Is Encore Capital Group, Inc. (NASDAQ:ECPG) a buy in 2026?
Yes, on balance. The Compass leans toward accumulating Encore Capital Group, Inc. at current levels.
Consumer charge-offs are flooding back to 2008-level supply, and Encore buys that paper at the cheapest prices in a decade.
Where ECPG is headed
Encore is a debt-buying business at the exact point in the cycle when its inputs get cheap and abundant. US credit card charge-off rates pushed past 4.8% through 2025, the highest reading since the GFC, and the banks selling that paper finally capitulated on price after two years of holding out for better marks. MCM, Encore's US arm, has been the buyer on the other side. Portfolio purchases ran above $900m in 2025, the largest deployment in the company's history, and management has guided to similar or higher levels through 2026. Each vintage of paper bought at these prices throws off cash for the next 6-8 years. By late 2027, the back book of 2024-2026 vintages should be generating record Estimated Remaining Collections, and the market will be staring at a company earning $14-16 per share against a stock that today trades on six times trailing earnings.
Read the full Compass Direction on ECPG
The complete destination call, the overlooked angle, milestones, and bull, base, and bear price scenarios (around $82.57).
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Frequently asked questions
Is Encore Capital Group, Inc. (NASDAQ:ECPG) a buy in 2026?
Yes, on balance. The Compass leans toward accumulating Encore Capital Group, Inc. at current levels. Consumer charge-offs are flooding back to 2008-level supply, and Encore buys that paper at the cheapest prices in a decade.
What is ECPG's Compass Score?
Encore Capital Group, Inc. scores 82/100 on Alexandria's Compass, placing it in the "True North" tier. Scores blend eight factors and update weekly.
What is the price target for ECPG?
Alexandria's full Compass Direction includes bull, base, and bear price scenarios with the valuation math behind each. Read the full breakdown on the ECPG page.
Compass verdicts are AI-generated, forward-looking editorial research from publicly available data, not investment advice or a recommendation regarding any security. Scores and verdicts update as the data changes.