July 22, 2026 16:05 ET | Source: Encore Capital Group, Inc.
SAN DIEGO, July 22, 2026 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq: ECPG) (“Encore” or the “Company”), an international specialty finance company, announced today that on July 22, 2026 (the “Redemption Notice Date”), it has issued a notice (the “Redemption Notice”) to holders of the Company’s 4.00% Convertible Senior Notes due 2029 (CUSIP No. 292554 AP7) (the “Notes”), calling all $230.0 million aggregate principal amount of the Notes for redemption on September 24, 2026 (the “Redemption Date”). The Company’s redemption right in respect of the Notes arises pursuant to Section 14.07 of the Indenture, dated as of March 3, 2023 (the “Indenture”), between the Company and Truist Bank, as trustee (the “Trustee”), as a result of the last reported sale price per share of the Company’s common stock having exceeded 130% of the conversion price on each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the trading day immediately before the Redemption Notice Date.
Redemption Process
The redemption price will be payable on the Redemption Date in cash and equal to 100% of the principal amount of the Notes outstanding on the Redemption Date, plus accrued and unpaid interest on such Notes to, but excluding, the Redemption Date (the “Redemption Price”). For each $1,000 principal amount of Notes, the Redemption Price will be equal to approximately $1,001. Unless the Company defaults in making payment of the Redemption Price, interest on the Notes will cease to accrue on and after the Redemption Date.
For all Notes surrendered in book-entry form, payment of the Redemption Price will be made through the facilities of The Depository Trust Company (“DTC”), and all redeemed Notes in book-entry form will be surrendered for payment of the Redemption Price in accordance with the applicable rules and procedures of DTC.
Right to Convert the Notes
Holders of the Notes may surrender their Notes (or any portion thereof having a principal amount that is an integral multiple of $1,000) for conversion at any time prior to 5:00 p.m. (New York City time) on September 22, 2026 or, if the Company fails to pay the Redemption Price on the Redemption Date, such later date on which the Redemption Price is paid. To convert any Note, the holder must comply with the applicable rules and procedures of DTC. Upon conversion, a holder will not receive any separate cash payment for accrued and unpaid interest, and the Company’s settlement of the conversion obligation shall be deemed to satisfy in full its obligation to pay the principal amount of the Note and accrued and unpaid interest to, but excluding, the relevant conversion date. Any Notes submitted for conversion after they are called for redemption will be settled in cash. Any Notes not converted prior to the applicable deadline will be redeemed for the Redemption Price on the Redemption Date and will thereafter be canceled and cease to be outstanding.
As of the Redemption Notice Date, the conversion rate of the Notes is 15.1763 shares of common stock per $1,000 principal amount of Notes, which is equivalent to a conversion price of approximately $65.89 per share.
The sending of the Redemption Notice to the holders of the Notes constitutes a “Make-Whole Fundamental Change” under the Indenture, and therefore the conversion rate is required to be increased in accordance with Section 13.03 of the Indenture for Notes surrendered for conversion during the period beginning on, and including, the Redemption Notice Date, and ending at 5:00 p.m. (New York City time) on September 22, 2026 (the “Make-Whole Conversion Period”). The conversion rate applicable to such conversions will be increased by 1.0293 additional shares to 16.2056 shares of common stock per $1,000 principal amount of Notes, which is equivalent to a conversion price of approximately $61.71 per share. The conversion rate will remain subject to adjustment in accordance with the Indenture from time to time upon the occurrence of certain events.
Truist Bank is acting as Trustee, paying agent and conversion agent under the Indenture, and its address is 2713 Forest Hills Road, Building 2 - Floor 2, Wilson, North Carolina 27893, Attention: Encore Capital Group – Client Manager – Patrick Giordano.
Holders who have questions or who wish to discuss the redemption may contact the Company’s Investor Relations representative by email at [email protected].
This press release does not constitute a notice of redemption under the Indenture. The Redemption Notice is being delivered to holders separately in accordance with the terms of the Indenture. This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful. No representation is made as to the correctness or accuracy of the CUSIP number either as printed on the notes or as contained in this press release.
Capped Call Transactions
In connection with the pricing of the Notes in February 2023, the Company entered into privately negotiated capped call transactions with certain financial institutions (the “option counterparties”). In connection with the redemption, the Company expects that the capped call transactions will unwind and terminate in full. In connection with any such unwind and termination, the Company would receive from each option counterparty an amount of cash (or shares of the Company’s common stock if agreed with the applicable option counterparty) reflecting the then-current option value of such capped call transaction, as determined pursuant to the terms of such transaction or as otherwise agreed with the Company. The Company expects to enter into bilateral unwind agreements with each option counterparty to unwind and terminate its respective capped call transaction as of or shortly following the Redemption Date, with a termination value determined based on the market price of the Company’s common stock over a valuation period expected to end shortly prior to the Redemption Date and payable to the Company on or shortly following the Redemption Date, in each case, subject to extension.
In connection with unwinding and terminating the capped call transactions, the option counterparties and/or their respective affiliates are expected to unwind various derivative transactions with respect to the Company’s common stock and/or sell shares of the Company’s common stock or other securities of the Company in secondary market transactions. This activity may have the effect of decreasing (or reducing the size of any increase in) the market price of the Company’s common stock.
About Encore Capital Group, Inc.
Encore Capital Group is an international specialty finance company that provides debt recovery solutions and other related services for consumers across a broad range of financial assets. Through its subsidiaries around the globe, Encore purchases portfolios of consumer receivables from major banks, credit unions, and utility providers.
Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a Consumer Bill of Rights that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at www.encorecapital.com.
The statements in this press release that are not historical facts, including, most importantly, those statements preceded by, or that include, the words “will,” “may,” “believe,” “projects,” “expects,” “anticipates” or the negation thereof, or similar expressions, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). These statements may include, but are not limited to, statements regarding our future operating results, performance, liquidity, ability to access capital markets, business plans or prospects. For all “forward-looking statements,” the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent reports on Forms 10-K and 10-Q, each as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements.
Encore Capital Group shares have surged 65% year-to-date, reflecting strong market momentum. The guidance for 2026 looks stellar. Collections at $2.8 billion, an increase of 8% YoY. Earnings guidance of $13.00 per share, an increase of 19% YoY. I see two key secular tailwinds as being persistent, not temporary: high total consumer loan volume, along with elevated charge-off rates. This alone warrants a small position, in my opinion.
July 06, 2026 16:05 ET | Source: Encore Capital Group, Inc.
SAN DIEGO, July 06, 2026 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq:ECPG), an international specialty finance company, announced today that it will release its financial results for the second quarter 2026 on Wednesday, August 5, 2026, after the market closes. The Company will also host a conference call and slide presentation the same day at 2:00 p.m. Pacific / 5:00 p.m. Eastern time with Ashish Masih, President and Chief Executive Officer, Tomas Hernanz, Executive Vice President and Chief Financial Officer, and Bruce Thomas, Vice President, Global Investor Relations, presenting and discussing the reported results.
Members of the public are invited to access the live webcast via the Internet by logging in on the Investor Relations page of Encore's website at www.encorecapital.com. To access the live conference call by telephone, please pre-register using this link. Registrants will receive confirmation with dial-in details.
For those who cannot listen to the live broadcast, a replay of the webcast will be available on the Company's website shortly after the call concludes.
About Encore Capital Group, Inc.
Encore Capital Group is an international specialty finance company that provides debt recovery solutions and other related services for consumers across a broad range of financial assets. Through its subsidiaries around the globe, Encore purchases portfolios of consumer receivables from major banks, credit unions, and utility providers.
Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a Consumer Bill of Rights that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at www.encorecapital.com.
Key Takeaways Encore Capital is benefiting from strong U.S. supply, elevated lending and near-peak charge-offs.ECPG's global collections rose 19% to a record $718.4 million in the first quarter of 2026.Tech gains are lifting collections, but legal costs, funding pressure and Cabot weakness remain risks. Encore Capital Group (ECPG - Free Report) is showing how the debt-recovery cycle is shifting. Strong U.S. supply and better collection tools are lifting results, while costs and funding remain pressure points.
The next phase depends on whether technology-driven collection gains can offset legal expense growth, Europe’s slower backdrop and higher interest costs.
How ECPG Reflects a Stronger U.S. Recovery CycleEncore’s U.S. business is benefiting from elevated lending activity, near-peak charge-off levels and stable delinquency trends. Those conditions are supporting a steady flow of receivable portfolios.
The U.S. cycle matters because debt buyers need both supply and capital to scale profitably. Encore’s size and funding flexibility help it compete as smaller buyers face regulatory and financing constraints.
The first quarter of 2026 showed that backdrop in action. Midland Credit Management, Encore’s U.S. platform, posted portfolio purchases of $315.8 million, one of its strongest U.S. purchasing quarters.
