Sectors & IndustriesFinancial ServicesCredit Services

Best Credit Service Stocks to Buy Now (2023)

Top credit service stocks in 2023 ranked by overall Zen Score. See the best credit service stocks to buy now, according to analyst forecasts for the credit services industry.

According to Zen Score, the 3 best credit service stocks to buy right now are:

360 Digitech (NASDAQ:QFIN) is the top credit service stock with a Zen Score of 59, which is 31 points higher than the credit service industry average of 28. It passed 23 out of 38 due diligence checks and has strong fundamentals. 360 Digitech has seen its stock return 15.18% over the past year, overperforming other credit service stocks by 30 percentage points.

360 Digitech has an average 1 year price target of $25.39, an upside of 15.41% from 360 Digitech's current stock price of $22.00.

360 Digitech stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering 360 Digitech, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Lexinfintech Holdings (NASDAQ:LX) is the second best credit service stock with a Zen Score of 58, which is 30 points higher than the credit service industry average of 28. It passed 18 out of 33 due diligence checks and has strong fundamentals. Lexinfintech Holdings has seen its stock return 1.52% over the past year, overperforming other credit service stocks by 17 percentage points.

Lexinfintech Holdings has an average 1 year price target of $9.15, an upside of 173.13% from Lexinfintech Holdings's current stock price of $3.35.

Lexinfintech Holdings stock has a consensus Hold recommendation according to Wall Street analysts. Of the 4 analysts covering Lexinfintech Holdings, 25% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 25% have issued a Strong Sell.

Open Lending (NASDAQ:LPRO) is the third best credit service stock with a Zen Score of 53, which is 25 points higher than the credit service industry average of 28. It passed 18 out of 33 due diligence checks and has strong fundamentals. Open Lending has seen its stock lose -52.14% over the past year, underperforming other credit service stocks by -37 percentage points.

Open Lending has an average 1 year price target of $14.79, an upside of 65.21% from Open Lending's current stock price of $8.95.

Open Lending stock has a consensus Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Open Lending, 28.57% have issued a Strong Buy rating, 28.57% have issued a Buy, 28.57% have issued a hold, while 0% have issued a Sell rating, and 14.29% have issued a Strong Sell.

Out of 24 credit service stocks that have issued dividends in the past year, the 3 credit service stocks with the highest dividend yields are:

Lufax Holding (NYSE:LU) has an annual dividend yield of 17.09%, which is 12 percentage points higher than the credit service industry average of 4.84%.

Lufax Holding's dividend payout ratio of 58.4% indicates that its high dividend yield is sustainable for the long-term.

Goldman Sachs Bdc (NYSE:GSBD) has an annual dividend yield of 11.34%, which is 6 percentage points higher than the credit service industry average of 4.84%. Goldman Sachs Bdc's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Goldman Sachs Bdc's dividend has not shown consistent growth over the last 10 years.

Goldman Sachs Bdc's dividend payout ratio of 204.5% indicates that its high dividend yield might not be sustainable for the long-term.

Barings Bdc (NYSE:BBDC) has an annual dividend yield of 10.84%, which is 6 percentage points higher than the credit service industry average of 4.84%. Barings Bdc's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Barings Bdc's dividend has not shown consistent growth over the last 10 years.

Barings Bdc's dividend payout ratio of 320.7% indicates that its high dividend yield might not be sustainable for the long-term.

Credit service stocks were down -1.87% in the last day, and up 4.24% over the last week. Lufax Holding was the among the top losers in the credit services industry, dropping -7.72% yesterday.

Shares of several Chinese stocks are trading lower after the US government shot down a balloon originating from China.

Based on WallStreetZen's Valuation Score, the 3 most undervalued credit service stocks right now are:

Atlanticus Holdings (NASDAQ:ATLC) is the most undervalued credit service stock based on WallStreetZen's Valuation Score. Atlanticus Holdings has a valuation score of 100, which is 58 points higher than the credit service industry average of 42. It passed 7 out of 7 valuation due diligence checks.

Atlanticus Holdings's stock has dropped -48.58% in the past year. It has underperformed other stocks in the credit service industry by -33 percentage points.

Lexinfintech Holdings (NASDAQ:LX) is the second most undervalued credit service stock based on WallStreetZen's Valuation Score. Lexinfintech Holdings has a valuation score of 100, which is 58 points higher than the credit service industry average of 42. It passed 7 out of 7 valuation due diligence checks.

Lexinfintech Holdings's stock has gained 1.52% in the past year. It has overperformed other stocks in the credit service industry by 17 percentage points.

Medallion Financial (NASDAQ:MFIN) is the third most undervalued credit service stock based on WallStreetZen's Valuation Score. Medallion Financial has a valuation score of 100, which is 58 points higher than the credit service industry average of 42. It passed 7 out of 7 valuation due diligence checks.

Medallion Financial's stock has gained 20.4% in the past year. It has overperformed other stocks in the credit service industry by 36 percentage points.