OPFI

Stock Performance: OppFi Inc. (OPFI) has seen a 32.5% increase in shares year-to-date, outperforming its industry and notable competitors like Cantaloupe and Fidelity National Information Services.

Operational Efficiency: The company's AI and machine learning-based Model 6 improved auto approval rates and significantly reduced expenses, leading to a 136.9% increase in net income year-over-year.

Positive Guidance: OppFi has consistently raised its guidance for adjusted net income and earnings per share for 2025, reflecting strong investor confidence in its profitability.

Valuation Appeal: OPFI is currently undervalued compared to its industry, with lower forward earnings and EV-to-EBITDA ratios, making it an attractive option for value-based investors.

Bargain Stocks Highlighted: The article discusses five stocks with attractive EV-to-EBITDA ratios, including El Pollo Loco Holdings, OppFi Inc., Edison International, ScanSource, Inc., and Zions Bancorporation, which are considered undervalued based on this metric.

EV-to-EBITDA vs. P/E Ratio: EV-to-EBITDA is presented as a superior valuation metric compared to the traditional price-to-earnings (P/E) ratio, as it accounts for a company's total value and is less susceptible to manipulation, making it useful for evaluating firms with negative net earnings.

Growth Projections: Each highlighted stock has promising earnings growth projections for 2025, with OppFi Inc. expected to grow by 65.3%, followed by Edison International at 23.7%, and Zions Bancorporation at 19%.

Investment Tools and Resources: The article promotes Zacks Investment Research's tools, such as the Research Wizard, which helps investors screen stocks and develop investment strategies, emphasizing the importance of combining multiple valuation metrics for better decision-making.