PRA Group, Inc. (PRAA - Free Report) gives investors a direct peer reference because it also acquires and collects nonperforming loans. For both companies, portfolio supply and collection efficiency are central to earnings.
How Encore Capital Uses Tech to Lift CollectionsTechnology is becoming more than an efficiency project. New tools, digital capabilities and operating innovation are helping Encore reach more consumers and expand its payer base.
That showed up in collections. Global collections rose 19% year over year to a record $718.4 million in the first quarter of 2026, while U.S. collections increased 23% to $556 million.
The company also collected $46 million more than forecast in the quarter. Changes in expected future recoveries were positive by $16.7 million, showing that outperformance is starting to affect future expectations.
Management expects the benefit to shift over time from cash overs to stronger portfolio revenue as Estimated Remaining Collections curves adjust upward. That would make the technology impact more visible in revenues.
The Zacks Consensus Estimate for ECPG’s sales suggests growth of 5.5% for 2026 and 2.7% for 2027.
Image Source: Zacks Investment Research
Why ECPG Faces a Cost and Margin TestThe same collection environment that supports recoveries can also raise costs. Legal collection activity has increased, and those expenses have been rising faster than overall expenses.
That matters because legal collections can carry a higher fixed and semi-variable cost base. If collection growth slows, the expense structure could weigh on operating leverage and reduce cash efficiency margins.
Encore’s first-quarter cash efficiency margin improved to 60.9% from 58.3% a year earlier. Maintaining that margin profile will require collections growth to stay ahead of cost pressure.
Funding is another test. Borrowings totaled $4.03 billion as of March 31, 2026, and interest expense and other income are projected at about $300 million in 2026.
Why Encore Capital Shows a Split Global BackdropEncore’s geographic story is uneven. The United States remains the growth engine, helped by portfolio supply and stable consumer payment behavior.
Cabot, the company’s European business, remains in a slower market. The U.K. faces subdued consumer lending, low delinquencies and robust competition, limiting purchase growth.
Cabot still delivered collections of $161 million in the first quarter, up 7% year over year. The business is focused on cost control and operational execution.
Disciplined capital deployment in Europe protects returns but leaves ECPG more dependent on U.S. conditions. FirstCash Holdings, Inc. (FCFS - Free Report) offers a different consumer-finance comparison because its business centers on pawn operations rather than charged-off receivable purchases, giving investors another view of consumer-credit exposure.
How ECPG’s Ratings Frame These TrendsThe bottom line is that ECPG enters 2026 with better collection momentum, but margin durability remains the key test. Legal costs, borrowing costs and Europe’s slower backdrop could limit the benefit if U.S. collections cool.
Encore Capital has rallied sharply, with shares up 58.1% year to date. The move reflects stronger collections, favorable U.S. purchasing conditions and improving earnings expectations.
Image Source: Zacks Investment Research
The ECPG stock currently sports a Zacks Rank #1 (Strong Buy). That supports the view that earnings estimate direction remains favorable. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Style Scores add nuance. ECPG has a Value Score of B, which supports the relative value case, but its VGM Score of C is less forceful.
The Growth Score of D and Momentum Score of F suggest investors should watch execution rather than treat the stock as an all-clear growth or momentum play. The central question is whether digital gains can keep outpacing margin and funding headwinds.
Key Takeaways ECPG has surged 56.2% in six months, but still trades at just 6.4X forward 12-month earnings.Encore Capital's first-quarter 2026 EPS beat estimates by 18.4%, while revenues rose 21%.ECPG's low multiple supports value appeal, but debt, legal costs and Cabot weakness remain risks. Encore Capital Group (ECPG - Free Report) is no longer a turnaround story waiting for proof. Shares have climbed 56.2% in the past six months and 120.4% over the trailing 12-month period.
The valuation question is now harder. Investors must decide whether low earnings multiples and higher profit forecasts still leave room for upside, or whether leverage and cost risks should cap the rerating.
Why ECPG Still Looks Cheap on EarningsECPG trades at 6.4X forward 12-month earnings, while its current fiscal-year price-to-earnings ratio is 6.6. That remains below 7.88X for the Zacks sub-industry, 16.29X for the Zacks Finance sector and 21.32X for the S&P 500 index.
The stock is also trading at its five-year median forward multiple of 6.4X, despite a stronger operating setup than it had during weaker collection periods. Its five-year range of 4.14X to 12.84X leaves room for a higher multiple if earnings quality continues to improve.
Image Source: Zacks Investment Research
PRA Group, Inc. (PRAA - Free Report) is the closest public comparison because it also acquires and collects nonperforming loan portfolios. That makes portfolio supply, funding access and recovery efficiency central issues for both companies. On the other hand, FirstCash Holdings, Inc. (FCFS - Free Report) offers a different way to view consumer-finance exposure. Its pawn-focused model depends less on charged-off receivable purchases, making it a useful contrast to ECPG’s debt-purchasing cycle.
At present, PRA Group and FirstCash Holdings are trading at a premium to ECPG.
How Encore Capital Earnings Are Moving HigherEncore’s latest quarter helped reset the earnings base. First-quarter 2026 earnings of $3.86 per share beat the Zacks Consensus Estimate by 18.4%, while revenues of $475 million rose 21% year over year.
The operating support was clear. Global collections increased 19% to a record $718.4 million, and the U.S. MCM business generated record collections of $556 million, up 23% from the prior-year quarter.
Management raised its 2026 earnings outlook to $13 per share from $12, implying 19% year-over-year growth. The consensus estimate shows earnings rising from $10.91 in 2025 to $13.01 in 2026 and $13.86 in 2027.
Image Source: Zacks Investment Research
What the ECPG Price Target ImpliesThe $99 price target reflects 7.38X forward earnings. That is not an aggressive multiple relative to the broader market, but it does imply some rerating from the current 6.40X forward 12-month level.
A modest multiple expansion could be supported if collection outperformance keeps flowing into results. Collections exceeded expectations in the first quarter, and positive changes in expected future recoveries suggest estimated remaining collection curves are beginning to move higher.
As those curves adjust, management expects more of the benefit to shift from cash overperformance into portfolio revenues. Stronger reported portfolio revenue can make earnings visibility more durable.
Why Encore Capital Is Not a Simple Value BetECPG’s low multiple comes with balance-sheet risk. Borrowings totaled $4.03 billion at the end of the first quarter, and the company depends on debt funding to purchase receivable portfolios.
Interest expense and other income are projected to total about $300 million in 2026. If borrowing costs remain elevated or portfolio returns normalize, the earnings benefit from higher collections could face pressure.
Legal collection costs are another margin risk. Rising legal activity can support recoveries, but it can also create fixed and semi-variable cost pressure if collections growth slows.
The business mix adds a limitation. The U.S. business is driving most of the momentum, while Cabot in Europe continues to face subdued lending, low delinquencies and strong competition.
How ECPG’s Scores Shape the Investment CallThe bottom line is that ECPG still looks inexpensive, but not risk-free. The earnings reset, low forward multiple and $99 price target support the undervaluation argument, while leverage, legal costs and geographic concentration keep the case selective.
ECPG currently sports a Zacks Rank #1 (Strong Buy), which supports the view that estimate trends remain favorable in the near term. Its Value Score of B also strengthens the bargain case for investors focused on valuation. You can see the complete list of today’s Zacks #1 Rank stocks here.
The rest of the style profile is less supportive. ECPG has a VGM Score of C, Growth Score of D and Momentum Score of F. That mix suggests the stock is better viewed as a selective value opportunity backed by earnings revisions, rather than an all-clear momentum play after a major rally.
Key Takeaways Encore Capital shares are up 58.1% year to date, driven by collections and U.S. supply strength.ECPG posted record first-quarter 2026 collections of $718.4 million, up 19% year over year.U.S. strength supports growth, while Cabot softness, legal costs and borrowings remain key risks. Encore Capital Group (ECPG - Free Report) has rallied sharply, with shares up 58.1% year to date. The move reflects stronger collections, favorable U.S. purchasing conditions and improving earnings expectations.
Image Source: Zacks Investment Research
The question is whether those drivers can keep working after the rebound. For now, ECPG’s outlook rests on supply, execution and funding discipline.
Why ECPG Benefits From U.S. Debt SupplyEncore is benefiting from a steady flow of receivable portfolios in the United States, its largest revenue contributor. Elevated lending activity, near-peak charge-offs and stable delinquency trends continue to support supply.
Scale matters in this environment. Smaller buyers remain pressured by regulatory challenges and limited funding access, while Encore’s balance sheet and funding flexibility help it compete for larger portfolios at attractive returns.
PRA Group, Inc. (PRAA - Free Report) is a relevant peer because it also acquires and collects nonperforming loan portfolios. Its presence keeps investor attention on portfolio supply, pricing and collections efficiency across the debt-purchasing industry.
