The consumer finance industry suffered in 2020 amid a decline in consumer spending. However, analysts see a sharp rebound in 2021 and beyond as the world comes back to normal. As public distrust in major banks grows amid an increased likelihood of a global recession following the coronavirus pandemic, the consumer finance sector is thriving. The rapidly changing consumer habits in borrowing and managing finances is also proving to be a tailwind for consumer finance companies in the U.S. People use consumer finance companies for credit cards, receiving loans for cars, education and housing. The consumer finance sector got hammered by the coronavirus pandemic as people restricted spending and borrowing. But signs of recovery are already here.
Insider Monkey shared a report by Deloitte, according to which:
“Personal consumer expenditure jumped 8.9% in the third quarter on a year-over-year basis. The report noted that spending in the third quarter was surprisingly upbeat despite the withdrawal of $600 weekly supplements for unemployment insurance.”
We will discuss the Top 10 Consumer Stocks for 2021 as reviewed by Insider Monkey. On 10th position in the list is Lending Club Corp which is the first every peer-to-peer lending firm which has registered its offerings in the form of securities with that of SEC. Around $15.98 billion in loans have been reported by the company in 2015. A rallied have been shared by Lending Club in 2020 when the acquisition of Radius Bancorp by the company has been approved by Office of Comptroller of the Currency. In the Q3 of 2020, the revenues of the company were $74.7 million which is $16.6 million more than the forecasted value. In the Q3 of 2020, around 13 hedge funds have shown bullish behavior towards the shares of Lending Club.
On 9th position is the Nebraska-based lending company, Nelnet Inc., which is dealing primarily with educational financial services and student loans. Great Lakes Educational Loan Services, Inc., has been acquired by Nelnet in 2018 which makes it the biggest student loans servicer in the USA. The quarterly dividend was increased by the company in November 2020 by 10%. The revenues of the company in Q3 of 2020 were reported to be $306.82 million. According to Insider Monkey, total of 13 stakes have shown bullish attitude towards the stake of Nelnet in Q4 of 2020.
There are 8 more consumer finance stocks on the list which can be read at 10 Best Consumer Finance Stocks To Buy Now.