"Everything is lining up for FCFS to continue its record growth." Bryan Bottarelli, Head Trade Tactician, Monument Traders Alliance There's a huge demand for short-term cash right now, Utility costs are rising, with residential electricity prices up 11% this year. Credit card delinquencies also rose 7% over the same timeframe, so borrowing money is becoming a less viable way for consumers to deal with rising costs. It's why I recommended First Cash Holdings (FCFS) in Catalyst Cash-outs a few weeks ago. You see… FCFS is one of the few companies that offers one of the oldest forms of banking - bartering. Due to high-demand for fast money, FCFS stock is on a historic run. Last Friday, it soared to 52-week highs after beating earnings. It's now up 44% year-to-date, and 58% since the beginning of the year. But despite its historic run, almost nobody is talking about FCFS. Investors are focused safe-haven metal plays like Freemont McMoran (FCX) or SPDR Gold Shares (GLD). Yet even with its recent run up, I believe FCFS is still undervalued. It's currently trading at 17x forward 2025 revenues. Over the last decade, that number has been around 23x. FCFS also recently acquired a group called H&T group, which is essentially the largest pawn broker in the United Kingdom. So now it's an entirely global play to play America's oldest form of banking. It also pays a 1.2% dividend and it's recession-proof since most people will still need cash in the event of a recession. So in short - everything is lining up for FCFS to continue its record growth. |
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