How Encore Capital Is Turning Supply Into GrowthEncore converted favorable supply into record first-quarter 2026 collections of $718.4 million, up 19% year over year. MCM, its U.S. business, generated $556 million of collections, up 23%.
Management raised its 2026 global collections outlook to nearly $2.8 billion, representing 8% growth, while keeping global portfolio purchase guidance at $1.4-$1.5 billion. Higher forward flows should improve revenue visibility as the recently purchased portfolios season.
The Zacks Consensus Estimate for ECPG’s sales suggests growth of 5.5% for 2026 and 2.7% for 2027.
Image Source: Zacks Investment Research
What is ECPG’s Technological Drive ChangingTechnology is becoming a bigger part of the ECPG story. New tools, enhanced digital capabilities and operating innovation have helped the company reach more consumers, generate more payments and expand its payer book.
Collections exceeded forecasts by $46 million in the first quarter, and expected future recoveries increased by $16.7 million. Management expects future cash overperformance to shift gradually into portfolio revenues as collection forecasts adjust upward.
Where Encore Capital Still Looks VulnerableECPG’s U.S. strength also creates concentration risk. Cabot continues to face subdued consumer lending, low delinquencies and strong competition in Europe, limiting purchases and ERC growth.
Costs and leverage remain watch items. Rising legal collection activity could pressure margins if collections slow, while borrowings of $4.03 billion leave earnings sensitive to higher funding costs.
FirstCash Holdings, Inc. (FCFS - Free Report) offers a different consumer-finance comparison point, with pawn operations accounting for more than 90% of net revenues. Its model is less tied to charged-off receivable purchases, giving investors another way to view consumer-credit exposure.
How ECPG’s Ratings Fit the Bull CaseThe bottom line is balanced but constructive. Encore Capital’s U.S. purchasing strength, record collections and improving portfolio revenue setup support near-term investor interest, while Cabot softness, legal costs and debt funding keep the risk profile from looking one-sided.
ECPG currently sports a Zacks Rank #1 (Strong Buy). On the other hand, PRA Group and FirstCash Holdings carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
ECPG also has a Value Score of B, VGM Score of C, Growth Score of D and Momentum Score of F.
The Rank supports a favorable near-term earnings-revision backdrop. The Style Scores are mixed: value is the clearest positive, while weaker growth and momentum scores suggest the stock does not screen strongly across every factor.
Higher interest rates for a longer time and easing lending standards are brightening the outlook for the Zacks Consumer Loans industry. The Federal Reserve has paused rate cuts and signaled a hike amid signs of higher inflation. Yet, decent economic growth is expected to continue and even boost loan demand, supporting top-line growth.
While looser lending criteria and increased usage of technology are expanding the borrower base, subdued consumer confidence is a headwind. Nonetheless, industry players like Credit Acceptance Corporation (CACC - Free Report) , Enova International, Inc. (ENVA - Free Report) and Encore Capital Group, Inc. (ECPG - Free Report) are worth considering.
About the Industry The Zacks Consumer Loans industry comprises companies that provide mortgages, refinancing, home equity lines of credit, credit card loans, automobile loans, education/student loans and personal loans, among others. These help the industry players generate net interest income (NII), which forms the most important part of total revenues. The prospects of the companies in this industry are highly sensitive to the nation’s overall economic condition and consumer sentiments. In addition to offering the above-mentioned products and services, many consumer loan providers are involved in businesses like commercial lending, insurance, loan servicing and asset recovery. These support the companies in generating fee revenues. Furthermore, this helps the firms diversify revenue sources and be less dependent on the vagaries of the economy.
3 Themes Driving the Consumer Loan Industry's Future Interest Rates & Loan Demand: After lowering interest rates by 175 basis points since 2024, the Federal Reserve has paused its easing cycle and adopted a more hawkish stance. This shift reflects inflation remaining well above the central bank’s 2% target, exacerbated by the recent oil price shock stemming from geopolitical tensions in the Middle East. Additionally, consumer sentiment has remained weak since late 2025, with the Expectations Index staying below 80 for 16 consecutive months through May, a threshold that has historically signaled an elevated risk of recession. Despite these headwinds, demand for consumer loans is expected to remain resilient and gradually improve, supported by solid economic growth and a still-low unemployment rate. Consequently, industry participants are likely to benefit from continued expansion in net interest margins (NIM) and NII in the coming quarters.
Automation to Improve Operating Efficiency: Consumer loan providers are increasingly leveraging artificial intelligence (AI), machine learning (ML), robotic process automation and digital platforms to streamline loan origination, underwriting, servicing and customer onboarding. AI-driven credit assessment models analyze vast amounts of customer data in real time, enabling faster and more accurate lending decisions while reducing manual intervention, while digital onboarding tools lower acquisition costs and enhance customer experience. Meanwhile, AI-powered servicing and collections platforms improve operational efficiency and risk monitoring. These initiatives are expected to reduce processing expenses, support scalable growth and ultimately boost profitability through higher operating leverage and stronger returns.
Asset Quality: While lower interest rates have helped borrowers stay current on loan and interest repayments, persistent macroeconomic and geopolitical headwinds have kept inflation elevated. This has prompted the central bank to signal a potential rate hike later this year, which could somewhat weaken borrowers’ repayment capacity. As a result, consumer loan providers are likely to set aside substantial reserves for potential delinquencies. Moreover, several credit quality metrics are already trending above pre-pandemic levels.
Zacks Industry Rank Reflects an Optimistic Stance The Zacks Consumer Loans industry is a 12-stock group within the broader Zacks Finance sector. The industry currently carries a Zacks Industry Rank #30, which places it in the top 12% of more than 245 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates outperformance in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Looking at the aggregate earnings estimate revisions, it appears that analysts are confident in this group’s earnings growth potential. Over the past year, the industry’s earnings estimates for 2026 and 2027 have been revised upward by 2.9% and 9.6%, respectively.
Before we present a few stocks that you may want to add to your portfolio, let's take a look at the industry’s recent stock market performance and valuation picture.
Industry vs. Broader Market The Zacks Consumer Loans industry has impressively outperformed the Zacks S&P 500 composite and its sector over the past two years.
The stocks in this industry have collectively soared 67.6% over this period, while the Zacks S&P 500 composite and the Zacks Finance sector have risen 42.4% and 37.2%, respectively.
Two-Year Price Performance
Industry Valuation One might get a good sense of the industry’s relative valuation by looking at its price-to-book ratio (P/B), commonly used for valuing consumer loan stocks because of significant variations in their financial performance from one quarter to the next.
The industry currently has a trailing 12-month P/B of 0.74X, below the median level of 0.76X over the past five years. This compares with the highest level of 1.04X and the lowest level of 0.55X over this period. The industry is trading at a considerable discount compared with the market at large, as the trailing 12-month P/B for the S&P 500 is 8.11X and the median level is 8.01X.
Price-to-Book Ratio (TTM)
As finance stocks typically have a lower P/B, comparing consumer loan providers with the S&P 500 may not make sense to many investors. However, comparing the group’s P/B ratio with that of its broader sector ensures that the group is trading at a decent discount. The Zacks Finance sector’s trailing 12-month P/B of 4.53X for the same period is way above the Zacks Consumer Loan industry’s ratio, as the chart below shows.
Price-to-Book Ratio (TTM)
3 Consumer Loan Stocks to Bet on Credit Acceptance Corporation: Headquartered in Southfield, MI, CACC offers financing programs and related products and services to automobile dealers across the United States, enabling them to sell vehicles to consumers irrespective of their credit history. Further, it is engaged in the business of reinsuring coverage under vehicle service contracts sold to consumers by dealers on vehicles financed by the company.
Revenue growth remains a major positive for Credit Acceptance, with the same witnessing a five-year (2020-2025) compound annual growth rate (CAGR) of 6.8%. Growth is primarily attributable to a steady rise in finance charges, which is also the main revenue component (accounting for almost 93% of total revenues in the first quarter of 2026). While finance charges are likely to witness headwinds from macroeconomic factors in the near term, solid dealer engagement will offer much-needed support. A steady rise in dealer enrolments and active dealers is expected to support the company’s top-line growth.
CACC continues to execute on a product roadmap aimed at reducing friction for dealers and scaling underwriting and servicing capacity without a proportional increase in expenses. The company is witnessing a steady rise in inbound customer service and account solutions calls routed to the AI-enabled agent, with plans to expand its usage going forward. Additionally, dealer-facing digitization is gaining traction. Over time, these are expected to support higher dealer engagement and improve operating efficiency.
The Zacks Consensus Estimate for earnings for 2026 and 2027 suggests growth of 20.1% and 13.7%, respectively. Shares of this Zacks Rank #2 (Buy) company have jumped 25.8% over the past six months. It has a market cap of $6.1 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: CACC
Enova International: Based in Chicago, IL, Enova is a leading financial technology company focused on providing online financial services. The company caters to small businesses and capitalizes on its proprietary technology, analytics and customer service capabilities to underwrite and fund loans.
