OppFi Inc. (OPFI) shares soared 11.1% in the last trading session to close at $13.88. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 65.2% gain over the past four weeks.
The upside can be attributed to OppFi’s digitally native platform, powered by a scalable and modern technology stack. This platform integrates proprietary risk models and iterative data analytics, providing significant scalability, cost efficiency and customer experience advantages over traditional credit providers. A key strength lies in its proprietary technology, which incorporates sophisticated analytics tools, machine learning models and cloud-based computing.
OppFi’s bank partner model is another competitive advantage. By collaborating with bank partners that originate loans using their own capital, the company benefits from a nationwide reach while maintaining compliance with regulatory requirements. Finally, the company employs an integrated, multi-channel marketing approach that enhances customer acquisition. By fostering strategic partnerships and creating a multi-sided ecosystem, the company delivers value to consumers, bank partners, and other stakeholders, cementing its leadership position in the market.
This company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +40%. Revenues are expected to be $129.76 million, down 2.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For OppFi, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on OPFI going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
OppFi is part of the Zacks Financial Transaction Services industry. Global Blue Group Holding AG (GB), another stock in the same industry, closed the last trading session 0.7% higher at $7.26. GB has returned 6.8% in the past month.
For Global Blue Group , the consensus EPS estimate for the upcoming report has changed -20% over the past month to $0.09. This represents a change of +125% from what the company reported a year ago. Global Blue Group currently has a Zacks Rank of #4 (Sell).
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