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OppFi Inc. (OPFI) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of OppFi Inc. (OPFI - Free Report) ? Shares have been on the move with the stock up 26.6% over the past month. The stock hit a new 52-week high of $9.48 in the previous session. OppFi Inc. has gained 21.3% since the start of the year compared to the 17.1% move for the Zacks Business Services sector and the 18.4% return for the Zacks Financial Transaction Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 7, 2024, OppFi reported EPS of $0.33 versus consensus estimate of $0.21.
For the current fiscal year, OppFi is expected to post earnings of $1 per share on $520 million in revenues.
Valuation Metrics
While OppFi has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
OppFi has a Value Score of A. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 9.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14X. On a trailing cash flow basis, the stock currently trades at 17.6X versus its peer group's average of 9.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, OppFi currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if OppFi fits the bill. Thus, it seems as though OppFi shares could have a bit more room to run in the near term.
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OppFi Inc. (OPFI) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of OppFi Inc. (OPFI - Free Report) ? Shares have been on the move with the stock up 26.6% over the past month. The stock hit a new 52-week high of $9.48 in the previous session. OppFi Inc. has gained 21.3% since the start of the year compared to the 17.1% move for the Zacks Business Services sector and the 18.4% return for the Zacks Financial Transaction Services industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 7, 2024, OppFi reported EPS of $0.33 versus consensus estimate of $0.21.
For the current fiscal year, OppFi is expected to post earnings of $1 per share on $520 million in revenues.
Valuation Metrics
While OppFi has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
OppFi has a Value Score of A. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 9.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 14X. On a trailing cash flow basis, the stock currently trades at 17.6X versus its peer group's average of 9.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, OppFi currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if OppFi fits the bill. Thus, it seems as though OppFi shares could have a bit more room to run in the near term.