Being an early entrant into online lending, the company has completed almost 65 million customer transactions and collected approximately 66 terabytes of consumer behavior data since its launch in 2004. This has enabled Enova to better analyze its specific customer base and expand small and medium businesses (SMB) lending. This Zacks Rank #2 company’s proprietary underwriting systems leverage advanced risk analytics, including ML and AI.
Moreover, the company has been diversifying its operations, which will support its long-term growth. In December 2025, Enova agreed to acquire Grasshopper Bancorp, which will boost its earnings over time. This will also expand the company’s ability to deliver a more comprehensive suite of financial products through a national bank charter, expanding access to credit to those who were traditionally underserved by banks.
The Zacks Consensus Estimate for earnings for 2026 and 2027 indicates an increase of 26.8% and 23.7%, respectively. ENVA’s shares have gained 24.1% over the past six months. It has a market cap of $5 billion.
Price and Consensus: ENVA
Encore Capital: Based in San Diego, CA, ECPG provides debt recovery and related financial services worldwide. Through its global subsidiaries, the company acquires portfolios of charged-off consumer receivables from leading banks, credit unions and utility providers, leveraging data-driven strategies to optimize collections and portfolio performance.
Encore Capital plans to leverage its leadership position in portfolio purchasing and recovery as well as credit management services to bolster its market share worldwide. Over the years, the company’s portfolio purchases and collections have increased, which supported its top-line expansion.
With rising delinquency/charge-off rates in the United States due to higher rates, there is more supply of non-performing loans. This offers Encore Capital an additional opportunity to purchase portfolios and apply its analytics and collections capabilities for higher returns. With scale, funding access and demonstrated execution, the company is expected to continue capturing high-return supply, extending collections growth beyond tax seasonality into subsequent quarters.
The company’s operating engine is delivering consistent overperformance that is now beginning to embed into forward estimates. Encore Capital is witnessing steadily higher collections than the forecasts, as technology, digital and operational innovations lift early-stage collections. Over the next few quarters, management expects the mix to transition from cash overs to higher portfolio revenue as ERC curves adjust upward.
Shares of this Zacks Rank #1 company has soared 52.4% over the past six months. ECPG’s earnings are expected to rise 19.3% in 2026 and 6.5% in 2027. The company has a market cap of $1.8 billion.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Encore Capital Group (ECPG - Free Report) . ECPG is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 5.46. This compares to its industry's average Forward P/E of 7.40. Over the past 52 weeks, ECPG's Forward P/E has been as high as 9.37 and as low as 4.14, with a median of 5.49.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ECPG has a P/S ratio of 0.96. This compares to its industry's average P/S of 1.43.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Encore Capital Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ECPG feels like a great value stock at the moment.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, June 17:
Encore Capital Group, Inc. (ECPG - Free Report) : This finance company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 7.4% over the last 60 days.
Encore Capital Group has a price-to-earnings ratio (P/E) of 6.35 compared with 12.00 for the industry. The company possesses a Value Scoreof A.
Delek US Holdings, Inc. (DK - Free Report) : This integrated downstream energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 101.5% over the last 60 days.
Delek US Holdings has a price-to-earnings ratio (P/E) of 8.51 compared with 12.30 for the industry. The company possesses a Value Score of A.
DaVita Inc. (DVA - Free Report) : This kidney dialysis company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 6.1% over the last 60 days.
DaVita has a price-to-earnings ratio (P/E) of 13.92 compared with 27.00 for the industry. The company possesses a Value Score of A.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."
Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase, investors find themselves invested in shares that have limited to no upside or even a downside. So, betting on a stock just by looking at the traditional momentum parameters could be risky at times.
It could be safer to invest in bargain stocks that have been witnessing price momentum recently. While the Zacks Momentum Style Score (part of the Zacks Style Scores system), which pays close attention to trends in a stock's price or earnings, is pretty useful in identifying great momentum stocks, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
There are several stocks that currently pass through the screen and Encore Capital Group (ECPG - Free Report) is one of them. Here are the key reasons why this stock is a great candidate.
A dash of recent price momentum reflects growing interest of investors in a stock. With a four-week price change of 15%, the stock of this provider of debt-management and recovery services is certainly well-positioned in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. ECPG meets this criterion too, as the stock gained 40.3% over the past 12 weeks.
Moreover, the momentum for ECPG is fast paced, as the stock currently has a beta of 1.26. This indicates that the stock moves 26% higher than the market in either direction.
Given this price performance, it is no surprise that ECPG has a Momentum Score of B, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped ECPG earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, ECPG is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. ECPG is currently trading at 0.95 times its sales. In other words, investors need to pay only 95 cents for each dollar of sales.
So, ECPG appears to have plenty of room to run, and that too at a fast pace.
In addition to ECPG, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
Private Trust Co. NA raised its stake in shares of Encore Capital Group Inc (NASDAQ:ECPG – Free Report) by 6,206.9% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 7,316 shares of the asset manager’s stock after purchasing an additional 7,200 shares during the period. Private Trust Co. NA’s holdings in Encore Capital Group were worth $398,000 as of its most recent SEC filing.
Several other hedge funds and other institutional investors also recently added to or reduced their stakes in ECPG. Royal Bank of Canada grew its holdings in Encore Capital Group by 97.9% during the first quarter. Royal Bank of Canada now owns 33,620 shares of the asset manager’s stock valued at $1,153,000 after purchasing an additional 16,634 shares during the last quarter. AQR Capital Management LLC grew its holdings in Encore Capital Group by 263.0% during the first quarter. AQR Capital Management LLC now owns 68,860 shares of the asset manager’s stock valued at $2,361,000 after purchasing an additional 49,892 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Encore Capital Group by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,929 shares of the asset manager’s stock valued at $477,000 after purchasing an additional 612 shares during the last quarter. Empowered Funds LLC grew its holdings in Encore Capital Group by 2.0% during the first quarter. Empowered Funds LLC now owns 90,910 shares of the asset manager’s stock valued at $3,116,000 after purchasing an additional 1,806 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Encore Capital Group by 7.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 78,465 shares of the asset manager’s stock valued at $2,690,000 after purchasing an additional 5,672 shares during the last quarter.
Analysts Set New Price Targets ECPG has been the topic of several analyst reports. Citigroup reiterated an “outperform” rating on shares of Encore Capital Group in a report on Tuesday, January 20th. Northland Securities set a $70.00 price target on Encore Capital Group in a report on Thursday, January 22nd. Zacks Research upgraded shares of Encore Capital Group from a “hold” rating to a “strong-buy” rating in a research note on Friday, February 27th. Citizens Jmp raised their price objective on shares of Encore Capital Group from $75.00 to $90.00 and gave the stock a “market outperform” rating in a research note on Thursday, February 26th. Finally, Wall Street Zen upgraded shares of Encore Capital Group from a “buy” rating to a “strong-buy” rating in a research note on Saturday. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, Encore Capital Group has a consensus rating of “Buy” and a consensus price target of $75.50.
View Our Latest Research Report on ECPG
Insider Activity In other news, insider Ryan B. Bell sold 7,240 shares of the firm’s stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $69.04, for a total value of $499,849.60. Following the sale, the insider owned 48,170 shares in the company, valued at approximately $3,325,656.80. This trade represents a 13.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 2.54% of the company’s stock.
Encore Capital Group Stock Performance Shares of Encore Capital Group stock opened at $80.75 on Monday. The company’s fifty day simple moving average is $67.86 and its 200-day simple moving average is $56.69. The company has a market cap of $1.73 billion, a price-to-earnings ratio of 7.37 and a beta of 1.26. The company has a current ratio of 0.68, a quick ratio of 0.68 and a debt-to-equity ratio of 4.10. Encore Capital Group Inc has a 1 year low of $29.69 and a 1 year high of $81.77.
Encore Capital Group (NASDAQ:ECPG – Get Free Report) last announced its quarterly earnings data on Wednesday, February 25th. The asset manager reported $3.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.20 by $1.17. The business had revenue of $473.55 million for the quarter, compared to the consensus estimate of $423.14 million. Encore Capital Group had a net margin of 14.52% and a return on equity of 28.19%. Encore Capital Group’s quarterly revenue was up 78.3% on a year-over-year basis. During the same quarter last year, the company posted ($9.42) earnings per share. As a group, sell-side analysts expect that Encore Capital Group Inc will post 5.09 EPS for the current year.
Encore Capital Group Company Profile (Free Report)
Encore Capital Group, Inc is a global specialty finance company that focuses on the purchase and management of nonperforming consumer receivables. Through its subsidiaries, the company acquires charged-off debt portfolios from credit card issuers, banks, and other financial institutions, and seeks to recover outstanding balances through a combination of customer outreach, payment arrangements, and, where appropriate, legal collection efforts. Encore’s business model emphasizes compliance with regulatory and industry standards to ensure ethical and transparent debt-recovery practices.
