DFC Global Corp (DLLR): This Company Benefits From the Decline of Traditional Banking

In addition, it only generates one-fifth of its revenue from consumer loans. While this is positive in the short term in light of increasing regulatory scrutiny over payday loans, EZCORP Inc (NASDAQ:EZPW) is not in a prime position to benefit from the phenomenal growth in consumer loans (especially online) in the mid-to-long term.

Conclusion

It is important to ignore short-term events, such as earnings disappointments and industry-wide negative news flow, and instead focus on the long-term secular trends, when it comes to picking stocks. DFC Global Corp (NASDAQ:DLLR) is cheap at 6.6 times forward P/E and 0.5 times PEG, rewarding investors willing to stick with it for the long term.

Mark Lin has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article This Company Benefits From the Decline of Traditional Banking originally appeared on Fool.com.

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