Sectors & IndustriesFinancial ServicesCredit Services

Best Credit Service Stocks to Buy Now (2024)

Top credit service stocks in 2024 ranked by overall Zen Score. See the best credit service stocks to buy now, according to analyst forecasts for the credit services industry.

According to Zen Score, the 3 best credit service stocks to buy right now are:

Qifu Technology (NASDAQ:QFIN) is the top credit service stock with a Zen Score of 59, which is 28 points higher than the credit service industry average of 31. It passed 22 out of 38 due diligence checks and has strong fundamentals. Qifu Technology has seen its stock return 14.67% over the past year, underperforming other credit service stocks by -13 percentage points.

Qifu Technology has an average 1 year price target of $23.80, an upside of 14.92% from Qifu Technology's current stock price of $20.71.

Qifu Technology stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Qifu Technology, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Open Lending (NASDAQ:LPRO) is the second best credit service stock with a Zen Score of 56, which is 25 points higher than the credit service industry average of 31. It passed 18 out of 33 due diligence checks and has strong fundamentals. Open Lending has seen its stock lose -34.79% over the past year, underperforming other credit service stocks by -63 percentage points.

Open Lending has an average 1 year price target of $7.20, an upside of 14.65% from Open Lending's current stock price of $6.28.

Open Lending stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Open Lending, 0% have issued a Strong Buy rating, 60% have issued a Buy, 40% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Mastercard (NYSE:MA) is the third best credit service stock with a Zen Score of 51, which is 20 points higher than the credit service industry average of 31. It passed 20 out of 38 due diligence checks and has strong fundamentals. Mastercard has seen its stock return 18.46% over the past year, underperforming other credit service stocks by -9 percentage points.

Mastercard has an average 1 year price target of $515.72, an upside of 13.55% from Mastercard's current stock price of $454.20.

Mastercard stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 18 analysts covering Mastercard, 66.67% have issued a Strong Buy rating, 33.33% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 24 credit service stocks that have issued dividends in the past year, the 3 credit service stocks with the highest dividend yields are:

Oaktree Specialty Lending (NASDAQ:OCSL) has an annual dividend yield of 11.66%, which is 8 percentage points higher than the credit service industry average of 4.05%. Oaktree Specialty Lending's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Oaktree Specialty Lending's dividend has shown consistent growth over the last 10 years.

Oaktree Specialty Lending's dividend payout ratio of 166.9% indicates that its high dividend yield might not be sustainable for the long-term.

Goldman Sachs Bdc (NYSE:GSBD) has an annual dividend yield of 11.48%, which is 7 percentage points higher than the credit service industry average of 4.05%. Goldman Sachs Bdc's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Goldman Sachs Bdc's dividend has not shown consistent growth over the last 10 years.

Goldman Sachs Bdc's dividend payout ratio of 93.8% indicates that its high dividend yield might not be sustainable for the long-term.

Barings Bdc (NYSE:BBDC) has an annual dividend yield of 10.48%, which is 6 percentage points higher than the credit service industry average of 4.05%. Barings Bdc's dividend payout is not stable, having dropped more than 10% four times in the last 10 years. Barings Bdc's dividend has shown consistent growth over the last 10 years.

Barings Bdc's dividend payout ratio of 83.1% indicates that its high dividend yield is sustainable for the long-term.

Credit service stocks were up 0.48% in the last day, and up 1.24% over the last week.

We couldn't find a catalyst for why credit service stocks are up.

Based on WallStreetZen's Valuation Score, the 3 most undervalued credit service stocks right now are:

Security National Financial (NASDAQ:SNFCA) is the most undervalued credit service stock based on WallStreetZen's Valuation Score. Security National Financial has a valuation score of 86, which is 46 points higher than the credit service industry average of 40. It passed 6 out of 7 valuation due diligence checks.

Security National Financial's stock has gained 0.23% in the past year. It has underperformed other stocks in the credit service industry by -28 percentage points.

Capital One Financial (NYSE:COF) is the second most undervalued credit service stock based on WallStreetZen's Valuation Score. Capital One Financial has a valuation score of 71, which is 31 points higher than the credit service industry average of 40. It passed 5 out of 7 valuation due diligence checks.

Capital One Financial's stock has gained 60.55% in the past year. It has overperformed other stocks in the credit service industry by 33 percentage points.

Atlanticus Holdings (NASDAQ:ATLC) is the third most undervalued credit service stock based on WallStreetZen's Valuation Score. Atlanticus Holdings has a valuation score of 71, which is 31 points higher than the credit service industry average of 40. It passed 5 out of 7 valuation due diligence checks.

Atlanticus Holdings's stock has dropped -7.36% in the past year. It has underperformed other stocks in the credit service industry by -35 percentage points.