Headquartered in San Diego, California, Encore operates across North America and Europe.
Recommended Stories Five stocks we like better than Encore Capital Group Want to see what other hedge funds are holding ECPG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Encore Capital Group Inc (NASDAQ:ECPG – Free Report).
Receive News & Ratings for Encore Capital Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Encore Capital Group and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEMirae Asset Global Investments Co. Ltd. Has $8.64 Million Holdings in iShares MSCI Japan ETF $EWJ
NEXT HEADLINE »Mirae Asset Global Investments Co. Ltd. Raises Stake in MongoDB, Inc. $MDB
Cwm LLC lifted its stake in Encore Capital Group Inc (NASDAQ:ECPG – Free Report) by 99.6% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 25,045 shares of the asset manager’s stock after acquiring an additional 12,499 shares during the quarter. Cwm LLC owned approximately 0.11% of Encore Capital Group worth $1,361,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors have also modified their holdings of ECPG. Royal Bank of Canada increased its position in shares of Encore Capital Group by 97.9% in the first quarter. Royal Bank of Canada now owns 33,620 shares of the asset manager’s stock valued at $1,153,000 after acquiring an additional 16,634 shares during the last quarter. AQR Capital Management LLC increased its holdings in Encore Capital Group by 263.0% during the first quarter. AQR Capital Management LLC now owns 68,860 shares of the asset manager’s stock worth $2,361,000 after buying an additional 49,892 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in Encore Capital Group by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,929 shares of the asset manager’s stock worth $477,000 after buying an additional 612 shares during the last quarter. Empowered Funds LLC increased its holdings in Encore Capital Group by 2.0% during the first quarter. Empowered Funds LLC now owns 90,910 shares of the asset manager’s stock worth $3,116,000 after buying an additional 1,806 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Encore Capital Group by 7.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 78,465 shares of the asset manager’s stock worth $2,690,000 after buying an additional 5,672 shares during the last quarter.
Insiders Place Their Bets In other Encore Capital Group news, insider Ryan B. Bell sold 7,240 shares of Encore Capital Group stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $69.04, for a total value of $499,849.60. Following the completion of the sale, the insider owned 48,170 shares in the company, valued at $3,325,656.80. The trade was a 13.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 2.63% of the stock is owned by company insiders.
Encore Capital Group Price Performance NASDAQ:ECPG opened at $83.73 on Monday. Encore Capital Group Inc has a one year low of $32.27 and a one year high of $85.42. The company has a market cap of $1.79 billion, a P/E ratio of 7.64 and a beta of 1.26. The firm’s fifty day moving average price is $70.40 and its two-hundred day moving average price is $58.15. The company has a debt-to-equity ratio of 4.10, a current ratio of 0.68 and a quick ratio of 0.68.
Encore Capital Group (NASDAQ:ECPG – Get Free Report) last posted its earnings results on Wednesday, February 25th. The asset manager reported $3.37 EPS for the quarter, beating the consensus estimate of $2.20 by $1.17. Encore Capital Group had a return on equity of 28.19% and a net margin of 14.52%.The company had revenue of $473.55 million for the quarter, compared to the consensus estimate of $423.14 million. During the same quarter in the prior year, the business earned ($9.42) earnings per share. The firm’s revenue for the quarter was up 78.3% on a year-over-year basis. Equities analysts expect that Encore Capital Group Inc will post 11.97 earnings per share for the current year.
Wall Street Analyst Weigh In A number of brokerages recently weighed in on ECPG. Wall Street Zen upgraded shares of Encore Capital Group from a “buy” rating to a “strong-buy” rating in a report on Saturday, April 18th. Zacks Research upgraded shares of Encore Capital Group from a “hold” rating to a “strong-buy” rating in a report on Friday, February 27th. Truist Financial set a $100.00 price target on Encore Capital Group in a research report on Tuesday, April 21st. Citigroup reissued an “outperform” rating on shares of Encore Capital Group in a research report on Tuesday, January 20th. Finally, Weiss Ratings raised Encore Capital Group from a “sell (d-)” rating to a “hold (c-)” rating in a research report on Friday, February 27th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, Encore Capital Group presently has a consensus rating of “Buy” and a consensus price target of $80.50.
Check Out Our Latest Report on ECPG
Encore Capital Group Company Profile (Free Report)
Encore Capital Group, Inc is a global specialty finance company that focuses on the purchase and management of nonperforming consumer receivables. Through its subsidiaries, the company acquires charged-off debt portfolios from credit card issuers, banks, and other financial institutions, and seeks to recover outstanding balances through a combination of customer outreach, payment arrangements, and, where appropriate, legal collection efforts. Encore’s business model emphasizes compliance with regulatory and industry standards to ensure ethical and transparent debt-recovery practices.
Headquartered in San Diego, California, Encore operates across North America and Europe.
Featured Stories Five stocks we like better than Encore Capital Group
Receive News & Ratings for Encore Capital Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Encore Capital Group and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEAshton Thomas Private Wealth LLC Has $7.82 Million Holdings in Qualcomm Incorporated $QCOM
NEXT HEADLINE »Cwm LLC Reduces Stock Holdings in Chord Energy Corporation $CHRD
Favorable purchasing conditions continue in U.S. marketGlobal portfolio purchases of $363 million, including $316 million in U.S.Global collections up 19% to record $718 million Earnings per share of $3.86 SAN DIEGO, May 06, 2026 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (NASDAQ: ECPG), an international specialty finance company, today reported consolidated financial results for the first quarter ended March 31, 2026.
“Encore delivered another quarter of strong performance in Q1 as our industry leadership and operational improvement remain on full display,” said Ashish Masih, President and Chief Executive Officer. “Our business continues to thrive with solid first quarter portfolio purchases of $363 million and record collections of $718 million, which were up 19% compared to a year ago. This collections performance helped earnings increase sharply, with first quarter earnings per share of $3.86 up 100% compared to $1.93 per share a year ago.”
“Our MCM business in the U.S. continues to deliver very strong results. Capitalizing on the ongoing attractive market opportunity in the U.S. driven by ample portfolio supply, MCM portfolio purchases in the first quarter were $316 million, one of our strongest portfolio purchasing quarters ever. MCM also delivered record collections of $556 million in the first quarter, up 23% compared to Q1 a year ago. This exceptional collections performance is the result of strong execution and continued significant portfolio purchasing as well as the deployment of new technologies, enhanced digital capabilities and continued operational innovation.”
“Our Cabot business in Europe delivered a solid first quarter. Portfolio purchases of $47 million were consistent with Cabot’s recent historical trend while collections of $161 million were up 7% compared to the first quarter last year.”
“As a result of our strong start to the year, we are raising our global collections guidance and now expect our full-year 2026 collections to be approximately $2.8 billion, reflecting year-over-year growth of 8%. Additionally, we are raising our earnings guidance and now expect our earnings per share in 2026 to increase 19% to $13.00. Our guidance for portfolio purchasing remains unchanged from our view in February as we continue to anticipate our global portfolio purchases this year to be within a range from $1.4 billion to $1.5 billion. As always, we remain committed to the critical role we play in the consumer credit ecosystem and to helping consumers restore their financial health,” said Masih.
In the first quarter, the company repurchased $20 million of its shares of common stock.
Financial Highlights for the First Quarter of 2026:
Three Months Ended March 31,(in thousands, except percentages and earnings per share)2026
2025
ChangePortfolio purchases(1)$362,841 $367,851 (1)%Average receivable portfolios(2)$4,404,473 $3,864,450 14%Estimated Remaining Collections (ERC)$9,825,266 $8,862,661 11%Collections$718,414 $604,807 19%Revenues$475,411 $392,775 21%Operating expenses$291,419 $263,432 11%Net income$86,243 $46,796 84%Earnings per share$3.86 $1.93 100% ______________________
(1) Includes U.S. purchases of $315.8 million and $316.4 million, and Europe purchases of $47.0 million and $51.5 million in Q1 2026 and Q1 2025, respectively.
(2) Represents the average of receivable portfolios for the quarter (sum of receivable portfolios at the beginning and end of the quarter divided by 2).
Conference Call and Webcast
Encore will host a conference call and slide presentation today, May 6, 2026, at 2:00 p.m. Pacific / 5:00 p.m. Eastern time, to present and discuss first quarter results.
Members of the public are invited to access the live webcast via the Internet by logging in on the Investor Relations page of Encore's website at encorecapital.com. To access the live conference call by telephone, please pre-register using this link. Registrants will receive confirmation with dial-in details.
For those who cannot listen to the live broadcast, a replay of the webcast will be available on the Company's website shortly after the call concludes.
