This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
"EZCORP (NASDAQ: EZPW) -- our top pick for 2009 -- is poised to benefit from an economy that will probably see more tough times before improving," says Alex Kolb.
The editor of Zacks Breakout Letter explains, "The company operates pawnshops that provide the type of lending and credit services many turn to during rough economic conditions."
"EZCORP is expanding through acquisitions. It recently acquired the assets of 11 pawnshops located in Las Vegas and Henderson, Nevada. The opening of more stores in U.S. and Mexico is on the horizon for 2009.
"Furthermore, the company's earnings per share are expected to grow 18% over the next 3 to 5 years, which is also ahead of the industry average.
"The pawnshop play has a solid record of matching or beating analyst estimates. Dating back to 2004, EZPW missed consensus forecasts only 2 times, was in-line with estimates 4 times and was ahead of projections during the other quarters.
"Going forward, brokerage analysts are upbeat on the company's earnings expectations. Analysts boosted earnings estimates for the year ending September 2009 by 11% during a recent 60-day period, forecasting earnings per share growth of 24%.
"The consensus earnings estimate also calls for 16% growth for fiscal 2010. The company's stellar fundamentals further strengthen its potential to outperform in 2009. EZCORP carries no debt and offers a return on equity of (ROE) of 21%, which is double the industry average."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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