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 63, which is 32 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 -25.68% over the past year, underperforming other credit service stocks by -45 percentage points.

Open Lending has an average 1 year price target of $7.33, an upside of 49.04% from Open Lending's current stock price of $4.92.

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 16.19% 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 26.13% from Qifu Technology's current stock price of $18.87.

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.

PayPal (NASDAQ:PYPL) 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 18 out of 33 due diligence checks and has strong fundamentals. PayPal has seen its stock lose -10.7% over the past year, underperforming other credit service stocks by -30 percentage points.

PayPal has an average 1 year price target of $67.76, an upside of 5.71% from PayPal's current stock price of $64.10.

PayPal stock has a consensus Buy recommendation according to Wall Street analysts. Of the 21 analysts covering PayPal, 23.81% have issued a Strong Buy rating, 14.29% have issued a Buy, 61.9% 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 11.54%, which is 8 percentage points higher than the credit service industry average of 4%. 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 148.4% indicates that its high dividend yield might not be sustainable for the long-term.

Barings Bdc (NYSE:BBDC) has an annual dividend yield of 11.15%, which is 7 percentage points higher than the credit service industry average of 4%. 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 10.77%, which is 7 percentage points higher than the credit service industry average of 4%.

Lexinfintech Holdings's dividend payout ratio of 12.9% indicates that its high dividend yield is sustainable for the long-term.

Credit service stocks were down -1.3% in the last day, and up 1.4% over the last week. Firstcash Holdings was the among the top losers in the credit services industry, dropping -13.19% yesterday.

FirstCash shares are trading lower following a Q1 revenue miss.

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 100, which is 58 points higher than the credit service industry average of 42. It passed 7 out of 7 valuation due diligence checks.

Open Lending's stock has dropped -25.68% in the past year. It has underperformed other stocks in the credit service industry by -45 percentage points.

Navient (NASDAQ:NAVI) is the second most undervalued credit service stock based on WallStreetZen's Valuation Score. Navient has a valuation score of 100, which is 58 points higher than the credit service industry average of 42. It passed 7 out of 7 valuation due diligence checks.

Navient's stock has dropped -1.44% in the past year. It has underperformed other stocks in the credit service industry by -21 percentage points.

Capital One Financial (NYSE:COF) is the third most undervalued credit service stock based on WallStreetZen's Valuation Score. Capital One Financial has a valuation score of 71, which is 29 points higher than the credit service industry average of 42. It passed 5 out of 7 valuation due diligence checks.

Capital One Financial's stock has gained 53.73% in the past year. It has overperformed other stocks in the credit service industry by 34 percentage points.