3 Credit Service Stocks that Could Serve Your Portfolio

The credit services industry is often overlooked by investors.

Why? Because it encapsulates a pretty large range of companies and services — and understanding how they work can be abstract. In short, the credit services industry can be difficult to understand. For that reason, many investors tend to avoid it. 

However, it’s worth taking the time to understand the industry at least a little — because there are potentially excellent investment opportunities among credit service companies for buy and hold investors. 

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And credit companies aren’t the only ones who do ratings. 

We have our own Zen Ratings system, which evaluates companies by 115 carefully considered factors. And companies with a Zen Rating of A have an average annual return of +32.52%

Here are three credit services companies that have a Zen Rating of A:

1. Oppfi (NYSE: OPFI)

OPFI provides loans to those who might otherwise have difficulty obtaining them, works with local banks, and sometimes offers financing to small businesses. In doing so, OPFI finds opportunities that other banks and lenders might ignore. And looking at the Component Grades, OPFI may be a strong growth opportunity at the moment, all the while appearing less risky than its industry competitors.

Investors will want to watch demand for loans to people with poor credit, whether OPFI can maintain a technological advantage in mitigating credit risk, and whether it can sustain its recent growth.

2. Ezcorp (NASDAQ: EZPW)

Providing pawn loans and operating pawn stores across the United States and Latin America, EZPW isn’t exactly the first thing you think of as a credit service company, but nonetheless, it’s a part of this ecosystem that you shouldn’t ignore. It has a Component Grade of B for Growth, Financials, and Artificial Intelligence (our algorithms detect patterns that indicate superior future stock price performance). This means that investors seeking growth from a company with a solid foundation should monitor EZPW.

In times of economic uncertainty, EZPW may be positioned to perform well. Their Q4 revenues and earnings surpassed estimates, and EZPW is developing an online instant quote tool that could boost its business. 

3. Oportun Financial (NASDAQ: OPRT)

A financial services operator operating in 24 states and online, OPRT is in an interesting position as the year closes out. In a stellar year with a +32.91% price increase, OPRT has had a slightly rougher last 3 months.

However, this could pose an excellent opportunity for some investors. It has a Component Grade of A for Value, some analysts consider it undervalued, and it still reported Q3 earnings that surpassed estimates. You will need to make your own decision given the uncertain sentiments on the credit industry and consumer spending.

Yet what’s the best credit you could possibly have? The credit you give yourself later when you sign up for WallStreetZen Premium today. It has all you need to make smarter investment decisions, including an unlimited watchlist, all the fundamental information you might need, premium stock ideas pages, and more.

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