Non-GAAP Financial Measures
This news release includes certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company has included information concerning adjusted EBITDA because management utilizes this information in the evaluation of its operations and believes that this measure is a useful indicator of the Company’s ability to generate cash collections in excess of operating expenses through the liquidation of its receivable portfolios. Adjusted EBITDA has not been prepared in accordance with GAAP and should not be considered as an alternative to, or more meaningful than, net income and net income per share as indicators of the Company’s operating performance. Further, this non-GAAP financial measure, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. A reconciliation of Adjusted EBITDA to its most directly comparable GAAP financial measure is below.
About Encore Capital Group, Inc.
Encore Capital Group is an international specialty finance company that provides debt recovery solutions and other related services for consumers across a broad range of financial assets. Through its subsidiaries around the globe, Encore purchases portfolios of consumer receivables from major banks, credit unions, and utility providers.
Encore partners with individuals as they repay their debt obligations, helping them on the road to financial recovery and ultimately improving their economic well-being. Encore is the first and only company of its kind to operate with a Consumer Bill of Rights that provides industry-leading commitments to consumers. Headquartered in San Diego, Encore is a publicly traded NASDAQ Global Select company (ticker symbol: ECPG) and a component stock of the Russell 2000, the S&P Small Cap 600 and the Wilshire 4500. More information about the company can be found at http://www.encorecapital.com.
Forward Looking Statements
The statements in this press release that are not historical facts, including, most importantly, those statements preceded by, or that include, the words “will,” “may,” “believe,” “projects,” “expects,” “anticipates” or the negation thereof, or similar expressions, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). These statements may include, but are not limited to, statements regarding our future operating results (including purchases and collections), performance, supply and pricing, liquidity, business plans or prospects. For all “forward-looking statements,” the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of the Company and its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and other factors are discussed in the reports filed by the Company with the Securities and Exchange Commission, including the most recent report on Form 10-K, as it may be amended from time to time. The Company disclaims any intent or obligation to update these forward-looking statements.
Contact:
Bruce Thomas
Encore Capital Group, Inc.
Vice President, Global Investor Relations [email protected]
SOURCE: Encore Capital Group, Inc.
FINANCIAL TABLES FOLLOW
ENCORE CAPITAL GROUP, INC.
Condensed Consolidated Statements of Financial Condition
(In Thousands, Except Par Value Amounts)
(Unaudited)
March 31,
2026 December 31,
2025Assets Cash and cash equivalents$227,204 $156,784 Receivable portfolios, net 4,437,415 4,371,532 Property and equipment, net 79,292 82,080 Other assets 177,163 193,113 Goodwill 529,487 536,291 Total assets$5,450,561 $5,339,800 Liabilities and Equity Liabilities: Accounts payable and accrued liabilities$252,277 $230,261 Borrowings 4,033,301 4,001,293 Other liabilities 130,175 131,496 Total liabilities 4,415,753 4,363,050 Commitments and Contingencies Equity: Convertible preferred stock, $0.01 par value, 5,000 shares authorized, no shares issued and outstanding — — Common stock, $0.01 par value, 75,000 shares authorized, 21,499 and 21,688 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively 215 217 Additional paid-in capital — — Accumulated earnings 1,167,038 1,104,640 Accumulated other comprehensive loss (132,445) (128,107)Total stockholders’ equity 1,034,808 976,750 Total liabilities and stockholders’ equity$5,450,561 $5,339,800 The following table presents certain assets and liabilities of consolidated variable interest entities (“VIEs”) included in the condensed consolidated statements of financial condition above. Most assets in the table below include those assets that can only be used to settle obligations of consolidated VIEs. The liabilities exclude amounts where creditors or beneficial interest holders have recourse to the general credit of the Company.
March 31,
2026 December 31,
2025Assets Cash and cash equivalents$50,115 $40,256Receivable portfolios, net 1,177,046 1,151,221Other assets 4,392 3,540Liabilities Accounts payable and accrued liabilities 2,986 3,101Borrowings 783,444 791,182Other liabilities 1,352 2,774 ENCORE CAPITAL GROUP, INC.
Condensed Consolidated Statements of Income
(In Thousands, Except Per Share Amounts)
(Unaudited)
Three Months Ended
March 31, 2026 2025 Revenues Portfolio revenue$390,019 $345,218 Changes in recoveries 62,740 21,464 Total debt purchasing revenue 452,759 366,682 Servicing revenue 20,638 22,547 Other revenues 2,014 3,546 Total revenues 475,411 392,775 Operating expenses Salaries and employee benefits 114,541 105,932 Cost of legal collections 89,221 68,013 General and administrative expenses 39,629 41,018 Other operating expenses 34,833 34,252 Collection agency commissions 6,337 6,873 Depreciation and amortization 6,858 7,344 Total operating expenses 291,419 263,432 Income from operations 183,992 129,343 Other expense Interest expense (73,050) (70,530)Other income 790 1,647 Total other expense (72,260) (68,883)Income before income taxes 111,732 60,460 Provision for income taxes (25,489) (13,664)Net income$86,243 $46,796 Earnings per share: Basic$3.97 $1.96 Diluted$3.86 $1.93 Weighted average shares outstanding: Basic 21,728 23,879 Diluted 22,320 24,269 ENCORE CAPITAL GROUP, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited, In Thousands) Three Months Ended March 31, 2026 2025 Operating activities: Net income$86,243 $46,796 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 6,858 7,344 Other non-cash interest expense, net 2,537 3,544 Stock-based compensation expense 4,575 3,424 Changes in recoveries (62,740) (21,464)Other, net 4,681 1,737 Changes in operating assets and liabilities Other assets 4,892 (3,499)Accounts payable, accrued liabilities and other liabilities 35,280 7,401 Net cash provided by operating activities 82,326 45,283 Investing activities: Purchases of receivable portfolios, net of put-backs (359,463) (362,712)Collections applied to receivable portfolios 328,395 259,589 Purchases of property and equipment (4,856) (6,990)Other, net 8,517 9,835 Net cash used in investing activities (27,407) (100,278)Financing activities: Payment of loan and debt refinancing costs (1,109) (255)Proceeds from credit facilities 358,021 246,426 Repayment of credit facilities (304,185) (185,831)Repurchase and retirement of common stock (20,092) (10,004)Other, net (14,026) (9,999)Net cash provided by financing activities 18,609 40,337 Net increase (decrease) in cash and cash equivalents 73,528 (14,658)Effect of exchange rate changes on cash and cash equivalents (3,108) 1,910 Cash and cash equivalents, beginning of period 156,784 199,865 Cash and cash equivalents, end of period$227,204 $187,117 Supplemental disclosures of cash flow information: Cash paid for interest$37,343 $41,303 Cash paid for income taxes, net of refunds 860 1,247 Supplemental schedule of non-cash investing activities: Receivable portfolios transferred to real estate owned$1,020 $1,040 ENCORE CAPITAL GROUP, INC.
Supplemental Financial Information
Reconciliation of Non-GAAP Metrics Adjusted EBITDA Three Months Ended
March 31,(in thousands, unaudited) 2026 2025 GAAP net income, as reported$86,243 $46,796 Adjustments: Interest expense 73,050 70,530 Interest income (1,094) (1,546)Provision for income taxes 25,489 13,664 Depreciation and amortization 6,858 7,344 Stock-based compensation expense 4,575 3,424 Acquisition, integration and restructuring related expenses(1) 1,465 248 Adjusted EBITDA$196,586 $140,460 Collections applied to principal balance(2)$269,469 $244,300 ________________________
(1) Amount represents acquisition, integration and restructuring related expenses. We adjust for this amount because we believe these expenses are not indicative of ongoing operations; therefore, adjusting for these expenses enhances comparability to prior periods, anticipated future periods, and our competitors’ results.
(2) Amount represents (a) gross collections from receivable portfolios less (b) debt purchasing revenue, plus (c) proceeds applied to basis from sales of real estate owned (“REO”) assets and, when applicable, other receivable portfolios. A reconciliation of “collections applied to receivable portfolios, net” to “collections applied to principal balance” is available in the Form 10-Q for the period ending March 31, 2026.
Encore Capital Group (ECPG - Free Report) came out with quarterly earnings of $3.86 per share, beating the Zacks Consensus Estimate of $3.26 per share. This compares to earnings of $1.93 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +18.59%. A quarter ago, it was expected that this provider of debt-management and recovery services would post earnings of $2.2 per share when it actually produced earnings of $3.37, delivering a surprise of +53.18%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Encore Capital Group, which belongs to the Zacks Financial - Consumer Loans industry, posted revenues of $475.41 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 5.25%. This compares to year-ago revenues of $392.77 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Encore Capital Group shares have added about 55.3% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for Encore Capital Group?While Encore Capital Group has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Encore Capital Group was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.04 on $456.66 million in revenues for the coming quarter and $11.97 on $1.82 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Consumer Loans is currently in the top 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Open Lending (LPRO - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This company is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Open Lending's revenues are expected to be $20.3 million, down 16.8% from the year-ago quarter.
Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.
Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.
A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.
Encore Capital Group (ECPG - Free Report) is one of the several great candidates that made it through the screen. While there are numerous reasons why this stock is a great choice, here are the most vital ones:
Investors' growing interest in a stock is reflected in its recent price increase. A price change of 7.7% over the past four weeks positions the stock of this provider of debt-management and recovery services well in this regard.
While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. ECPG meets this criterion too, as the stock gained 43.8% over the past 12 weeks.
Moreover, the momentum for ECPG is fast paced, as the stock currently has a beta of 1.33. This indicates that the stock moves 33% higher than the market in either direction.
Given this price performance, it is no surprise that ECPG has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.
In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped ECPG earn a Zacks Rank #2 (Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Most importantly, despite possessing fast-paced momentum features, ECPG is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. ECPG is currently trading at 0.95 times its sales. In other words, investors need to pay only 95 cents for each dollar of sales.
So, ECPG appears to have plenty of room to run, and that too at a fast pace.
In addition to ECPG, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.
This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.
However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.
Click here to sign up for a free trial to the Research Wizard today.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Encore Capital Group (ECPG - Free Report) . ECPG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.46, which compares to its industry's average of 8.02. Over the last 12 months, ECPG's Forward P/E has been as high as 9.37 and as low as 4.14, with a median of 5.49.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ECPG has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.37.
These are only a few of the key metrics included in Encore Capital Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ECPG looks like an impressive value stock at the moment.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, May 11:
BP p.l.c. (BP - Free Report) : This company that engages in the energy business worldwide carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 103.5% over the last 60 days.
BP has a price-to-earnings ratio (P/E) of 8.19, compared with 12.10 for the industry. The company possesses a Value Score of A.
TriNet Group, Inc. (TNET - Free Report) : This human capital management services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.1% over the last 60 days.
TriNet has a price-to-earnings ratio (P/E) of 9.30, compared with 23.66 for the S&P 500. The company possesses a Value Score of A.
Encore Capital Group, Inc. (ECPG - Free Report) : This specialty finance company providing debt recovery solutions carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.4% over the last 60 days.
Encore Capital has a price-to-earnings ratio (P/E) of 6.45, compared with 11.70 for the industry. The company possesses a Value Score of B.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Value score and how it is calculated here.
May 11, 2026 07:17 ET | Source: Encore Capital Group, Inc.
SAN DIEGO, May 11, 2026 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq: ECPG) (the “Company”) today announced its intention to offer, subject to market and other conditions, $550.0 million aggregate principal amount of senior secured notes due 2032 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and outside the United States to non-U.S. persons (within the meaning of Regulation S under the Securities Act).
The notes will be senior secured obligations of the Company, and will be fully and unconditionally guaranteed on a senior secured basis by substantially all material subsidiaries of the Company. The obligations of the Company and the guarantors will be secured, together with the Company’s other senior secured indebtedness, by substantially all of the assets of the Company and the guarantors. The interest rate and other terms of the notes will be determined at the pricing of the offering.
The Company intends to use the proceeds from this offering, together with drawings under its revolving credit facility, to (a) redeem its outstanding $500.0 million of 9.250% senior secured notes due 2029 in full, including payment of the premium due as part of the redemption price and estimated accrued interest payable on the redemption date, (b) redeem €200.0 million of its €415.0 million outstanding senior secured floating rate notes due 2028, including payment of estimated accrued interest payable on the redemption date and (c) pay estimated fees, expenses and the initial purchasers’ discounts for the offering.
Depending on the capital markets, the Company continuously considers additional financings, including offerings of additional senior secured notes in different currencies and with fixed or floating interest rates, to fund its operations and to refinance existing debt obligations.
The offer and sale of the notes have not been, and will not be, registered under the Securities Act, and the notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes nor will there be any sale of the notes in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful. Any offer of the securities will be made only by means of a private offering memorandum.
Forward-Looking Statements
This press release includes forward-looking statements, including statements regarding the completion, timing and size of the proposed offering, the intended use of the proceeds, and the terms of the notes being offered. Forward-looking statements represent Encore’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the trading price and volatility of Encore’s common stock and risks relating to Encore’s business, including those described in periodic reports that Encore files from time to time with the U.S. Securities and Exchange Commission. Encore may not consummate the proposed offering described in this press release and, if the proposed offering is consummated, cannot provide any assurances regarding the final terms of the notes or its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and Encore does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Encore Capital Group (ECPG - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Encore Capital Group currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if ECPG is a promising momentum pick, let's examine some Momentum Style elements to see if this provider of debt-management and recovery services holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For ECPG, shares are up 0.7% over the past week while the Zacks Financial - Consumer Loans industry is down 0.44% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 11.2% compares favorably with the industry's 2.63% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of Encore Capital Group have increased 45.95% over the past quarter, and have gained 107.06% in the last year. On the other hand, the S&P 500 has only moved 7.06% and 32.03%, respectively.
Investors should also pay attention to ECPG's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. ECPG is currently averaging 366,098 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with ECPG.
Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ECPG's consensus estimate, increasing from $12.11 to $13.01 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that ECPG is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Encore Capital Group on your short list.
May 11, 2026 18:54 ET | Source: Encore Capital Group, Inc.
SAN DIEGO, May 11, 2026 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq: ECPG) (the “Company”) today announced the pricing of its offering of $750.0 million aggregate principal amount of 6.625% senior secured notes due 2032 (the “notes”), which was upsized to $750.0 million from $550.0 million, at an issue price of 100.00% in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and outside the United States to non-U.S. persons (within the meaning of Regulation S under the Securities Act).
The notes will be senior secured obligations of the Company, and will be fully and unconditionally guaranteed on a senior secured basis by substantially all material subsidiaries of the Company. The obligations of the Company and the guarantors will be secured, together with the Company’s other senior secured indebtedness, by substantially all of the assets of the Company and the guarantors. The notes will accrue interest at a rate of 6.625% per annum, payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2026. The notes will mature on June 1, 2032 unless earlier repurchased or redeemed by the Company.
The Company intends to use the proceeds from this offering, together with drawings under its revolving credit facility, to (a) redeem its outstanding $500.0 million of 9.250% senior secured notes due 2029 in full, including payment of the premium due as part of the redemption price and estimated accrued interest payable on the redemption date, (b) redeem €200.0 million of its €415.0 million outstanding senior secured floating rate notes due 2028, including payment of estimated accrued interest payable on the redemption date and (c) pay estimated fees, expenses and the initial purchasers’ discounts for the offering. The offering and the use of proceeds therefrom does not change the guidance for the fiscal year ended December 31, 2026 that the Company provided on May 6, 2026.
Depending on the capital markets, the Company continuously considers additional financings, including offerings of additional senior secured notes in different currencies and with fixed or floating interest rates, to fund its operations and to refinance existing debt obligations.
The offer and sale of the notes have not been, and will not be, registered under the Securities Act, and the notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes nor will there be any sale of the notes in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful. Any offer of the securities will be made only by means of a private offering memorandum.
Forward-Looking Statements
This press release includes forward-looking statements, including statements regarding the completion, timing and size of the proposed offering, the intended use of the proceeds and the terms of the notes being offered. Forward-looking statements represent Encore’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the trading price and volatility of Encore’s common stock and risks relating to Encore’s business, including those described in periodic reports that Encore files from time to time with the U.S. Securities and Exchange Commission. Encore may not consummate the proposed offering described in this press release and, if the proposed offering is consummated, cannot provide any assurances regarding the final terms of the notes or its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and Encore does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.
May 12, 2026 03:15 ET | Source: Encore Capital Group, Inc.
SAN DIEGO, May 12, 2026 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq: ECPG) (the “Company”) today announced its intention to offer, subject to market and other conditions, €300.0 million aggregate principal amount of senior secured floating rate notes due 2033 (the “notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and outside the United States to non-U.S. persons (within the meaning of Regulation S under the Securities Act).
The notes will be senior secured obligations of the Company, and will be fully and unconditionally guaranteed on a senior secured basis by substantially all material subsidiaries of the Company. The obligations of the Company and the guarantors will be secured, together with the Company’s other senior secured indebtedness, by substantially all of the assets of the Company and the guarantors. The interest rate and other terms of the notes will be determined at the pricing of the offering.
The Company intends to use the proceeds from this offering to (a) redeem €215.0 million of its €415.0 million outstanding senior secured floating rate notes due 2028, including payment of estimated accrued interest payable on the redemption date, (b) repay drawings under its revolving credit facility, and (c) pay estimated fees, expenses and the initial purchasers’ discounts for the offering.
