Encore Capital Group shares have surged 58.1% year to date, driven by record first-quarter 2026 collections of $718.4 million, up 19% year over year, and favorable U.S. debt-purchasing conditions. Its U.S. business, MCM, generated $556 million of those collections, a 23% increase, prompting management to raise the 2026 global collections outlook to nearly $2.8 billion, representing 8% growth, while keeping global portfolio purchase guidance at $1.4 to $1.5 billion. The Zacks Consensus Estimate projects sales growth of 5.5% for 2026 and 2.7% for 2027. However, the company faces concentration risk from its European unit Cabot, which is pressured by subdued lending and strong competition, and carries $4.03 billion in borrowings that leave earnings sensitive to funding costs. ECPG currently holds a Zacks Rank of 1, or Strong Buy, with a Value Score of B, while peers PRA Group and FirstCash Holdings carry a Zacks Rank of 3, or Hold.
Encore Capital Group IncRecord Q1 2026 collections of $718.4M, up 19% YoY, driven by strong U.S. debt-purchasing conditions and raised global collections outlook.
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