Geoffrey Ching enjoys investing as a part hobby, part business. His stock picks generally consist of stable businesses trading at a discount to other companies in a similar sector. He is also the founder of VectorGrader.com, a website which provides quantitative strategies for investors.
Continuing with our look at stock valuations relative to their industry rather than the market, today we are looking at valuations of the largest 5 cash advance and/or pawn shop stocks. Looking at valuations from a viewpoint within an industry rather than versus the market can improve returns and lower risks because some industries deserve higher or lower valuations.
The stock with the lowest P/S ratio is Advance America, Cash Advance Centers (AEA). This company has struggled with finding growth, with revenue and earnings growth being negative over the last few years.
In contrast to AEA, First Cash Financial Services (FCFS), the stock with the highest P/S, has had earnings growth rates of over 20%.
Our stock rating system, which takes into account many other indicators, likes EZCORP (EXPW) the best, giving it a rating of 86. On a scale between 0 and 100, that's not super, but it's still pretty good.
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Valuations of Pawn Shop Stocks 0 comments
The stock with the lowest P/S ratio is Advance America, Cash Advance Centers (AEA). This company has struggled with finding growth, with revenue and earnings growth being negative over the last few years.
In contrast to AEA, First Cash Financial Services (FCFS), the stock with the highest P/S, has had earnings growth rates of over 20%.
Our stock rating system, which takes into account many other indicators, likes EZCORP (EXPW) the best, giving it a rating of 86. On a scale between 0 and 100, that's not super, but it's still pretty good.
Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.
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