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Lower Rates, Higher Gain: 3 Consumer Loan Stocks to Consider for 2026
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Key Takeaways
Lower interest rates are supporting net interest income expansion for the consumer loan industry.
Enova is diversifying products and acquiring Grasshopper Bancorp to boost scale and earnings.
Ally Financial and OneMain Holdings expect earnings growth from restructuring and rising loan demand.
Falling interest rates and easing lending standards are brightening the outlook for the Zacks Consumer Loans industry. The Federal Reserve implemented its third consecutive interest rate cut in December, placing rates in a range of 3.5-3.75%.
Lower rates will support net interest income (NII) expansion, a critical earnings driver for banks. While lower benchmark rates can compress yields on loans and securities, the easing of funding pressures helps preserve margins. Declining rates reduce the burden of carrying debt, often improving borrower solvency and easing payment stress. This dynamic tends to lower delinquency rates and reduce charge-offs. Lower rates are expected to encourage consumers and businesses to borrow. Such increased lending activity can result in larger profitability for banks as they earn more interest on these loans.
With these favorable factors, consumer loan providers such as Enova International (ENVA - Free Report) , Ally Financial (ALLY - Free Report) and OneMain Holding (OMF - Free Report) stand out as attractive options for investors seeking solid returns in 2026.
The consumer loan industry has widely outperformed the S&P 500 Index and the Finance sector in the past year. The stocks in this industry have collectively returned 54.5%, while the Zacks S&P 500 composite and Finance sector have grown 14.6% and 14.9%, respectively.
Price Performance
Image Source: Zacks Investment Research
Although the Fed has already reduced rates three times this year, policymakers have signaled caution regarding the future pace of easing. For 2026, the central bank currently anticipates one additional rate cut. Even so, improving consumer sentiment and rising loan demand, driven by lower rates, should continue to support consumer lenders.
3 Consumer Loan Stocks to Consider
To choose the aforementioned consumer loan providers, we ran the Zacks Stocks Screener to identify stocks with an expected 2026 earnings growth rate of more than 10% and a one-year price performance above 20%. Also, these three stocks currently carry a Zacks Rank #2 (Buy) or 3 (Hold).
Price Performance
Image Source: Zacks Investment Research
Enova: Based in Chicago, IL, this leading financial technology company focuses on providing online financial services. The company currently provides services in the United States, the U.K., Canada, Australia and Brazil. ENVA caters to small businesses and capitalizes on its proprietary technology, analytics and customer service capabilities to underwrite and fund loans.
For more than two decades, Enova has delivered more than $65 billion in loans and financing to above 13 million customers, leveraging advanced analytics, machine learning and proprietary technology to power a portfolio of market-leading financial products.
Enova has been diversifying its operations. Some of the company’s financing products and services are installment loans, line of credit accounts and receivables purchase agreements. Also, the company has undertaken acquisitions to bolster market share. In December 2025, ENVA entered a definitive agreement to acquire Grasshopper Bancorp, Inc., a full-service digital bank, for approximately $369 million in a mix of cash and stock. Scheduled to close in the second half of 2026, the deal is projected to be more than 15% accretive to adjusted earnings in the first year following closing, with accretion rising to 25% or more as synergies are fully realized in subsequent years.
The Zacks Consensus Estimate for the company’s earnings for 2026 is pegged at $14.12, indicating a rise of 10.6% from the year-ago reported figure.
Ally Financial: Founded in 1919, this Detroit, MI-based company is a diversified financial services firm providing several financial products and services to automotive dealers and their customers.
Ally Financial has been restructuring its operations to create a simplified and streamlined organizational structure. As such, the company announced some business actions in January 2025. These include the divestiture of its credit card business (Ally Credit Card), ceasing new mortgage loan originations, and reducing the workforce. In 2024, the company divested its point-of-sale financing business, Ally Lending. The company plans to invest resources in growing core businesses and strengthening relationships with dealer customers. These efforts are expected to drive the company’s other revenues.
ALLY Financial is expected to witness a rise in net financing revenues, driven by strong origination volumes, balance sheet repositioning action (undertaken in March 2025), and retail loan growth.
The Zacks Consensus Estimate for the company’s earnings for 2026 is pegged at $5.32, indicating a rise of 42.1% from the year-ago reported figure. It currently carries a Zacks Rank #3.
Earnings Estimates
Image Source: Zacks Investment Research
OneMain Holdings: Operating through 1,300 locations across 47 states, OneMain typically provides unsecured and secured personal installment loans, often used for debt consolidation, home improvements, medical expenses and other large personal needs. It also offers optional credit and non-credit insurance products, such as life, disability and involuntary unemployment insurance.
Revenue growth has been a major strength for OneMain Holdings. Its loan mix of Front Book and Back Book aims for revenue sustainability while maintaining upside potential in a rapidly changing macroeconomic environment. OMF frequently securitizes portions of its loan book via OneMain Financial Issuance Trust to reduce funding costs and manage balance sheet exposure. Its 2024 acquisition of Foursight Capital LLC expanded its presence into the auto lending business.
As a subprime lender, OMF is more exposed to credit risks and macroeconomic cycles. However, the company employs rigorous underwriting and servicing, supported by centralized data analytics, and has a strong record of managing credit performance, even during downturns.
The Zacks Consensus Estimate for the company’s earnings for 2026 is pegged at $8.02, indicating a rise of 19.9% from the year-ago reported figure. It currently carries a Zacks Rank #3.
