Why Is PRA Group (PRAA) Down 10% Since Last Earnings Report?

Zacks
03-21

It has been about a month since the last earnings report for PRA Group (PRAA). Shares have lost about 10% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is PRA Group due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 8.85% due to these changes.

VGM Scores

At this time, PRA Group has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise PRA Group has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

PRA Group is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Globe Life (GL), a stock from the same industry, has gained 3.5%. The company reported its results for the quarter ended December 2024 more than a month ago.

Globe Life reported revenues of $1.46 billion in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $3.14 for the same period compares with $2.80 a year ago.

For the current quarter, Globe Life is expected to post earnings of $3.23 per share, indicating a change of +16.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Globe Life. Also, the stock has a VGM Score of C.

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PRA Group, Inc. (PRAA) : Free Stock Analysis Report

Globe Life Inc. (GL) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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