At a time when the major indexes and growth leaders are plunging, searching for stocks to buy is like going against a powerful tide. Enova International in the financial stocks group is worth keeping an eye on. Enova stock is Thursday's selection for IBD 50 Stocks To Watch.
It never is a bad time to build watchlists. For this, look for stocks that remain in an uptrend. On IBD MarketSurge, it's easy to tell an uptrend because these stocks will be in clearly-formed bases.
But those setups can easily fail if the tide remains powerful amid hefty tariffs. Also, proceeding with caution is important.
Enova is in a cup base that has a buy point of 117.56. The buy point is its all-time high. Shares fell along with others on Thursday but the stock is holding above its 200-day moving average within the base for now.
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Financial Stocks: Double-Digit Sales Growth
Enova's sales growth has been steady over the past eight quarters, ranging between 20% and 26%. With the exception of one quarter, earnings have grown as well.
Shares rose after fourth-quarter results on Feb. 5 and hit their all-time high before pulling back to the 200-day moving average and rising again to form the base. Sales grew 25% to $729.6 million while earnings per share of $2.61 per share increased 43% from the prior year.
Analysts are also optimistic about the company's earnings growth in 2025 and 2026. Their estimates suggest 26% growth in earnings to $11.51 per share for 2025 and an 18% increase in 2026 to $13.60 a share.
Enova provides an online lending platform for small businesses and consumers. Enova stock ranks first in Investor's Business Daily's financial stocks-consumer loans group, according to IBD Stock Checkup. It has a Composite Rating of 98 and EPS Rating of 93. The Relative Strength Rating is also high at 95.
Mutual funds have been net buyers of the stock over the past 13 weeks, giving the stock an Accumulation/Distribution Rating of B-. Funds own 68% of outstanding shares. Further, more funds have been net buyers of Enova stock in the past three quarters.
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