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OneMain Holdings upgraded to strong buy with 20%+ upside and 8% dividend yield

Analyst Insights
22 May 2026
Seeking Alpha
View Source
Bullish
pluang ai news

OneMain Holdings (OMF) is rated a strong buy due to its conservative underwriting, strong reserves covering 242% of delinquencies, and stable employment trends that keep credit risk manageable despite inflation. The company expects loan growth of 6-9% and net charge-offs in the upper half of 7.4-7.9%. Shares trade at a low 7.2 times earnings with a capital return yield over 10%, and potential for valuation expansion to 8.5-9 times earnings, offering investors attractive upside and income potential.

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