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OppFi (OPFI) Surges 13.0%: Is This an Indication of Further Gains?

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OppFi Inc. (OPFI - Free Report) shares soared 13% in the last trading session to close at $9.29. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 23.4% gain over the past four weeks.

This is OppFi's second straight day of gains, underscoring the success of its credit initiatives. Investors are showing confidence in the company, and its focus on product diversification and technology integration is expected to further enhance profits.

This company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +40%. Revenues are expected to be $129.76 million, down 2.4% 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 OppFi, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on OPFI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

OppFi is a member of the Zacks Financial Transaction Services industry. One other stock in the same industry, Fidelity National Information Services (FIS - Free Report) , finished the last trading session 2.8% lower at $77.13. FIS has returned -6.6% over the past month.

Fidelity National's consensus EPS estimate for the upcoming report has changed -1.2% over the past month to $1.35. Compared to the company's year-ago EPS, this represents a change of +43.6%. Fidelity National currently boasts a Zacks Rank of #3 (Hold).


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