logo
Here's Why FirstCash Holdings (NASDAQ:FCFS) Has Caught The Eye Of Investors

Here's Why FirstCash Holdings (NASDAQ:FCFS) Has Caught The Eye Of Investors

Yahoo03-04-2025

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But as Peter Lynch said in One Up On Wall Street, 'Long shots almost never pay off.' While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.
Despite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy; buying shares in profitable companies like FirstCash Holdings (NASDAQ:FCFS). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.
We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That means EPS growth is considered a real positive by most successful long-term investors. Shareholders will be happy to know that FirstCash Holdings' EPS has grown 24% each year, compound, over three years. As a general rule, we'd say that if a company can keep up that sort of growth, shareholders will be beaming.
It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. It's noted that FirstCash Holdings' revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. FirstCash Holdings maintained stable EBIT margins over the last year, all while growing revenue 7.5% to US$3.4b. That's a real positive.
The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.
View our latest analysis for FirstCash Holdings
In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of FirstCash Holdings' forecast profits ?
Owing to the size of FirstCash Holdings, we wouldn't expect insiders to hold a significant proportion of the company. But we do take comfort from the fact that they are investors in the company. Notably, they have an enviable stake in the company, worth US$695m. That equates to 13% of the company, making insiders powerful and aligned with other shareholders. Looking very optimistic for investors.
If you believe that share price follows earnings per share you should definitely be delving further into FirstCash Holdings' strong EPS growth. Further, the high level of insider ownership is impressive and suggests that the management appreciates the EPS growth and has faith in FirstCash Holdings' continuing strength. Fast growth and confident insiders should be enough to warrant further research, so it would seem that it's a good stock to follow. Before you take the next step you should know about the 2 warning signs for FirstCash Holdings that we have uncovered.
There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of companies which have demonstrated growth backed by significant insider holdings.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

RBC Capital Sticks to Its Hold Rating for CME Group (CME)
RBC Capital Sticks to Its Hold Rating for CME Group (CME)

Business Insider

time10 minutes ago

  • Business Insider

RBC Capital Sticks to Its Hold Rating for CME Group (CME)

RBC Capital analyst Ashish Sabadra maintained a Hold rating on CME Group (CME – Research Report) on June 8 and set a price target of $269.00. The company's shares closed yesterday at $268.35. Confident Investing Starts Here: Sabadra covers the Industrials sector, focusing on stocks such as APi Group, Cintas, and Equifax. According to TipRanks, Sabadra has an average return of 6.1% and a 62.50% success rate on recommended stocks. In addition to RBC Capital, CME Group also received a Hold from KBW's Kyle Voigt in a report issued on June 4. However, on the same day, Oppenheimer reiterated a Buy rating on CME Group (NASDAQ: CME). CME market cap is currently $98.82B and has a P/E ratio of 27.57. Based on the recent corporate insider activity of 99 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CME in relation to earlier this year. Last month, Daniel Kaye, a Director at CME sold 500.00 shares for a total of $141,205.00.

Nasdaq (NDAQ) Gets a Buy from RBC Capital
Nasdaq (NDAQ) Gets a Buy from RBC Capital

Business Insider

time10 minutes ago

  • Business Insider

Nasdaq (NDAQ) Gets a Buy from RBC Capital

RBC Capital analyst Ashish Sabadra maintained a Buy rating on Nasdaq (NDAQ – Research Report) on June 8 and set a price target of $95.00. The company's shares closed yesterday at $85.65. Confident Investing Starts Here: According to TipRanks, Sabadra is a 5-star analyst with an average return of 6.1% and a 62.50% success rate. Sabadra covers the Industrials sector, focusing on stocks such as APi Group, Cintas, and Equifax. Currently, the analyst consensus on Nasdaq is a Moderate Buy with an average price target of $84.58. NDAQ market cap is currently $49.15B and has a P/E ratio of 38.82. Based on the recent corporate insider activity of 83 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NDAQ in relation to earlier this year. Last month, Pc Nelson Griggs, the Pres. Capital Access Platforms of NDAQ sold 8,000.00 shares for a total of $664,240.00.

‘Nothing Lasts Forever,' Says Top Investor About Palantir Stock
‘Nothing Lasts Forever,' Says Top Investor About Palantir Stock

Business Insider

time39 minutes ago

  • Business Insider

‘Nothing Lasts Forever,' Says Top Investor About Palantir Stock

Palantir (NASDAQ:PLTR) stock presents investors with quite a quandary. Confident Investing Starts Here: On the one hand, there is no denying that the company has delivered incredible growth over the past few years. Its revenues are skyrocketing, its margins are strong, and its list of customers continues to grow by leaps and bounds. Its share price has responded in kind, surging by over 466% over the past twelve months. And therein lies the rub, as PLTR is now trading at elevated multiples that are far and above the sector average. This leads to the question of whether all that company growth has led to enthusiasm that is a bit too optimistic. Top investor Riyado Sofian is decidedly on the fence, and is not sure which way the winds will blow. 'It's hard to decide whether to buy or sell — best to just hold it,' states the 5-star investor, who is in the top 3% of TipRanks' stock pros. Sofian outlines the bull case, describing a company that has introduced game-changing AI technology that sets the firm apart from its peers. Beyond the growing sales, profits, and customers, the investor also points out that revenues from Palantir's top 20 customers increased by 26% year-over-year, a strong indication of customer satisfaction. While the company continues to raise its guidance, it often succeeds in going well beyond these numbers, notes Sofian, and it has repeatedly 'destroyed its guidance' in previous quarters. In other words, more massive growth could be on the horizon for Palantir. 'All things considered, this is execution on an elite level — there's no denying it,' adds Sofian. And yet, judging by traditional metrics, the company is overvalued, the investor acknowledges, and its narrative as 'the most important AI company in the West' is what has powered its continuing ascent. For that reason, as long as the company's growth continues apace, PLTR should continue to rise as well. However, that is far from certain, and at a valuation of 100x its revenues, there is practically no room for error if the impressive rate starts to slow. To this point, Sofian reminds investors that nothing lasts forever. With neither a Buy nor a Sell looking particularly appealing, Sofian is splitting the difference and rating PLTR shares a Hold (i.e. Neutral). (To watch Sofian's track record, click here) That stance is echoed across Wall Street. Of the 18 analyst reviews on file, 11 say Hold, while just 3 recommend Buy and 4 suggest Sell, making PLTR a consensus Hold. The average 12-month price target sits at $101.06, implying a ~23% downside from current levels. (See PLTR stock forecast) To find good ideas for AI stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store