Consumer discretionary stocks with strong revenue growth and attractive valuations

Consumer Portfolio Services (CPSS) announced record third-quarter 2026 results on an earnings call, posting revenue of $131.9 million, up 22% year over year. EPS improved to $0.30, a 50% increase from $0.20 a year earlier. Originations reached a record $815 million, up 108.5% from $391 million in the same period last year.

Warehouse funding capacity topped $1 billion for the first time, providing the company with more room to expand. The fair value loan portfolio grew to $4.6 billion, a 28% increase from $3.6 billion.

Management stated that the company's growth occurred without relaxing credit standards. The company's fair value loan portfolio reached $4.6 billion at the end of September, compared to $3.6 billion a year earlier.

Revenue for the nine months to September 2026 reached $365.6 million, up 12% from $325 million in the same period the prior year. EPS for the nine months was $0.80, a 36% increase from $0.59.

Net income grew 42% year over year to $7 million, while pre-tax income rose 44% to $10.1 million. The company's current ratio stood at 5.79, indicating strong liquidity.

CPSS's stock jumped 10.37% in after-hours trading following the earnings release, reaching $9.90 before easing to $9.64 later in the day. The stock is now near the top of its 52-week range of $7.46 to $10.49, reflecting positive sentiment among investors.