OppFi Skyrockets 203% in a Year: Should You Buy the Stock Now?

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

OppFi has also outperformed its industry, Fiserv and Paymentus Holdings in the past six months. OPFI shares have surged 76.1%, outperforming the industry’s 3.5% growth, and Fiserv and Paymentus Holdings’ 8.7% and 14.3% rise, respectively.

In the last trading session, the OPFI stock closed at $8.49, moving down 108.8% from the 52-week high of $17.73.

The whopping rise of OPFI shares in the past six months and a year might be appealing to investors, compelling them to buy. Here, we will analyze the stock and recommend to investors whether they should buy the stock or stay away from it.

OppFi’s Focus on Underbanked Consumers Market

Growth in digital banking systems served as a cornerstone in catering to subprime and non-prime consumers. Per OPFI, 47% of Americans lead their lives paycheck to paycheck, facing problems in paying bills, 51% having a credit score lower than 650 and 34% facing problems obtaining new lines of credit. These numbers paint a distinct picture of the challenges faced by most of the population in obtaining accessible and affordable credit.

OppFi has carved out a niche in the market by offering affordable credit to underbanked customers, a market that is anticipated to increase, seeing a 13% CAGR, and reach the $7-trillion mark by 2032. The success is due to the reluctance of traditional financial institutions in providing credit to subprime and non-prime credit holders due to high risks and strict capital requirements. OPFI’s strategy to serve the underbanked helps capture a greater market share away from its competitors.

We anticipate the company’s less strict capital requirements, coupled with its flexible credit model, to provide customers with lower annualized interest rates than the traditional institutions, helping OPFI gain a fair share of the underbanked market in the long run.

OPFI Stock Looks Cheap

OppFi shares are undervalued and appealing to investors. The stock is priced at 7.73 times forward 12-month earnings per share, which is lower than the industry’s average of 22.2 times.

When looking at the trailing 12-month EV-to-EBITDA ratio, OPFI is trading at 6.42 times, below the industry’s average of 13.19 times.

OppFi’s Liquidity Position Surpasses Industry

In the fourth quarter of 2024, OPFI’s current ratio of 1.61 outpaced the industry average of 1.15. The metric gained 6.6% from the year-ago quarter due to increased cash reserves and accounts receivable. A current ratio of more than 1 indicates swift short-term debt payment capabilities.

OPFI’s Impressive Top & Bottom-Line Prospects

The Zacks Consensus Estimate for OppFi’s 2025 revenues is $576.9 million, implying 9.7% year-over-year growth. For 2026, the top line is anticipated to rise 3.6%.

The consensus estimate for OPFI’s 2025 earnings per share stands at $1.07, suggesting a 12.6% year-over-year increase. For 2026, the bottom line is anticipated to rise 9.4%.

Hurry & Buy OppFi Now

OPFI’s strategy to capture a chunk of the underbanked market favors its long-term growth plan, assisting it to compete with traditional financial institutions. Although the stock prices have grown exponentially, the same remains relatively less expensive, providing room for growth.

A robust liquidity position, coupled with strong top and bottom-line prospects, makes OPFI a good investment choice for investors seeking exposure to the fintech sector.

OPFI flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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