Dj Dir Moore Sells 23149 Of Oppfi Inc >Opfi

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is CoreCard Corporation (CCRD) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.

CoreCard Corporation is one of 308 companies in the Business Services group. The Business Services group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. CoreCard Corporation is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for CCRD's full-year earnings has moved 4.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that CCRD has returned about 28.3% since the start of the calendar year. Meanwhile, the Business Services sector has returned an average of 27% on a year-to-date basis. This means that CoreCard Corporation is performing better than its sector in terms of year-to-date returns.

OppFi Inc. (OPFI) is another Business Services stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 33.4%.

For OppFi Inc. the consensus EPS estimate for the current year has increased 16.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, CoreCard Corporation belongs to the Technology Services industry, a group that includes 165 individual stocks and currently sits at #65 in the Zacks Industry Rank. Stocks in this group have gained about 53.8% so far this year, so CCRD is slightly underperforming its industry this group in terms of year-to-date returns.

OppFi Inc. however, belongs to the Financial Transaction Services industry. Currently, this 43-stock industry is ranked #136. The industry has moved +23.7% so far this year.

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

Zacks Investment Research

Have you been paying attention to shares of OppFi Inc. (OPFI)? Shares have been on the move with the stock up 38.3% over the past month. The stock hit a new 52-week high of $6.87 in the previous session. OppFi Inc. has gained 27% since the start of the year compared to the 27.5% move for the Zacks Business Services sector and the 21.7% return for the Zacks Financial Transaction Services industry.

What's Driving the Outperformance?

The stock has an impressive 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 $0.86 per share on $515.01 million in revenues. This represents a 68.63% change in EPS on a 1.19% change in revenues. For the next fiscal year, the company is expected to earn $0.86 per share on $540.27 million in revenues. This represents a year-over-year change of 0% and 4.9%, respectively.

Valuation Metrics

OppFi may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

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. The idea behind the style scores is to help investors 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 A and B, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 7.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 17.5X. On a trailing cash flow basis, the stock currently trades at 12.3X versus its peer group's average of 11.2X. 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 #2 (Buy) thanks to rising earnings estimates.

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.

Zacks Investment Research

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.

The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.

Our "Recent Price Strength" screen, which is created on a unique short-term trading strategy, could be pretty useful in this regard. This predefined screen makes it really easy to shortlist the stocks that have enough fundamental strength to maintain their recent uptrend. Also, the screen passes only the stocks that are trading in the upper portion of their 52-week high-low range, which is usually an indicator of bullishness.

OppFi Inc.

(OPFI) is one of the several suitable candidates that passed through the screen. Here are the key reasons why it could be a profitable bet for "trend" investors.

A solid price increase over a period of 12 weeks reflects investors' continued willingness to pay more for the potential upside in a stock. OPFI is quite a good fit in this regard, gaining 45.4% over this period.

However, it's not enough to look at the price change for around three months, as it doesn't reflect any trend reversal that might have happened in a shorter time frame. It's important for a potential winner to maintain the price trend. A price increase of 38.3% over the past four weeks ensures that the trend is still in place for the stock of this company.

Moreover, OPFI is currently trading at 91.9% of its 52-week High-Low Range, hinting that it can be on the verge of a breakout.

Looking at the fundamentals, the stock currently carries a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises -- the key factors that impact a stock's near-term price movements.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here

Another factor that confirms the company's fundamental strength is its Average Broker Recommendation of #1 (Strong Buy). This indicates that the brokerage community is highly optimistic about the stock's near-term price performance.

So, the price trend in OPFI may not reverse anytime soon.

In addition to OPFI, there are several other stocks that currently pass through our "Recent Price Strength" screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.

This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.

However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.

Click here to sign up for a free trial to the Research Wizard today.

Zacks Investment Research