Is EZCORP Inc. (EZPW) the Best Small-Cap Value Stock to Buy Now?

We recently published a list of 10 Best Small-Cap Value Stocks to Buy Now. In this article, we are going to take a look at where EZCORP Inc. (NASDAQ:EZPW) stands against other best small-cap value stocks to buy now.

Earlier on February 24, Robert Teeter of Silvercrest Asset Management shared his perspective on small-cap stocks and highlighted their link to economic conditions and sensitivity to financing activity. He noted that the Trump trade initially boosted small caps due to expectations of economic acceleration and lower interest rates, both of which are favorable for these companies. However, policy uncertainty and weaker-than-expected economic data have delayed their rally. Teeter believes that small caps will come into their own later in the year, but for now, they are facing a choppy market with significant rotation.

In advising clients, Teeter emphasized the importance of diversification within the S&P 500. He pointed out that the equal-weight benchmark has been performing well this year, and within the tech sector, the average tech stock is outperforming the tech sector as a whole. This suggests that investors are seeking diversification to protect themselves against policy risks. Teeter also highlighted healthcare as an interesting sector and noted that it has faced challenges with profit margins following the pandemic but now seems to have stabilized. He also discussed international markets and observed that they had outperformed US markets at the start of the year. He sees opportunities in these markets due to good valuations and the stabilization of the dollar, which reduces dollar strength and benefits non-US sectors.

Given Teetar’s sentiment, small-cap value stocks might be a good option right now due to their historically strong long-term performance and current undervaluation relative to large-cap stocks. According to Teeter, small caps are expected to recover later this year.

Methodology

We first used the Finviz stock screener to compile a list of small-cap value stocks that were trading between $300 million and $2 billion. We then picked 10 stocks with a forward P/E ratio under 15, that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024.

Note: All data was recorded on March 19.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Is EZCORP Inc. (EZPW) the Best Small-Cap Value Stock to Buy Now?

An employee in a pawn store, counting jewelry and consumer electronics that were pawned.

EZCORP Inc. (NASDAQ:EZPW)

Forward P/E Ratio as of March 19: 10.73

Market Capitalization as of March 19: $780.12 million

Number of Hedge Fund Holders: 28

EZCORP Inc. (NASDAQ:EZPW) provides pawn services in the US and Latin America. It offers pawn loans secured by personal property and retails forfeited collateral and pre-owned merchandise. It operates through the US Pawn and Latin America Pawn segments. It provides digital services via EZ+ for online transaction management, under brands like EZPAWN and Empeño Fácil.

The company’s Pawn Loan Origination (PLO) segment achieved record revenue growth in FQ1 2025. PLO increased by 16% year-over-year and reached $282.9 million. This growth was supported by the increases in earning assets, which rose by 20% in FQ1, and Pawn Service Charge (PSC) revenues, which rose by 13%. EZCORP Inc. (NASDAQ:EZPW) plans to continue driving PLO growth through a focus on operational excellence, enhanced customer engagement, and the strategic use of technology.

The company implemented initiatives to enhance customer experience. These included expanding the third-party buy now pay later program and launching a longer-term layaway option. The introduction of the layaway option led to a 13% increase in new layaways. A layaway option allows customers to reserve an item by making partial payments over time, receiving it only after the full amount is paid. The Easy Plus rewards program also drove engagement and accounted for 77% of all transactions during FQ1.

Overall, EZPW ranks 8th on our list of best small-cap value stocks to buy now. While we acknowledge the growth potential of EZPW, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EZPW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.