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:

Open Lending (NASDAQ:LPRO) is the top credit service stock with a Zen Score of 71, which is 39 points higher than the credit service industry average of 32. It passed 23 out of 33 due diligence checks and has strong fundamentals. Open Lending has seen its stock lose -10.34% over the past year, underperforming other credit service stocks by -23 percentage points.

Open Lending has an average 1 year price target of $11.60, an upside of 63.15% from Open Lending's current stock price of $7.11.

Open Lending stock has a consensus Hold recommendation according to Wall Street analysts. Of the 5 analysts covering Open Lending, 20% have issued a Strong Buy rating, 40% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 20% have issued a Strong Sell.

Qifu Technology (NASDAQ:QFIN) is the second best credit service stock with a Zen Score of 67, which is 35 points higher than the credit service industry average of 32. It passed 26 out of 38 due diligence checks and has strong fundamentals. Qifu Technology has seen its stock return 17.26% over the past year, overperforming other credit service stocks by 5 percentage points.

Qifu Technology has an average 1 year price target of $24.50, an upside of 57.46% from Qifu Technology's current stock price of $15.56.

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.

Onemain Holdings (NYSE:OMF) is the third best credit service stock with a Zen Score of 55, which is 23 points higher than the credit service industry average of 32. It passed 20 out of 38 due diligence checks and has strong fundamentals. Onemain Holdings has seen its stock return 26.25% over the past year, overperforming other credit service stocks by 14 percentage points.

Onemain Holdings has an average 1 year price target of $50.38, an upside of 28.38% from Onemain Holdings's current stock price of $39.24.

Onemain Holdings stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Onemain Holdings, 50% have issued a Strong Buy rating, 37.5% have issued a Buy, 12.5% 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 13.34%, which is 9 percentage points higher than the credit service industry average of 4.73%. 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 214.2% indicates that its high dividend yield might not be sustainable for the long-term.

Barings Bdc (NYSE:BBDC) has an annual dividend yield of 11.42%, which is 7 percentage points higher than the credit service industry average of 4.73%. 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 119.5% indicates that its high dividend yield might not be sustainable for the long-term.

Onemain Holdings (NYSE:OMF) has an annual dividend yield of 10.07%, which is 5 percentage points higher than the credit service industry average of 4.73%. 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 73% indicates that its high dividend yield is sustainable for the long-term.

Credit service stocks were down -0.54% in the last day, and down -1.46% over the last week.

We couldn't find a catalyst for why credit service stocks are down.

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 gained 10.81% in the past year. It has underperformed other stocks in the credit service industry by -2 percentage points.

Medallion Financial (NASDAQ:MFIN) is the second 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 -4.63% in the past year. It has underperformed other stocks in the credit service industry by -17 percentage points.

Qifu Technology (NASDAQ:QFIN) is the third most undervalued credit service stock based on WallStreetZen's Valuation Score. Qifu Technology 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.

Qifu Technology's stock has gained 17.26% in the past year. It has overperformed other stocks in the credit service industry by 5 percentage points.