OppFi Inc. shares have surged to a new high, raising questions about whether it’s time for investors to take profits
Chicago: Have you seen what’s happening with OppFi Inc. (OPFI)? Their stock has really taken off, jumping 26.6% in just a month. It even hit a new 52-week high at $9.48 recently. Since the start of the year, it’s up 21.3%, which is pretty impressive compared to the Zacks Business Services sector and the Financial Transaction Services industry.
So, what’s fueling this rise? Well, OppFi has been consistently beating earnings expectations. In their last report on November 7, 2024, they posted earnings of $0.33, way above the $0.21 that analysts were expecting. For this fiscal year, they’re projected to earn $1 per share on revenues of $520 million.
Now, with the stock hitting this high, investors are probably wondering what’s next. It’s important to look at valuation metrics to see if a pullback is on the horizon. The Zacks Style Scores can help with this. They give grades from A to F in Value, Growth, and Momentum categories, plus a combined VGM Score. OppFi has an A for Value and B for both Growth and Momentum, giving it a solid VGM Score of A.
When it comes to value, the stock trades at 9.3 times the current fiscal year EPS estimates, which is lower than the industry average of 14 times. On a trailing cash flow basis, it’s at 17.6 times compared to the peer group’s average of 9.9 times. So, it’s not exactly at the top of the value rankings.
Another thing to consider is the Zacks Rank, which is crucial. OppFi currently holds a Zacks Rank of #1 (Strong Buy) due to positive earnings estimate revisions from analysts. This is a good sign for investors looking for stocks to buy.
In short, if you’re looking at OppFi, it seems like there might still be some room for growth in the near future. It’s definitely worth keeping an eye on.
