| Stock (Symbol) | Stock Price | |
Portfolio Recovery Assoc. (PRAA) |
$57 |
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| Data is as of | Expected to Report | Sector |
November 12, 2013 |
Feb 2 – Feb 14 |
Finance |
| Sharek’s Take | ||
 Portfolio Recovery Associates is on a roll this year and the run is justifiable. Revenue rose 31% last quarter as cash collections rose 27%. The company has invested $550 million in unpaid collections this year and collected on $300 million just last quarter. That’s how PRAA works: it buys bad debt, works it, and gets paid. The company also announced it has signed a lease for a new 45,000 sq ft call center in Dallas-Fort worth, and has discontinued its call center in the Philippines. I feel these collection calls from American voices will be more effective. The company also has centers in Vegas, Kansas, Jackson TN, Birmingham AL and Virginia. PRAA thinks it has the “best and most effective domestic collections workforce in the industry” and I don’t doubt it. |
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| One-Year Chart | ||
 All this growth and the stock has a P/E of only 15. This will certainly be one of my top stocks to own in 2014. Estimates look great and PRAA has been beating the street so 35% growth looks reasonable. |
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| Earnings Table | ||
 Profit growth was a sizzling 57%, revenue increased 31%. Again, this stock has a P/E of 15.The company has now beaten the street by at least ten cents a share for at least the last six qtrs. Annual Profit Estimates continue to grow.Quarterly growth looks great for the next two quarters. I can imagine 35% growth coming. The further out estimates need time to cook. |
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| Fair Value | ||
 I feel as though Wall Street has ignored what a great growth story PRAA is. The P/E should be 20 and I feel it’s getting there. Notice the company got a 20 P/E a decade ago. There’s still significant upside in these shares. |
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| s Ten-Year Chart | ||
 This looks like a parabolic run — often a sign a stock’s due for a fall — but I feel PRAA should have been up here in the first place. The stock was punished badly for the 2008 recession and now has bounced back nicely. Note profit growth of 23% a year is still less than the stock growth of 20% a year. The stock has to catch up. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
4 of 25 |
Portfolio Recovery Associates is shining bright. This stock has a P/E of 15 and might grow profits 30%-35% the next couple of quarters. I’m impressed with these numbers and now feel PRAA is a top 5 stock going into 2014.
PRAA is ranked 4th of 25 stocks in the Growth Portfolio Power Rankings and 4th in the 10 stock Aggressive Growth Portfolio Power Rankings. |
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Aggressive Growth Portfolio
4 of 10 |
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