Group 1 - FirstCash Holdings (FCFS) is currently outperforming its peers in the Business Services sector, with a year-to-date return of 28.1% compared to the sector average of -2.6% [4] - FCFS holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, with the consensus estimate for full-year earnings having increased by 0.7% over the past three months [3] - The Financial Transaction Services industry, which includes FCFS, has an average year-to-date return of -0.7%, further highlighting FCFS's strong performance within its industry [6] Group 2 - OppFi Inc. (OPFI) is another stock in the Business Services sector that has shown strong performance, with a year-to-date return of 24% [4] - The consensus EPS estimate for OppFi Inc. has increased by 10.9% over the past three months, and it currently holds a Zacks Rank of 1 (Strong Buy) [5] - Both FirstCash Holdings and OppFi Inc. are recommended for investors interested in the Business Services sector due to their solid performance [7]

Core Viewpoint - Both OppFi Inc. (OPFI) and Futu Holdings Limited (FUTU) are fintech companies leveraging technology to transform traditional financial services, attracting growth-oriented investors seeking opportunities in the fintech sector [1][2] Company Overview - Futu Holdings provides fully digitalized financial services, focusing on online brokerage and wealth management primarily in the China market, while OppFi offers alternative lending solutions to underserved U.S. customers [2] - Both companies aim to disrupt traditional financial services through advanced technology [2] OppFi's Case - OppFi's strategy targets affordable credit for underbanked customers, with a projected market growth of 13% CAGR, reaching a $7 trillion market by 2032 [3] - The company utilizes AI and machine learning to enhance credit evaluation, improving the identification and approval of higher-quality applicants [4] - In Q4 2024, 79.5% of OppLoans were approved instantly without human intervention, marking a 630 basis point increase from Q4 2023, contributing to a 60 basis point reduction in expenses before interest year over year [5] Futu Holdings' Case - Futu challenges traditional brokerage with a fully digital platform and low fees, utilizing AI for operational efficiency, resulting in a 116% increase in operating income and a 690 basis point improvement in margin year over year in Q4 2024 [6] - The company launched various AI-driven features to enhance client experience, including automatic interpretation of corporate announcements [7] - Futu's product velocity was high in Q4 2024, with 209 iterations of its mobile and desktop applications and a 28.7% year-over-year increase in registered clients, leading to an 87% surge in top-line revenue [8][9] Financial Estimates - The Zacks Consensus Estimate for Futu's 2025 sales and EPS indicates year-over-year growth of 19.1% and 31.5%, respectively [11] - For OppFi, the estimates show 9.7% growth in sales and 12.6% in EPS for 2025 [12] Valuation Comparison - Futu Holdings trades at a forward earnings multiple of 12.57X, below its 12-month median of 14.22X, while OppFi's forward earnings multiple is 8.41X, higher than its median of 6.73X [13] Conclusion - Both OPFI and FUTU are notable fintech players, but OPFI is viewed as a more compelling investment opportunity due to its focus on advanced AI and ML in the underserved U.S. credit market, operational efficiency, and ability to disrupt traditional lending [15]

