Consumer Portfolio Services (CPSS)
from Upside
Consumer Portfolio Services (CPSS) is a play on the upturn in U.S. auto sales. The company provides car loans to borrowers with past credit problems, low income, or limited credit histories. Consumer Portfolio Services, which buys loans from dealerships in nearly all 50 states, has purchased more than $10.2 billion in loans since its inception in 1991.
Strong results reflect a growing loan portfolio, favorable financing costs, and increased auto sales. September quarter earnings per share surged 73%, following a 200% increase in the June quarter.
Only two analysts offer profit estimates. For 2013, per-share earnings are expected to reach $0.64, up from $0.36. For 2014, the rising consensus stands at $1.04 per share.
Consumer Portfolio, with an Overall score of 98, is being initiated as a Buy.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, 1/6/14