Based on the aggregated intelligence of 110,000 investors participating in Motley Fool CAPS, the Fool's free investing community, bad-debt collector Portfolio Recovery Associates (Nasdaq: PRAA) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.
With that in mind, let's take a closer look at Portfolio Recovery's business, and see what CAPS investors are saying about the stock right now.
Portfolio Recovery facts
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Headquarters (Founded)
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Norfolk, Virginia (1996)
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Market Cap
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$585.91M
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Industry
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Specialized finance
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TTM Revenue
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$230.84M
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Management
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Co-Founder/CEO Steven Frederickson
Co-Founder/CFO Kevin Stevenson
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Return on Equity (avg. last three years)
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19.7%
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CAPS players bullish on PRAA also bullish on
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Nuance Communications (Nasdaq: NUAN), First Marblehead (NYSE: FMD), Middleby (Nasdaq: MIDD)
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CAPS players bearish on PRAA also bearish on
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General Motors (NYSE: GM), Citigroup (NYSE: C), Netflix (Nasdaq: NFLX)
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 885 of 922 of the All-Star players who have rated Portfolio Recovery -- some 96% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include TMFOrangeblood and pjani06, both of whom are ranked in the top 10% of our community.
In June 2007, TMFOrangeblood said Portfolio Recovery is "the best company, by far, in a booming industry. Management is talented, dedicated, and disciplined. I believe investors with a long-term outlook will not be disappointed."
A more recent pitch by pjani06 last month agrees with that bullish attitude, highlighting the stock's current levels:
Great entry point for a company turning cheap debt paper into real cash earnings. ... especially when you can buy the debt pennies on the dollar. financial companies themselves are on firesale today... this company is well positioned to purchase the 'worthless' debt these banks are desperate to get rid of to keep favorable capital levels in the eyes of lenders, regulatory agencies, and the investor community. PRAA is in the right place, at the right time, and at today's valuations, at the right price.
What do you think about Portfolio Recovery -- or any other stock, for that matter? Make your voice heard on Motley Fool CAPS today. More than 110,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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