FirstCash Holdings, Inc. (FCFS) Soars to 52-Week High, Time to Cash Out?

Shares of FirstCash Holdings (FCFS) have been strong performers lately, with the stock up 6.2% over the past month. The stock hit a new 52-week high of $135.64 in the previous session. FirstCash has gained 29.8% since the start of the year compared to the 0.9% move for the Zacks Business Services sector and the 2.6% return for the Zacks Financial Transaction Services industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 24, 2025, FirstCash reported EPS of $2.07 versus consensus estimate of $1.75 while it missed the consensus revenue estimate by 0.64%.For the current fiscal year, FirstCash is expected to post earnings of $7.86 per share on $3.38 in revenues. This represents a 17.31% change in EPS on a -0.2% change in revenues. For the next fiscal year, the company is expected to earn $9.31 per share on $3.56 in revenues. This represents a year-over-year change of 18.35% and 5.18%, respectively.Valuation MetricsThough FirstCash has recently hit a 52-week high, what is next for FirstCash? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.FirstCash has a Value Score of B. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 17.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.1X. On a trailing cash flow basis, the stock currently trades at 7.5X versus its peer group's average of 11.7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, FirstCash currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if FirstCash meets the list of requirements. Thus, it seems as though FirstCash shares could have a bit more room to run in the near term.How Does FCFS Stack Up to the Competition?Shares of FCFS have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Green Dot Corporation (GDOT). GDOT has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of F.Earnings were strong last quarter. Green Dot Corporation beat our consensus estimate by 51.43%, and for the current fiscal year, GDOT is expected to post earnings of $1.22 per share on revenue of $2.05 billion.Shares of Green Dot Corporation have gained 14% over the past month, and currently trade at a forward P/E of 8.72X and a P/CF of 4.38X.The Financial Transaction Services industry is in the top 22% of all the industries we have in our universe, so it looks like there are some nice tailwinds for FCFS and GDOT, even beyond their own solid fundamental situation.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FirstCash Holdings, Inc. (FCFS): Free Stock Analysis Report Green Dot Corporation (GDOT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks