OneMain (OMF) Stock Jumps 5.5%: Will It Continue to Soar?
OneMain Holdings (OMF) shares rallied 5.5% in the last trading session to close at $40.50. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16.9% gain over the past four weeks.
The performance of consumer loan providers is expected to be solid in the near-term on higher interest rates despite recessionary fears. The Federal Reserve is expected to hike the interest rates to nearly 5.1% by this year-end (having already increased the rates by 450 basis points in 2022) to bring down the “sticky” inflation. This, thus, led to bullish investor sentiments, which drove OMF stock higher.
This consumer finance company is expected to post quarterly earnings of $1.50 per share in its upcoming report, which represents a year-over-year change of -37%. Revenues are expected to be $893.06 million, up 13.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For OneMain, the consensus EPS estimate for the quarter has been revised 6.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on OMF going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
OneMain is a member of the Zacks Financial - Consumer Loans industry. One other stock in the same industry, Open Lending (LPRO), finished the last trading session 4.3% higher at $8.59. LPRO has returned 27.6% over the past month.
Open Lending's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.11. Compared to the company's year-ago EPS, this represents a change of -52.2%. Open Lending currently boasts a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
OneMain Holdings, Inc. (OMF) : Free Stock Analysis Report
Open Lending Corporation (LPRO) : Free Stock Analysis Report
