The nonprime consumer credit industry is going through some turbulent times. There are both opportunities and pitfalls in some of the stocks in this sector. Today I'm going to examine a company I've been following for almost ten years, First Cash Financial Services (NASDAQ:FCFS), which presents a great long-term buying opportunity.
The Nonprime Consumer
Before we jump into fundamentals on FCFS stock, it's essential to understand the products the company offers and, more importantly, the behavior of the nonprime consumer. This demographic has not built good credit, and as such, does not have access to traditional credit sources such as banks or credit cards. A Georgetown University McDonough School of Business Study identified this demographic with the following...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|