ECPG Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Encore Capital Group Inc (ECPG) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst sentiment, and recent price momentum make it a compelling choice. Despite some overbought technical indicators, the long-term growth potential outweighs short-term concerns.
The stock is in a bullish trend with MACD positively expanding (0.397), RSI at 84.15 indicating overbought conditions, and bullish moving averages (SMA_5 > SMA_20 > SMA_200). Key resistance levels are R1: 63.609 and R2: 65.874, with support at S1: 56.274 and S2: 54.009.
Record Q4 2025 portfolio purchases of $1.4 billion and 20% increase in collections to $2.6 billion.
Strategic share repurchase of 9% of outstanding shares for $90 million.
Q4 GAAP EPS of $3.37 exceeded expectations by $1.
Revenue growth of 78.3% YoY in Q4 2025, surpassing expectations by $51.36 million.
Analysts raised price targets to $90 and $70, maintaining Outperform ratings.
RSI indicates overbought conditions, suggesting potential short-term price pullback.
Net income dropped by -134.02% YoY in Q4 2025, and EPS declined by -135.77% YoY.
In Q4 2025, revenue increased by 100.88% YoY to $378.33 million, while net income dropped by -134.02% YoY to $76.66 million. EPS also declined by -135.77% YoY to $3.37. However, the company improved its cash efficiency margin to 57.8% and reduced operating expenses by 1%.
Analysts are bullish on the stock. Citizens raised the price target to $90 from $75, citing strong collections growth and improving margins. Northland raised the price target to $70 from $61, highlighting a favorable U.S. market and a strong balance sheet.
