Core Insights - Fiduciary Management Inc. (FMI) reported a strong performance in the third quarter of 2025, with major stock indices such as the Russell 2000, S&P 500, MSCI EAFE, and MSCI World gaining 12.39%, 8.12%, 5.38%/4.77%, and 7.27% respectively, driven by a Federal Reserve rate cut and enthusiasm for AI and technology stocks [1] - FMI's investment strategy focuses on idiosyncratic dislocations, emphasizing business quality, balance sheet strength, and valuation while maintaining downside protection [1] Company Analysis: OneMain Holdings, Inc. (NYSE:OMF) - OneMain Holdings, Inc. is recognized as a scale leader in nonprime personal lending, with a one-month return of -5.99% and a 52-week gain of 22.70%, closing at $56.53 per share with a market capitalization of $6.72 billion as of October 21, 2025 [2][3] - FMI believes that OneMain Holdings has the potential to be reframed as a high-quality financial institution, supported by organic growth opportunities in personal lending and new areas like credit cards and direct auto lending, projecting mid-single-digit growth with significant capital returns through dividends and buybacks [3] - Despite current macroeconomic pressures affecting OneMain's core consumers and net charge-offs, FMI asserts that the company's income statement and balance sheet provide sufficient protection against adverse outcomes [3] Hedge Fund Interest - OneMain Holdings, Inc. was held by 39 hedge fund portfolios at the end of the second quarter, a slight decrease from 40 in the previous quarter [4] - The company's second-quarter earnings were reported at $1.40 per diluted share, marking a 137% increase from $0.59 per diluted share in the same quarter of 2024 [4] - While FMI acknowledges OneMain's investment potential, it suggests that certain AI stocks may offer greater upside potential with less downside risk [4]

Core Points - OneMain Holdings, Inc. plans to report its third quarter 2025 results on October 31, 2025, before market opens [1] - A conference call to discuss the results and outlook will take place at 9:00 a.m. Eastern on the same day, with public access via phone or webcast [2] - OneMain Financial is a leader in providing responsible credit access to nonprime consumers, operating in 47 states with 1,300 locations [3]

Core Viewpoint - Investors in the Financial - Consumer Loans sector should consider OneMain Holdings (OMF) and Sallie Mae (SLM) for potential value opportunities [1] Group 1: Zacks Rank and Earnings Outlook - OneMain Holdings has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Sallie Mae has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, suggesting that OMF has an improving earnings outlook [3] Group 2: Valuation Metrics - OMF has a forward P/E ratio of 8.81, while SLM has a forward P/E of 8.84, indicating that both stocks are similarly valued in terms of earnings [5] - OMF's PEG ratio is 0.43, compared to SLM's PEG ratio of 0.77, suggesting OMF may offer better value considering expected earnings growth [5] - OMF's P/B ratio is 2.01, while SLM's P/B ratio is 2.69, further indicating that OMF is relatively undervalued compared to SLM [6] Group 3: Value Grades - OMF has a Value grade of A, while SLM has a Value grade of C, highlighting OMF's stronger position in terms of value metrics [6] - The combination of Zacks Rank and Style Scores suggests that OMF is the preferred choice for value investors over SLM [6]

Core Viewpoint - OneMain Holdings (OMF) has experienced significant selling pressure, resulting in a 10% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted, indicating a potential turnaround for the company [1]. Technical Analysis - The Relative Strength Index (RSI) for OMF is currently at 29.3, suggesting that the stock is in oversold territory and may be poised for a rebound as selling pressure exhausts [5]. - RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with readings below 30 typically indicating oversold conditions [2][3]. Fundamental Indicators - There has been a strong consensus among sell-side analysts to raise earnings estimates for OMF, leading to a 0% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - OMF holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8].

