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:

Lexinfintech Holdings (NASDAQ:LX) is the top credit service stock with a Zen Score of 57, which is 24 points higher than the credit service industry average of 33. It passed 21 out of 38 due diligence checks and has strong fundamentals. Lexinfintech Holdings has seen its stock lose -1.66% over the past year, underperforming other credit service stocks by -6 percentage points.

Lexinfintech Holdings has an average 1 year price target of $2.12, an upside of 19.1% from Lexinfintech Holdings's current stock price of $1.78.

Lexinfintech Holdings stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Lexinfintech Holdings, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% 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 55, which is 22 points higher than the credit service industry average of 33. It passed 20 out of 38 due diligence checks and has strong fundamentals. Qifu Technology has seen its stock lose -1.08% over the past year, underperforming other credit service stocks by -5 percentage points.

Qifu Technology has an average 1 year price target of $24.50, an upside of 57.86% from Qifu Technology's current stock price of $15.52.

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.

Atlanticus Holdings (NASDAQ:ATLC) 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 17 out of 33 due diligence checks and has strong fundamentals. Atlanticus Holdings has seen its stock return 7.19% over the past year, overperforming other credit service stocks by 3 percentage points.

Atlanticus Holdings has an average 1 year price target of $42.33, an upside of 37.13% from Atlanticus Holdings's current stock price of $30.87.

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

Out of 25 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 13.05%, which is 9 percentage points higher than the credit service industry average of 4.23%. Oaktree Specialty Lending's dividend payout is not stable, having dropped more than 10% four 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 160.1% indicates that its high dividend yield might not be sustainable for the long-term.

Barings Bdc (NYSE:BBDC) has an annual dividend yield of 11.09%, which is 7 percentage points higher than the credit service industry average of 4.23%. Barings Bdc's dividend payout is not stable, having dropped more than 10% six 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 111.1% indicates that its high dividend yield might not be sustainable for the long-term.

Onemain Holdings (NYSE:OMF) has an annual dividend yield of 9.46%, which is 5 percentage points higher than the credit service industry average of 4.23%. Onemain Holdings's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Onemain Holdings's dividend has shown consistent growth over the last 10 years.

Onemain Holdings's dividend payout ratio of 72.7% indicates that its high dividend yield is sustainable for the long-term.

Credit service stocks were up 1.11% in the last day, and up 2.21% over the last week. Discover Financial Services was the among the top gainers in the credit services industry, gaining 4.62% yesterday.

Discover Financial Services shares are trading higher after the company announced it will explore the sale of the Discover Student Loans portfolio and the transfer of servicing of these loans to a third-party provider.

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 54 points higher than the credit service industry average of 46. It passed 7 out of 7 valuation due diligence checks.

Atlanticus Holdings's stock has gained 7.19% in the past year. It has overperformed other stocks in the credit service industry by 3 percentage points.

Credit Acceptance (NASDAQ:CACC) is the second most undervalued credit service stock based on WallStreetZen's Valuation Score. Credit Acceptance has a valuation score of 86, which is 40 points higher than the credit service industry average of 46. It passed 6 out of 7 valuation due diligence checks.

Credit Acceptance's stock has dropped -3.58% in the past year. It has underperformed other stocks in the credit service industry by -8 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 86, which is 40 points higher than the credit service industry average of 46. It passed 6 out of 7 valuation due diligence checks.

Consumer Portfolio Services's stock has gained 9.98% in the past year. It has overperformed other stocks in the credit service industry by 6 percentage points.