Sectors & IndustriesFinancial ServicesCredit Services

Best Credit Service Stocks to Buy Now (2022)

Top credit service stocks in 2022 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:

Open Lending (NASDAQ:LPRO) is the top credit service stock with a Zen Score of 60, which is 27 points higher than the credit service industry average of 33. It passed 20 out of 33 due diligence checks and has strong fundamentals. Open Lending has seen its stock lose -78.14% over the past year, underperforming other credit service stocks by -38 percentage points.

Open Lending has an average 1 year price target of $17.71, an upside of 109.14% from Open Lending's current stock price of $8.47.

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.

Firstcash Holdings (NASDAQ:FCFS) is the second best credit service stock with a Zen Score of 58, which is 25 points higher than the credit service industry average of 33. It passed 21 out of 38 due diligence checks and has strong fundamentals. Firstcash Holdings has seen its stock lose -11.64% over the past year, overperforming other credit service stocks by 29 percentage points.

Firstcash Holdings has an average 1 year price target of $89.33, an upside of 14.79% from Firstcash Holdings's current stock price of $77.82.

Firstcash Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Firstcash Holdings, 33.33% have issued a Strong Buy rating, 0% have issued a Buy, 66.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

360 Digitech (NASDAQ:QFIN) is the third best credit service stock with a Zen Score of 54, which is 21 points higher than the credit service industry average of 33. It passed 20 out of 38 due diligence checks and has strong fundamentals. 360 Digitech has seen its stock lose -39.81% over the past year, overperforming other credit service stocks by 1 percentage points.

360 Digitech has an average 1 year price target of $25.39, an upside of 92.35% from 360 Digitech's current stock price of $13.20.

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.

Out of 26 credit service stocks that have issued dividends in the past year, the 3 credit service stocks with the highest dividend yields are:

Onemain Holdings (NYSE:OMF) has an annual dividend yield of 11.46%, which is 6 percentage points higher than the credit service industry average of 5.42%.

Onemain Holdings's dividend payout ratio of 82.3% indicates that its high dividend yield is sustainable for the long-term.

Goldman Sachs Bdc (NYSE:GSBD) has an annual dividend yield of 11.04%, which is 6 percentage points higher than the credit service industry average of 5.42%. 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 140.2% indicates that its high dividend yield might not be sustainable for the long-term.

Owl Rock Capital (NYSE:ORCC) has an annual dividend yield of 10.79%, which is 5 percentage points higher than the credit service industry average of 5.42%.

Owl Rock Capital's dividend payout ratio of 151.2% indicates that its high dividend yield might not be sustainable for the long-term.

Credit service stocks were down -1.92% in the last day, and down -8.3% over the last week. Pagaya Technologies was the among the top losers in the credit services industry, dropping -8.64% yesterday.

Shares of several companies in the broader tech sector are trading lower amid a rise in treasury yields as traders continue to assess Wednesday's Fed commentary and 75 bps rate hike. Rising rates decrease the present value of future cash flows, which negatively impacts growth stock valuations.

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

Lexinfintech Holdings (NASDAQ:LX) is the most undervalued credit service stock based on WallStreetZen's Valuation Score. Lexinfintech Holdings has a valuation score of 100, which is 51 points higher than the credit service industry average of 49. It passed 7 out of 7 valuation due diligence checks.

Lexinfintech Holdings's stock has dropped -70.07% in the past year. It has underperformed other stocks in the credit service industry by -29 percentage points.

Security National Financial (NASDAQ:SNFCA) is the second most undervalued credit service stock based on WallStreetZen's Valuation Score. Security National Financial has a valuation score of 100, which is 51 points higher than the credit service industry average of 49. It passed 7 out of 7 valuation due diligence checks.

Security National Financial's stock has dropped -24.22% in the past year. It has overperformed other stocks in the credit service industry by 16 percentage points.

360 Digitech (NASDAQ:QFIN) is the third most undervalued credit service stock based on WallStreetZen's Valuation Score. 360 Digitech has a valuation score of 86, which is 37 points higher than the credit service industry average of 49. It passed 6 out of 7 valuation due diligence checks.

360 Digitech's stock has dropped -39.81% in the past year. It has overperformed other stocks in the credit service industry by 1 percentage points.