On May 11, 2026, the Company launched and priced an offering of $750.0 million 6.625% senior secured notes due 2032 (the "2032 Notes"), which are expected to be issued on May 22, 2026. The Company intends to use the proceeds from the offering of the 2032 Notes, together with drawings under its revolving credit facility, to (a) redeem its outstanding $500.0 million of 9.250% senior secured notes due 2029 in full, including payment of the premium due as part of the redemption price and estimated accrued interest payable on the redemption date, (b) redeem €200.0 million of its €415.0 million outstanding senior secured floating rate notes due 2028, including payment of estimated accrued interest payable on the redemption date and (c) pay estimated fees, expenses and the initial purchasers’ discounts for the offering.
Following the completion of this offering and the offering of the 2032 Notes, and the use of proceeds therefrom, the Company's €415.0 million of outstanding senior secured floating rate notes due 2028 will be redeemed in full, and there will be a net repayment of drawings under its revolving credit facility.
The offer and sale of the notes have not been, and will not be, registered under the Securities Act, and the notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes nor will there be any sale of the notes in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful. Any offer of the securities will be made only by means of a private offering memorandum.
Forward-Looking Statements
This press release includes forward-looking statements, including statements regarding the completion, timing and size of the proposed offering, the intended use of the proceeds and the terms of the notes being offered. Forward-looking statements represent Encore’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the trading price and volatility of Encore’s common stock and risks relating to Encore’s business, including those described in periodic reports that Encore files from time to time with the U.S. Securities and Exchange Commission. Encore may not consummate the proposed offering described in this press release and, if the proposed offering is consummated, cannot provide any assurances regarding the final terms of the notes or its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and Encore does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.
Contact Information
Bruce Thomas, Investor Relations [email protected]
Encore Capital Group (ECPG - Free Report) closed the last trading session at $82.33, gaining 5.2% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $104.33 indicates a 26.7% upside potential.
The mean estimate comprises three short-term price targets with a standard deviation of $4.04. While the lowest estimate of $100.00 indicates a 21.5% increase from the current price level, the most optimistic analyst expects the stock to surge 31.2% to reach $108.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in ECPG. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in ECPGThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, two estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 8.7%.
Moreover, ECPG currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much ECPG could gain, the direction of price movement it implies does appear to be a good guide.
May 13, 2026 18:46 ET | Source: Encore Capital Group, Inc.
SAN DIEGO, May 13, 2026 (GLOBE NEWSWIRE) -- Encore Capital Group, Inc. (Nasdaq: ECPG) (the “Company”) today announced the pricing of its offering of €325.0 million aggregate principal amount of senior secured floating rate notes due 2033 (the “notes”) with a coupon of three-month EURIBOR (subject to a 0% floor) plus 3.250%, which was upsized from €300.0 million, in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and outside the United States to non-U.S. persons (within the meaning of Regulation S under the Securities Act).
The notes will be senior secured obligations of the Company, and will be fully and unconditionally guaranteed on a senior secured basis by substantially all material subsidiaries of the Company. The obligations of the Company and the guarantors will be secured, together with the Company’s other senior secured indebtedness, by substantially all of the assets of the Company and the guarantors. The notes will accrue interest at a rate equal to the sum of (i) three-month EURIBOR (subject to a 0% floor) plus (ii) 3.250% per annum, reset quarterly, payable quarterly in arrears on January 15, April 15, July 15, and October 15 of each year, beginning on July 15, 2026. The notes will mature on July 15, 2033, unless earlier repurchased or redeemed by the Company.
The Company intends to use the proceeds from this offering to (a) redeem €215.0 million of its €415.0 million outstanding senior secured floating rate notes due 2028, including payment of estimated accrued interest payable on the redemption date, (b) repay drawings under its revolving credit facility, and (c) pay estimated fees, expenses and the initial purchasers’ discounts for the offering.
On May 11, 2026, the Company launched and priced an offering of $750.0 million 6.625% senior secured notes due 2032 (the "2032 Notes"), which are expected to be issued on May 22, 2026. The Company intends to use the proceeds from the offering of the 2032 Notes, together with drawings under its revolving credit facility, to (a) redeem its outstanding $500.0 million of 9.250% senior secured notes due 2029 in full, including payment of the premium due as part of the redemption price and estimated accrued interest payable on the redemption date, (b) redeem €200.0 million of its €415.0 million outstanding senior secured floating rate notes due 2028, including payment of estimated accrued interest payable on the redemption date and (c) pay estimated fees, expenses and the initial purchasers’ discounts for the offering.
Following the completion of this offering and the offering of the 2032 Notes, and the use of proceeds therefrom, the Company's €415.0 million of outstanding senior secured floating rate notes due 2028 will be redeemed in full, and there will be a net repayment of drawings under its revolving credit facility.
The offering, the offering of the 2032 Notes and the use of proceeds therefrom does not change the guidance for the fiscal year ended December 31, 2026 that the Company provided on May 6, 2026.
The offer and sale of the notes have not been, and will not be, registered under the Securities Act, and the notes may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the notes nor will there be any sale of the notes in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful. Any offer of the securities will be made only by means of a private offering memorandum.
Forward-Looking Statements
This press release includes forward-looking statements, including statements regarding the completion, timing and size of the proposed offering, the intended use of the proceeds and the terms of the notes being offered. Forward-looking statements represent Encore’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including market interest rates, the trading price and volatility of Encore’s common stock and risks relating to Encore’s business, including those described in periodic reports that Encore files from time to time with the U.S. Securities and Exchange Commission. Encore may not consummate the proposed offering described in this press release and, if the proposed offering is consummated, cannot provide any assurances regarding the final terms of the notes or its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and Encore does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Encore Capital Group (ECPG - Free Report) . ECPG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 5.46, while its industry has an average P/E of 7.65. Over the last 12 months, ECPG's Forward P/E has been as high as 9.37 and as low as 4.14, with a median of 5.49.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ECPG has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.41.
These are only a few of the key metrics included in Encore Capital Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ECPG looks like an impressive value stock at the moment.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, May 27th:
First American Financial (FAF - Free Report) : This company, which serves homebuyers and sellers, real estate professionals, loan originators and servicers, commercial property professionals, homebuilders and others involved in residential and commercial property transactions with products and services specific to their needs, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.1% over the last 60 days.
First American Financial’s has a price-to-earnings ratio (P/E) of 9.97 compared with 12.50 for the industry. The company possesses a Value Score of A.
Encore Capital Group (ECPG - Free Report) : This international specialty finance company, which provides debt recovery solutions and other related services for consumers across a broad range of financial assets, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.4% over the last 60 days.
Encore Capital has a price-to-earnings ratio (P/E) of 6.27 compared with 11.90 for the industry. The company possesses a Value Score of B.
Alerus Financial (ALRS - Free Report) : This financial services company, which offers financial solutions to businesses and consumers, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 13.9% over the last 60 days.
Alerus Financial has a price-to-earnings ratio (P/E) of 9.79 compared with 9.90 for the industry. The company possesses a Value Score of B.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, June 1:
Pagaya Technologies Ltd. (PGY - Free Report) : This product-focused technology company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 12.2% over the last 60 days.
Pagaya has a price-to-earnings ratio (P/E) of 4.68, compared with 8.90 for the industry. The company possesses a Value Score of A.
Green Dot Corporation (GDOT - Free Report) : This financial technology and bank holding company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 12.8% over the last 60 days.
Green Dot has a price-to-earnings ratio (P/E) of 7.68, compared with 26.40 for the industry. The company possesses a Value Score of A.
Encore Capital Group, Inc. (ECPG - Free Report) : This specialty finance company providing debt recovery solutions carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.4% over the last 60 days.
Encore Capital has a price-to-earnings ratio (P/E) of 6.14, compared with 11.90 for the industry. The company possesses a Value Score of B.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Value score and how it is calculated here.
Here are three stocks with buy rank and strong value characteristics for investors to consider today, June 10:
Encore Capital Group, Inc. (ECPG - Free Report) : This finance company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 7.4% over the last 60 days.
Encore Capital Group has a price-to-earnings ratio (P/E) of 6.17 compared with 11.60 for the industry. The company possesses a Value Scoreof A.
Columbus McKinnon Corporation (CMCO - Free Report) : This material handling equipment company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing by 5% over the last 60 days.
Columbus McKinnon has a price-to-earnings ratio (P/E) of 7.37 compared with 24.20 for the industry. The company possesses a Value Score of A.
Alto Ingredients, Inc. (ALTO - Free Report) : This specialty chemicals company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its next year earnings increasing 184.2% over the last 60 days.
Alto Ingredients has a price-to-earnings ratio (P/E) of 10.43 compared with 10.90 for the industry. The company possesses a Value Score of A.
See the full list of top ranked stocks here.
Learn more about the Value score and how it is calculated here.
