At the end of August, eight specialty finance stocks were trading 25% or more below analysts' mean one-year price targets.
Of the 98 specialty finance stocks examined, GSV Capital Corp. led the pack with a 54.7% "implied upside." The business development company has been on a tear over the last year, returning 51.5%. Even so, all three analysts covering the stock still recommend a buy.
Meanwhile, EZCORP Inc. and Encore Capital Group Inc. had the second- and third-highest implied upsides at 39.6% and 33.8%, respectively.
At the other end of the spectrum, specialty lender World Acceptance Corp. was trading 33.2% above its mean one-year price target, more than any other stock in the analysis. World Acceptance's shares have returned 58.5% over the past year. However, none of the four analysts covering the company currently have a buy recommendation on the stock.
As of Aug. 31, a total of 25 specialty finance companies were trading above their one-year mean price target.
In this analysis, S&P Global Market Intelligence examined U.S. specialty finance stocks trading on major exchanges in relation to their mean one-year analyst price targets as of Aug. 31. Only stocks with three or more analyst price targets, and that were trading above $5 per share, were included in this analysis.
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