Core Insights - The article emphasizes the importance of value investing, which focuses on identifying undervalued companies in the market [2] - It highlights the use of Zacks Rank and Style Scores system to find strong value stocks, particularly those with high Value grades and Zacks Ranks [3] Company Analysis: OneMain (OMF) - OneMain (OMF) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4] - OMF's current P/E ratio is 8.03, significantly lower than the industry average P/E of 10.48, suggesting it may be undervalued [4] - The Forward P/E for OMF has fluctuated between 6.02 and 10.64 over the past year, with a median of 7.65 [4] - OMF has a PEG ratio of 0.40, which is lower than the industry average PEG of 0.52, indicating favorable valuation relative to expected earnings growth [5] - The P/S ratio for OMF is 1.33, compared to the industry's average P/S of 1.62, further supporting the notion of undervaluation [6] - Overall, the metrics suggest that OneMain is likely undervalued, making it an attractive option for value investors [7]

Group 1 - OneMain Holdings is highlighted as a potential investment opportunity due to its focus on small personal loans for higher-risk borrowers, which often struggle to obtain traditional credit [1] - The company operates 1,300 physical locations across 47 states and also offers loans through its iLoan platform, indicating a strong physical and digital presence [1] - OneMain Holdings has shown impressive financial performance, providing an 8% yield to investors, supported by solid fundamentals [4] Group 2 - OneMain Holdings has received an upgrade to its IBD Relative Strength Rating, reflecting improving price performance [2][4] - The company's Relative Strength Rating has jumped to 83, indicating strong relative price performance compared to its peers [4] - Despite the positive trends, OneMain Holdings is still shy of key benchmarks, suggesting there may be room for further growth [4]

Core Viewpoint - OneMain Holdings (OMF) is currently viewed as a more attractive investment option compared to Sallie Mae (SLM) for value investors based on various financial metrics and rankings [1][3][7] Valuation Metrics - OMF has a forward P/E ratio of 9.60, while SLM has a slightly higher forward P/E of 9.61 [5] - The PEG ratio for OMF is 0.47, indicating better expected EPS growth relative to its price compared to SLM's PEG ratio of 0.84 [5] - OMF's P/B ratio stands at 2.19, which is lower than SLM's P/B ratio of 2.93, suggesting OMF is more favorably valued in terms of market value versus book value [6] Earnings Outlook - OMF holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook with recent revisions to earnings estimates, while SLM has a Zacks Rank of 3 (Hold) [3][7] - The stronger estimate revision activity for OMF further supports its position as a superior choice for value investors [7] Value Grades - OMF has received a Value grade of A, while SLM has a Value grade of C, reflecting OMF's more attractive valuation metrics [6]

Core Viewpoint - The article emphasizes the importance of value investing and highlights OneMain (OMF) as a strong candidate for value investors due to its favorable financial metrics and Zacks Rank [2][4][7] Company Analysis - OneMain (OMF) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4] - The stock has a P/E ratio of 8.12, significantly lower than the industry average of 10.49, suggesting it may be undervalued [4] - OMF's Forward P/E has fluctuated between 6.02 and 10.64 over the past 12 months, with a median of 7.62, further indicating its valuation potential [4] - The company has a PEG ratio of 0.40, which is lower than the industry average of 0.52, suggesting that OMF is undervalued relative to its expected earnings growth [5] - OMF's PEG has ranged from 0.31 to 0.71 in the past year, with a median of 0.43, reinforcing its attractiveness as a value stock [5] - The P/S ratio for OMF is 1.38, compared to the industry average of 1.64, indicating a favorable valuation based on sales [6] - Overall, the combination of these metrics suggests that OMF is likely undervalued and has a strong earnings outlook, making it an impressive value stock at present [7]

Economic Environment and Consumer Health - The company focuses on nonprime consumers and characterizes its borrower base as healthy, with an average income of approximately $70,000 per year [1] - The consumer demographic targeted includes individuals earning between $40,000 and $150,000, indicating a stable employment environment [1] - Employment rates are strong, with a reported unemployment rate of 4.2%, suggesting that most individuals seeking jobs are able to find employment [2] Lending Criteria and Variables - The company utilizes over 1,000 variables to assess borrowers, including income, expenses, geography, and employment type, ensuring a comprehensive evaluation of potential borrowers [1] - The current consumer base is described as being in good financial shape, which supports the company's lending strategy [1]

Economic Environment and Consumer Health - The company focuses on nonprime consumers and characterizes its borrower base as healthy, with an average income of approximately $70,000 per year [1] - The consumer demographic targeted includes individuals earning between $40,000 and $150,000, indicating a stable employment environment [1] - Employment rates are strong, with a reported unemployment rate of 4.2%, suggesting that most individuals seeking jobs are able to find employment [2] Lending Criteria and Variables - The company utilizes over 1,000 variables to assess borrowers, including income, expenses, geography, and employment type, ensuring a comprehensive evaluation of potential borrowers [1] - The current consumer base is described as being in good financial shape, which supports the company's lending strategy [1]