Encore Capital Group

ECPG

Market cap $1.96B

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.

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.

Encore Capital's outlook hinges on U.S. debt supply, record collections and funding discipline after a sharp 58.1% year-to-date rally.

Encore Capital still looks inexpensive after its rally, with low earnings multiples and higher forecasts offset by leverage, legal costs and concentration risks.

ECPG's tech-led collection gains and strong U.S. supply are lifting results, but legal costs, funding pressure and Europe remain key tests.

While subdued asset quality and macro uncertainty are concerns, higher rates for long, digitization and easier lending criteria support the Zacks Consumer Loans industry. So, firms like CACC, ENVA and ECPG are poised to gain.

ECPG, DK and DVA made it to the Zacks Rank #1 (Strong Buy) value stocks list on June 17, 2026.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

ECPG, CMCO and ALTO made it to the Zacks Rank #1 (Strong Buy) value stocks list on June 10, 2026.

PGY, GDOT and ECPG made it to the Zacks Rank #1 (Strong Buy) value stocks list on June 1st, 2026.