OMF Should I Buy
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OneMain Holdings Inc (OMF) is a good buy for a beginner investor with a long-term horizon and $50,000-$100,000 available for investment. Despite short-term technical weakness, the company's strong financial performance, positive analyst sentiment, and potential for long-term growth make it a compelling investment opportunity.
The stock is currently in a short-term bearish trend, as indicated by the negative MACD (-0.679) and oversold RSI (9.928). The price is trading near its support level (S1: 57.969) with a pre-market price of 57.44. However, the oversold RSI suggests a potential rebound in the near term.
Strong Q4 financial performance with revenue up 7.61% YoY, net income up 61.90% YoY, and EPS up 63.81% YoY. Analysts maintain positive ratings with several firms reiterating Buy or Outperform ratings despite slight price target adjustments. The stock shows a high probability of a 19.03% gain in the next month based on historical patterns.
Technical indicators suggest short-term bearish momentum, with MACD and moving averages not yet signaling a reversal. The macroeconomic backdrop and persistent inflation remain concerns, as noted by analysts.
In Q4 2025, the company reported significant growth: Revenue increased to $1.612 billion (+7.61% YoY), Net Income rose to $204 million (+61.90% YoY), EPS surged to 1.72 (+63.81% YoY), and Gross Margin improved to 79.96% (+0.91% YoY).
Analysts have slightly lowered price targets post-Q4 results but remain optimistic overall. TD Cowen, RBC Capital, and Stephens maintain Buy or Outperform ratings, while Barclays and Wells Fargo have more conservative Equal Weight ratings. JPMorgan holds an Underweight rating but acknowledges the company's consumer credit performance.
