Sectors & IndustriesFinancial ServicesCredit Services

Best Credit Service Stocks to Buy Now (2024)

Top credit service stocks in 2024 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 29 points higher than the credit service industry average of 31. It passed 19 out of 33 due diligence checks and has strong fundamentals. Open Lending has seen its stock lose -24.78% over the past year, underperforming other credit service stocks by -47 percentage points.

Open Lending has an average 1 year price target of $7.33, an upside of 41.29% from Open Lending's current stock price of $5.19.

Open Lending stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Open Lending, 0% have issued a Strong Buy rating, 50% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Qifu Technology (NASDAQ:QFIN) is the second best credit service stock with a Zen Score of 57, which is 26 points higher than the credit service industry average of 31. It passed 21 out of 38 due diligence checks and has strong fundamentals. Qifu Technology has seen its stock return 18.62% over the past year, underperforming other credit service stocks by -3 percentage points.

Qifu Technology has an average 1 year price target of $23.80, an upside of 19.72% from Qifu Technology's current stock price of $19.88.

Qifu Technology stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Qifu Technology, 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.

Mastercard (NYSE:MA) is the third best credit service stock with a Zen Score of 56, which is 25 points higher than the credit service industry average of 31. It passed 22 out of 38 due diligence checks and has strong fundamentals. Mastercard has seen its stock return 17.3% over the past year, underperforming other credit service stocks by -4 percentage points.

Mastercard has an average 1 year price target of $513.88, an upside of 16.5% from Mastercard's current stock price of $441.10.

Mastercard stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 16 analysts covering Mastercard, 62.5% have issued a Strong Buy rating, 37.5% 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 24 credit service stocks that have issued dividends in the past year, the 3 credit service stocks with the highest dividend yields are:

Oaktree Specialty Lending (NASDAQ:OCSL) has an annual dividend yield of 11.77%, which is 8 percentage points higher than the credit service industry average of 3.93%. Oaktree Specialty Lending's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Oaktree Specialty Lending's dividend has shown consistent growth over the last 10 years.

Oaktree Specialty Lending's dividend payout ratio of 166.9% indicates that its high dividend yield might not be sustainable for the long-term.

Barings Bdc (NYSE:BBDC) has an annual dividend yield of 10.92%, which is 7 percentage points higher than the credit service industry average of 3.93%. Barings Bdc's dividend payout is not stable, having dropped more than 10% four times in the last 10 years. Barings Bdc's dividend has shown consistent growth over the last 10 years.

Barings Bdc's dividend payout ratio of 85% indicates that its high dividend yield is sustainable for the long-term.

Lexinfintech Holdings (NASDAQ:LX) has an annual dividend yield of 10.22%, which is 6 percentage points higher than the credit service industry average of 3.93%.

Lexinfintech Holdings's dividend payout ratio of 20.3% indicates that its high dividend yield is sustainable for the long-term.

Credit service stocks were up 1% in the last day, and down -0.99% over the last week. Regional Management was the among the top gainers in the credit services industry, gaining 8.03% yesterday.

Regional Management shares are trading higher after the company reported better-than-expected Q1 financial results.

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

Open Lending (NASDAQ:LPRO) is the most undervalued credit service stock based on WallStreetZen's Valuation Score. Open Lending has a valuation score of 86, which is 45 points higher than the credit service industry average of 41. It passed 6 out of 7 valuation due diligence checks.

Open Lending's stock has dropped -24.78% in the past year. It has underperformed other stocks in the credit service industry by -47 percentage points.

Atlanticus Holdings (NASDAQ:ATLC) is the second most undervalued credit service stock based on WallStreetZen's Valuation Score. Atlanticus Holdings has a valuation score of 71, which is 30 points higher than the credit service industry average of 41. It passed 5 out of 7 valuation due diligence checks.

Atlanticus Holdings's stock has dropped -3.28% in the past year. It has underperformed other stocks in the credit service industry by -25 percentage points.

Consumer Portfolio Services (NASDAQ:CPSS) is the third most undervalued credit service stock based on WallStreetZen's Valuation Score. Consumer Portfolio Services has a valuation score of 71, which is 30 points higher than the credit service industry average of 41. It passed 5 out of 7 valuation due diligence checks.

Consumer Portfolio Services's stock has dropped -17.33% in the past year. It has underperformed other stocks in the credit service industry by -39 percentage points.