Industry Overview - Financial technology (fintech) is a transformative investment space merging finance and technology, offering services like online banking, peer-to-peer payments, insurance, cryptocurrency, and cybersecurity [1] - The fintech space is expected to benefit from expanding transaction volumes due to the widespread adoption of digital means, accelerated by the pandemic [2] - The innovative nature of fintech positions it for significant growth, driven by consumer behavior shifting towards digital platforms for convenience and cost-effectiveness [4] Catalysts for Growth - The performance of the fintech sector is inversely related to interest rates; a recent reduction in the Federal Reserve's benchmark interest rates is expected to benefit fintech companies [3] - The rise of artificial intelligence (AI) and machine learning is revolutionizing banking, payments, and investments, providing efficient and secure financial solutions [5] Recommended Stocks - Five fintech stocks are recommended for long-term investment: Affirm Holdings Inc. (AFRM), StoneCo Ltd. (STNE), ACI Worldwide Inc. (ACIW), Coinbase Global Inc. (COIN), and OppFi Inc. (OPFI) [2][6] Company-Specific Insights Affirm Holdings Inc. (AFRM) - Affirm has strong revenue growth from diverse income streams, expecting revenues of $3.13-$3.19 billion in fiscal 2025, driven by growing active merchant numbers and improving gross merchandise value [7] - Key partnerships, including those with Apple Pay and Hotels.com, are crucial for Affirm's expansion, including a recent entry into the UK market [8] - Affirm's expected revenue and earnings growth rates are 36.9% and 96.4%, respectively, with a 60% improvement in earnings estimates over the last 30 days [9] - The average short-term price target indicates a potential increase of 70.6% from the last closing price of $40.76, suggesting a maximum upside of 111% [10] StoneCo Ltd. (STNE) - StoneCo is a leading provider of point-of-sale payment processing services, enabling businesses to accept various payment methods [11] - The company offers a full suite of products for e-commerce transactions and client management, utilizing transaction data for credit assessment [12] - StoneCo's expected revenue and earnings growth rates are 4.1% and -6.7%, respectively, with a 9.6% improvement in earnings estimates over the last 30 days [13] - The average short-term price target suggests a potential increase of 12.2% from the last closing price of $11.83, indicating a maximum upside of 86% [13] ACI Worldwide Inc. (ACIW) - ACI Worldwide provides software solutions for digital payments, powering electronic payments for over 5,000 organizations globally, including major financial institutions [15][16] - The company offers real-time payment capabilities and a comprehensive omni-channel payments experience [17] - ACIW's expected revenue and earnings growth rates are 6.8% and 6.1%, respectively, with a 2.6% improvement in earnings estimates over the last 30 days [18] - The average short-term price target indicates a potential increase of 22.9% from the last closing price of $51.31, suggesting a maximum upside of 38.4% [18] Coinbase Global Inc. (COIN) - Coinbase provides financial infrastructure for the crypto economy, offering a user-friendly platform for consumers and sophisticated trading features for experienced users [19][20] - The expected revenue and earnings growth rates for Coinbase are 26.2% and 0.7%, respectively, with a 2.7% improvement in earnings estimates over the last 30 days [21] - The average short-term price target indicates a potential increase of 62.7% from the last closing price of $172.21, suggesting a maximum upside of 179.1% [22] OppFi Inc. (OPFI) - OppFi operates a financial technology platform that helps banks provide credit access to consumers, focusing on those turned away by mainstream options [23] - The expected revenue and earnings growth rates for OppFi are 9.7% and 12.6%, respectively, with a 10.3% improvement in earnings estimates over the last 60 days [25] - The average short-term price target indicates a potential increase of 38.4% from the last closing price of $8.35, suggesting a maximum upside of 55.7% [25]

OppFi Inc. (OPFI) shares have skyrocketed 202.9% in a year, outperforming the 16.8% rise of its industry and the 9.6% increase in the Zacks S&P 500 Composite.OPFI performed significantly better than its industry peers, Fiserv, Inc. (FI) and Paymentus Holdings, Inc. (PAY) . FI and PAY shares have rallied 44.7% and 57.6% in a year.One-Year Price Performance Image Source: Zacks Investment Research OppFi has also outperformed its industry, Fiserv and Paymentus Holdings in the past six months. OPFI shares have s ...

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Information Services Group (III) 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? Let's take a closer look at the stock's year-to-date performance to find out.Information Services Group is a member of the Business Services sector. This group includes 272 individual stocks and c ...

Group 1 - The article does not provide any specific insights or analysis regarding companies or industries [1]

Group 1 - The article highlights the impact of President Trump's recently announced universal and "reciprocal" tariffs, which are viewed as an international black swan event, and emphasizes the importance of monitoring the response of US consumers [1] Group 2 - The content discusses the role of freelance financial writers in creating engaging narratives around financial data, focusing on thematic investing, market events, and client education [2]

OppFi Inc. (OPFI) shares have jumped 36.9% in the year-to-date period, outperforming the 1.9% rise of its industry and the 4.1% decline in the Zacks S&P 500 Composite.OPFI’s performed significantly better than its industry peers, Sezzle Inc. (SEZL) and Remitly Global, Inc. (RELY) . SEZL and RELY shares have declined marginally and 8.2% year-to-date period, respectively.YTD Price Performance Image Source: Zacks Investment Research In the last trading session, the OPFI stock closed at $9.8, moving down 82.7% ...

