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 70, which is 39 points higher than the credit service industry average of 31. It passed 27 out of 38 due diligence checks and has strong fundamentals. 360 Digitech has seen its stock return 4.59% over the past year, overperforming other credit service stocks by 28 percentage points.

360 Digitech has an average 1 year price target of $25.39, an upside of 42.72% from 360 Digitech's current stock price of $17.79.

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.

Open Lending (NASDAQ:LPRO) is the second best credit service stock with a Zen Score of 62, which is 31 points higher than the credit service industry average of 31. It passed 20 out of 33 due diligence checks and has strong fundamentals. Open Lending has seen its stock lose -65.67% over the past year, underperforming other credit service stocks by -42 percentage points.

Open Lending has an average 1 year price target of $10.75, an upside of 56.71% from Open Lending's current stock price of $6.86.

Open Lending stock has a consensus Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Open Lending, 25% have issued a Strong Buy rating, 37.5% have issued a Buy, 25% have issued a hold, while 0% have issued a Sell rating, and 12.5% have issued a Strong Sell.

Lexinfintech Holdings (NASDAQ:LX) is the third best 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. Lexinfintech Holdings has seen its stock lose -27.99% over the past year, underperforming other credit service stocks by -5 percentage points.

Lexinfintech Holdings has an average 1 year price target of $3.60, an upside of 57.21% from Lexinfintech Holdings's current stock price of $2.29.

Lexinfintech Holdings stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Lexinfintech Holdings, 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 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 24.87%, which is 19 percentage points higher than the credit service industry average of 6.07%.

Lufax Holding's dividend payout ratio of 85.2% indicates that its high dividend yield is sustainable for the long-term.

Goldman Sachs Bdc (NYSE:GSBD) has an annual dividend yield of 13.07%, which is 7 percentage points higher than the credit service industry average of 6.07%. 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 333.3% indicates that its high dividend yield might not be sustainable for the long-term.

Barings Bdc (NYSE:BBDC) has an annual dividend yield of 12.63%, which is 7 percentage points higher than the credit service industry average of 6.07%. 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 1,440% indicates that its high dividend yield might not be sustainable for the long-term.

Credit service stocks were down -1.98% in the last day, and up 0.46% over the last week. Capital One Financial was the among the top losers in the credit services industry, dropping -3.75% yesterday.

Shares of banks and financial services stocks are trading lower amid overall market volatility following the Fed's rate decision as well as continued banking volatility.

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 53 points higher than the credit service industry average of 47. It passed 7 out of 7 valuation due diligence checks.

Atlanticus Holdings's stock has dropped -55.87% in the past year. It has underperformed other stocks in the credit service industry by -32 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 53 points higher than the credit service industry average of 47. It passed 7 out of 7 valuation due diligence checks.

Lexinfintech Holdings's stock has dropped -27.99% in the past year. It has underperformed other stocks in the credit service industry by -5 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 53 points higher than the credit service industry average of 47. It passed 7 out of 7 valuation due diligence checks.

Medallion Financial's stock has dropped -16.2% in the past year. It has overperformed other stocks in the credit service industry by 7 percentage points.