10 Best Small-Cap Stocks With Huge Potential According to Reddit as Market Looks Beyond AI Trade

4. EZCORP Inc (NASDAQ:EZPW)

Number of Hedge Fund Investors: 32

EZCORP Inc (NASDAQ:EZPW) is a Texas-based pawn shop operator. Redditors like the stock due to the business’s appeal amid rising inflation and difficulties in security credit in the US. The stock is up 48% so far this year.

The company recently posted better-than-expected quarterly results. Pawn revenue in the US saw double-digit growth. It has grown its footprint across over 1,300 locations across five countries. The company also highlighted digital initiatives, omnichannel expansion, and inventory efficiency improvements that are likely to drive future growth.

Wasatch Micro-Cap Fund stated the following regarding EZCORP, Inc. (NASDAQ:EZPW) in its Q1 2025 investor letter:

“Another contributor to performance was EZCORP, Inc. (NASDAQ:EZPW), a provider of pawn services and loans in the U.S. and Latin America. As a defensive stock, EZCORP was one that investors gravitated toward given its counter cyclical demand. As discretionary income shrinks, EZCORP can be source of consumer credit. Additionally, the company recently announced the issuance of convertible senior notes in order to more favorably restructure its balance sheet.”