(EZPW) - This is a stock with strong fundamentals and powerful market momentum

Full Analysis EZCorp isn't expected to report earnings until Jul 19, but the fireworks began just in time for the Fourth. Last Friday, EZPW raised its guidance for the quarter that ended in June to between 35 and 37 cents per share, well above the consensus estimate of 22 cents. For the full year, EXPW raised its guidance to between $1.85 and $1.80, up about 12% from previous estimates. Noteworthy is the fact that EZPW had positive earnings surprises in six out of the last seven quarters. Technical Analysis On Monday, EZPW took off like a rocket, gaining almost 14% on heavy volume. In addition to the explosive move, the stock set new 52-week highs on Monday. With the stock already up 142% for the year, the logical question becomes "Can it still move higher?" The answer is likely yes. EZPW's stock is being driven by dramatic improvements in its earnings potential, so there is real substance behind the breakout of the stock. With no overhead resistance, the stock will now move higher in search of a new supply/demand balance point. This is a stock with strong fundamentals and powerful market momentum. A classic Momentum investor play. Buying a stock like EZPW always leads to concerns. Many investors just can't pull the trigger on buying a stock making new highs. And yet a stock making new highs already has powerful forces behind it, like EZPW's earnings increases. In addition, by setting new highs, the stock has proven that other investors are willing to put their 'money where their mouth is' (one of the reasons watching volume numbers is so important). Background Ezcorp Inc. is engaged in establishing, acquiring, and operating pawnshops which function as convenient sources of consumer credit and as value-oriented specialty retailers of primarily previously-owned merchandise. Through its lending function, the company makes relatively small, non-recourse loans secured by pledges of tangible personal property. The company contracts for a pawn service charge to compensate it for each pawn loan. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. The ranks are updated every Monday morning on Zacks.com. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home