A downtrend has been apparent in OppFi Inc. (OPFI) lately with too much selling pressure. The stock has declined 29.4% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spo ...

Financial Performance - For the year ended December 31, 2024, total revenue was approximately $526 million, representing a period-over-period growth of approximately 3.3% from $509 million in 2023[34]. - Net revenue for the year ended December 31, 2024, was $321,478,000, up from $273,182,000 in 2023, representing a year-over-year increase of about 17.7%[494]. - Net income attributable to OppFi Inc. was $7,258,000 for 2024, a significant recovery from a net loss of $1,005,000 in 2023[494]. - Earnings per share (EPS) for 2024 was $0.36, compared to a loss of $0.06 per share in 2023, indicating a turnaround in profitability[494]. - Cash and restricted cash totaled $88,288,000 as of December 31, 2024, an increase from $73,943,000 in 2023, reflecting enhanced liquidity[488]. - Total assets increased to $641,171,000 as of December 31, 2024, compared to $601,543,000 in 2023, reflecting a growth of approximately 6.5%[488]. - The company reported a provision for credit losses on finance receivables of $42,000 in 2024, a significant decrease from $4,348,000 in 2023, suggesting improved credit quality[494]. - The company reported a net cash provided by operating activities of $323,806,000 for 2024, compared to $296,146,000 in 2023 and $243,297,000 in 2022[503]. - The total stockholders' equity increased to $234,213,000 by December 31, 2024, from $194,029,000 in 2023[500]. Loan Operations - OppFi facilitated more than $7.2 billion in gross loan issuance covering over 4.0 million loans since inception through December 31, 2024[26]. - The average installment loan facilitated by OppFi is approximately $1,750, with an average contractual term of 11 months[24]. - The average APR for a loan facilitated on the OppLoans platform in 2024 was 163%, with a three-year average of approximately 157%[38]. - OppFi served more than 1.4 million unique customers since its inception as of December 31, 2024[33]. - Approximately 20.9% of loans originated were generated through search engine optimization, email marketing, and customer referrals[54]. - Finance receivables originated and acquired amounted to $732,045,000 in 2024, slightly up from $721,287,000 in 2023[503]. - The total unpaid principal balance of installment finance receivables was $425.240 million, an increase from $416.463 million in 2023, representing a growth of 1.86%[568]. - The fair value of finance receivables at the end of 2024 was $473.696 million, up from $463.320 million in 2023, indicating a year-over-year increase of 1.99%[571]. - The company originated $732.012 million in finance receivables in 2024, compared to $719.503 million in 2023, reflecting a growth of 1.76%[571]. Customer Experience and Satisfaction - OppFi's net promoter score (NPS) was 78 for the year ended December 31, 2024, indicating strong customer satisfaction[33]. - The company maintains an A+ rating from the Better Business Bureau (BBB) and a 4.5/5.0 star rating on Trustpilot as of December 31, 2024[33]. - OppFi's platform offers a highly automated, transparent, and fully digital experience for consumers[26]. - OppFi's platform provides simple interest installment loans with no balloon payments or ancillary fees, targeting approximately 60 million U.S. consumers facing credit insecurity[41]. Regulatory Compliance - OppFi is subject to extensive regulations from various federal, state, and local authorities, which may impact its operations and compliance efforts[63]. - The Consumer Financial Protection Bureau (CFPB) has significant regulatory authority over OppFi, including the ability to conduct examinations and enforce consumer protection laws[64]. - OppFi assists its bank partners in complying with the Truth in Lending Act (TILA), which mandates clear disclosures regarding loan terms, including annual percentage rates and finance charges[66]. - The Equal Credit Opportunity Act (ECOA) prohibits discrimination in lending, and OppFi ensures compliance by providing adverse action notices to denied applicants[67]. - Under the Fair Credit Reporting Act (FCRA), OppFi must accurately report loan payment information and provide timely adverse