Earnings Estimates
Image Source: Zacks Investment Research
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Lower Rates, Higher Gain: 3 Consumer Loan Stocks to Consider for 2026
Key Takeaways
Falling interest rates and easing lending standards are brightening the outlook for the Zacks Consumer Loans industry. The Federal Reserve implemented its third consecutive interest rate cut in December, placing rates in a range of 3.5-3.75%.
Lower rates will support net interest income (NII) expansion, a critical earnings driver for banks. While lower benchmark rates can compress yields on loans and securities, the easing of funding pressures helps preserve margins. Declining rates reduce the burden of carrying debt, often improving borrower solvency and easing payment stress. This dynamic tends to lower delinquency rates and reduce charge-offs. Lower rates are expected to encourage consumers and businesses to borrow. Such increased lending activity can result in larger profitability for banks as they earn more interest on these loans.
With these favorable factors, consumer loan providers such as Enova International (ENVA - Free Report) , Ally Financial (ALLY - Free Report) and OneMain Holding (OMF - Free Report) stand out as attractive options for investors seeking solid returns in 2026.
The consumer loan industry has widely outperformed the S&P 500 Index and the Finance sector in the past year. The stocks in this industry have collectively returned 54.5%, while the Zacks S&P 500 composite and Finance sector have grown 14.6% and 14.9%, respectively.
Price Performance
Image Source: Zacks Investment Research
Although the Fed has already reduced rates three times this year, policymakers have signaled caution regarding the future pace of easing. For 2026, the central bank currently anticipates one additional rate cut. Even so, improving consumer sentiment and rising loan demand, driven by lower rates, should continue to support consumer lenders.
3 Consumer Loan Stocks to Consider
To choose the aforementioned consumer loan providers, we ran the Zacks Stocks Screener to identify stocks with an expected 2026 earnings growth rate of more than 10% and a one-year price performance above 20%. Also, these three stocks currently carry a Zacks Rank #2 (Buy) or 3 (Hold).
Price Performance
Enova: Based in Chicago, IL, this leading financial technology company focuses on providing online financial services. The company currently provides services in the United States, the U.K., Canada, Australia and Brazil. ENVA caters to small businesses and capitalizes on its proprietary technology, analytics and customer service capabilities to underwrite and fund loans.
For more than two decades, Enova has delivered more than $65 billion in loans and financing to above 13 million customers, leveraging advanced analytics, machine learning and proprietary technology to power a portfolio of market-leading financial products.
Enova has been diversifying its operations. Some of the company’s financing products and services are installment loans, line of credit accounts and receivables purchase agreements. Also, the company has undertaken acquisitions to bolster market share. In December 2025, ENVA entered a definitive agreement to acquire Grasshopper Bancorp, Inc., a full-service digital bank, for approximately $369 million in a mix of cash and stock. Scheduled to close in the second half of 2026, the deal is projected to be more than 15% accretive to adjusted earnings in the first year following closing, with accretion rising to 25% or more as synergies are fully realized in subsequent years.
The Zacks Consensus Estimate for the company’s earnings for 2026 is pegged at $14.12, indicating a rise of 10.6% from the year-ago reported figure.
Earnings Estimates
Image Source: Zacks Investment Research
It currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ally Financial: Founded in 1919, this Detroit, MI-based company is a diversified financial services firm providing several financial products and services to automotive dealers and their customers.
Ally Financial has been restructuring its operations to create a simplified and streamlined organizational structure. As such, the company announced some business actions in January 2025. These include the divestiture of its credit card business (Ally Credit Card), ceasing new mortgage loan originations, and reducing the workforce.
In 2024, the company divested its point-of-sale financing business, Ally Lending. The company plans to invest resources in growing core businesses and strengthening relationships with dealer customers. These efforts are expected to drive the company’s other revenues.
ALLY Financial is expected to witness a rise in net financing revenues, driven by strong origination volumes, balance sheet repositioning action (undertaken in March 2025), and retail loan growth.
The Zacks Consensus Estimate for the company’s earnings for 2026 is pegged at $5.32, indicating a rise of 42.1% from the year-ago reported figure. It currently carries a Zacks Rank #3.
Earnings Estimates
Image Source: Zacks Investment Research
OneMain Holdings: Operating through 1,300 locations across 47 states, OneMain typically provides unsecured and secured personal installment loans, often used for debt consolidation, home improvements, medical expenses and other large personal needs. It also offers optional credit and non-credit insurance products, such as life, disability and involuntary unemployment insurance.
Revenue growth has been a major strength for OneMain Holdings. Its loan mix of Front Book and Back Book aims for revenue sustainability while maintaining upside potential in a rapidly changing macroeconomic environment. OMF frequently securitizes portions of its loan book via OneMain Financial Issuance Trust to reduce funding costs and manage balance sheet exposure. Its 2024 acquisition of Foursight Capital LLC expanded its presence into the auto lending business.
As a subprime lender, OMF is more exposed to credit risks and macroeconomic cycles. However, the company employs rigorous underwriting and servicing, supported by centralized data analytics, and has a strong record of managing credit performance, even during downturns.
The Zacks Consensus Estimate for the company’s earnings for 2026 is pegged at $8.02, indicating a rise of 19.9% from the year-ago reported figure. It currently carries a Zacks Rank #3.
Earnings Estimates
Image Source: Zacks Investment Research