OppFiNYSE: OPFI

OppFi (OPFI) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

Stocks swooned into the end of the week, as inflation data from the government showed us all that inflation's here to stay, perhaps longer than many investors had anticipated.   And as a result, the read across is that interest rate cuts from the Federal Reserve may not be coming until the summer, if at all.

OppFi Inc. (NYSE:OPFI ) Q4 2023 Earnings Conference Call March 7, 2024 4:30 PM ET Company Participants Shaun Smolarz - Head, Investor Relations Todd Schwartz - Chief Executive Officer & Executive Chairman Pam Johnson - Chief Financial Officer Conference Call Participants Mike Grondahl - Northland Securities Zachary Oster - JMP Securities Dave Storms - Stonegate Operator Good afternoon, and welcome to OppFi's Fourth Quarter and Full Year 2023 Earnings Conference Call. All participants are in listen-only mode.

OppFi Inc. is a small fintech company based in Chicago that provides a financial technology platform that offers a variety of lending products. The stock is very cheap on a forward earnings and revenue basis. However, there are two caveats to that assessment.  An analysis around OppFi, Inc. follows in the paragraphs below.

OppFi Inc. (OPFI) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.01 per share a year ago.

OppFi has shown solid growth in its recent quarter, with a 14% YoY increase in revenue and a 90% YoY increase in net income. The company operates in the financial technology sector, offering lending products to consumers through its innovative platform. While there are risks associated with the potential for a recession and the credit quality of borrowers, OPFI has taken strategic measures to mitigate these risks and focus on profitability.

OppFi's stock has traded rangebound for the past year, despite beating revenue and earnings estimates for its fiscal 2023 second quarter. The company's sales multiple has collapsed, with the stock currently trading at a 0.16x price-to-sales ratio. OppFi's valuation does not reflect its growing revenues and positive EPS, as risk-off sentiment and recession concerns weigh on the stock.

Warning: while this discussion obviously centers on penny stocks to buy, this subsegment of the market carries astounding risks. While it's difficult to verify, one source has the failure rate of these speculative, low-market capitalization entities as over 90%.

OppFi Inc. (OPFI) came out with quarterly earnings of $0.05 per share, beating the Zacks Consensus Estimate of a loss of $0.01 per share. This compares to earnings of $0.01 per share a year ago.