova International, Inc. Price and Consensus | Enova International, Inc. Quote

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Enova International currently has a Zacks Rank #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 and Style Scores of A or B, it looks as if Enova International fits the bill. Thus, it seems as though ENVA shares could still be poised for more gains ahead.

How Does Enova International Stack Up to the Competition?

Shares of Enova International have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including WRLD, CPSS, and PJT, all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.

The Zacks Industry Rank is in the top 49% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ENVA, even beyond its own solid fundamental situation.

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