Are Business Services Stocks Lagging OppFi (OPFI) This Year?

Zacks
2024-12-17

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. OppFi Inc. (OPFI) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.

OppFi Inc. is one of 305 individual stocks in the Business Services sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. OppFi Inc. is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for OPFI's full-year earnings has moved 16.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, OPFI has moved about 48.1% on a year-to-date basis. At the same time, Business Services stocks have gained an average of 24.8%. This means that OppFi Inc. is performing better than its sector in terms of year-to-date returns.

Payoneer Global Inc. (PAYO) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 100.6%.

Over the past three months, Payoneer Global Inc.'s consensus EPS estimate for the current year has increased 41.4%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, OppFi Inc. belongs to the Financial Transaction Services industry, a group that includes 42 individual companies and currently sits at #77 in the Zacks Industry Rank. On average, this group has gained an average of 24.5% so far this year, meaning that OPFI is performing better in terms of year-to-date returns.

On the other hand, Payoneer Global Inc. belongs to the Technology Services industry. This 162-stock industry is currently ranked #73. The industry has moved +59.9% year to date.

OppFi Inc. and Payoneer Global Inc. could continue their solid performance, so investors interested in Business Services stocks should continue to pay close attention to these stocks.

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