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Relatively Low Forward Earnings Yield Detected in Shares of Cash America in the Consumer Finance Industry (CSH, FCFS, CACC, AXP, SLM)

By Nick Russo

Below are the three companies in the Consumer Finance industry with the lowest forward earnings yields. Using projected earnings for the current fiscal year, the forward earnings yield is useful to compare a stock's return vs. owning a similar stock or other yield assets (e.g. bonds). Generally, the higher the earnings yield, the more undervalued the stock.

Cash America ranks lowest with a forward earnings yield of 2.4%. Following is First Cash Financial Services with a forward earnings yield of 4.8%. Credit Acceptance ranks third lowest with a forward earnings yield of 8.2%.

American Express follows with a forward earnings yield of 8.4%, and SLM rounds out the bottom five with a forward earnings yield of 9.1%.

SmarTrend recommended that subscribers consider buying shares of American Express on March 1st, 2016 as our technology indicated a new Uptrend was in progress when shares hit $56.23. Since that recommendation, shares of American Express have risen 10.2%. We continue to monitor American Express for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: lowest forward earnings yield cash america first cash financial services credit acceptance american express