What Makes OppFi (OPFI) a New Buy Stock

Core Viewpoint - OppFi Inc. (OPFI) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [1]. - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to calculate the fair value of a company's shares, leading to buying or selling actions that affect stock prices [4]. Implications of the Upgrade - The upgrade for OppFi indicates a positive outlook on its earnings, which could lead to increased buying pressure and a rise in stock price [3][5]. - Rising earnings estimates suggest an improvement in OppFi's underlying business, warranting investor confidence and potential stock appreciation [5]. Earnings Estimate Revisions for OppFi - OppFi is projected to earn $1.32 per share for the fiscal year ending December 2025, with no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for OppFi has increased by 7.3% [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10].