action notices when credit applications are declined[68]. - OppFi's operations are governed by the Fair Debt Collection Practices Act (FDCPA), which sets guidelines for debt collection practices to prevent abusive conduct[70]. - The Gramm-Leach-Bliley Act (GLBA) requires OppFi to protect consumer information and provide privacy policies detailing data collection and sharing practices[71]. - The Dodd-Frank Act established the CFPB, which oversees OppFi's compliance with federal consumer financial laws and can impose restrictions on lending practices[72]. - OppFi must comply with the Electronic Fund Transfer Act (EFTA), ensuring consumer consent for electronic fund transfers and adherence to NACHA guidelines[76]. - OppFi's email communications comply with the CAN-SPAM Act, which regulates commercial email practices and requires opt-out mechanisms for recipients[79]. - OppFi's loans to servicemembers under the Servicemembers Civil Relief Act (SCRA) are capped at an interest rate of 6% during active duty, impacting the revenue from these loans[80]. - The Military Lending Act limits the Military Annual Percentage Rate to 36% for certain active duty members and their dependents, ensuring compliance with these regulations is a priority for OppFi[81]. - OppFi's anti-money laundering (AML) program is designed to prevent illicit activities and includes customer due diligence and record-keeping policies, which are essential for maintaining compliance with federal laws[82]. - The company is subject to various state usury laws that could affect the interest rates and fees charged on loans, which may impact its growth if compliance is not maintained[87]. Operational Efficiency - Approximately 92.5% of underwriting decisions on the OppFi platform were automated during the year ended December 31, 2024[30]. - Approximately 92.5% of credit decisions were automated in the year ended December 31, 2024, enhancing efficiency in the loan approval process[41]. - The bank partner model allows OppFi to facilitate loan products while managing customer acquisition, underwriting, and servicing, enhancing operational efficiency[46]. - OppFi's technology-driven platform enables scalability and cost efficiency, allowing it to serve consumers nationwide without physical store costs[44]. Workforce and Corporate Structure - As of December 31, 2024, OppFi employed approximately 445 full-time employees, reflecting a commitment to building a diverse and talented workforce[100]. - The company has implemented a compliance management system to adhere to consumer protection laws, minimizing compliance-related risks[94]. - Noncontrolling interests held by Members were 74.4% and 83.0% of the economic ownership percentage of OppFi-LLC as of December 31, 2024 and 2023, respectively[557]. Capital and Investments - The company has established a robust system for servicing costs, default rates, and prepayment rates, which are critical for accurate financial forecasting and risk management[479]. - The company issued 1,508,113 shares under the equity incentive plan in 2024[500]. - Stock-based compensation expense rose to $5,270,000 in 2024, compared to $4,067,000 in 2023[503]. - The company incurred transaction costs of approximately $0.7 million related to the acquisition of a 35% equity interest in Bitty Holdings, LLC[531]. - The Company has determined that all entities subject to the consolidations guidance are VIEs for which it is the primary beneficiary as of December 31, 2024[517]. Debt and Financing - The company has a borrowing capacity of $525 million as of December 31, 2024, with total outstanding borrowings of $318.758 million[581]. - The company recorded charge-offs of $205.755 million in 2024, down from $220.895 million in 2023, representing a reduction of 6.4%[571]. - The accrued expenses increased to $32.411 million in 2024 from $22.006 million in 2023, marking a significant rise of 47.4%[573]. - The maturity date of the revolving line of credit was extended from April 15, 2025, to October 16, 2026, and the applicable margin rate increased from 7.25% to 7.45%[588]. - The Twelfth Amendment requires OppFi-LLC to repay outstanding principal in installments of $20.0 million on March 31, 2025, and $10.0 million on the last day of each subsequent fiscal quarter[591].