5 Best Micro and Small Cap Stocks to Buy According to Jim Simons’ Renaissance Technologies

2. Ezcorp Inc (NASDAQ:EZPW)

Renaissance Technologies Equity Stake: $54.75 Million

Number of Hedge Fund Holders: 26

Stock Upside Potential: 24.47%

Market Cap: $2.0 Billion

Ezcorp Inc (NASDAQ:EZPW) is one of the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies. Ezcorp stock has gained more than 65% year-to-date and surged almost 150% over the past year. Analysts see more upside in this pawn shop stock.

On May 20, Canaccord Genuity reaffirmed its Buy rating on Ezcorp stock with a price target of $44 on the shares. The firm based its decision on insights that it said showed strong investor interest in pawn shop stocks.

Canaccord Genuity recently hosted investor meetings with Ezcorp CEO Lachie Given in Boston. From these meetings, the firm noted a long-term, quality tilt in Ezcorp’s investor lineup in the more than 40 months it has been covering the stock. This is partly highlighted by the company’s capital raising on easy terms. As an example, Ezcorp last year issued $300 million of senior notes maturing in 2032 in a private offering without covenants attached.

Canaccord Genuity also highlighted how Ezcorp has delivered record results since it initiated coverage of the stock in January 2023. Additionally, analyst Brian McNamara said that Ezcorp trades at an EV/EBITDA discount of roughly 47% to its rival FirstCash Inc.

Texas-based Ezcorp Inc (NASDAQ:EZPW) is a pawn shop operator with footprints across the US and Latin America. In addition to providing pawn loans, the company also sells merchandise. These are usually used items purchased from customers or collateral forfeited from its pawn lending operation.