Reasons Why OneMain Holdings (OMF) is Highly Favored by Hedge Funds

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Reasons Why OneMain Holdings (OMF) is Highly Favored by Hedge Funds

Muhammad Ali Khalid

Thu, February 19, 2026 at 2:08 PM GMT+9 2 min read

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OMF

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OneMain Holdings (NYSE:OMF) is one of the 12 oversold financial stocks to invest in according to hedge funds.

On February 6, the price target on OneMain Holdings (NYSE:OMF) was reduced from $75 to $70 by Wells Fargo analyst Donald Fandetti, who maintained his Equal Weight rating on the stock. Following this downward revision, the stock now offers a 23% upside.

Fandetti’s pessimism around OneMain Holdings (NYSE:OMF) stems from a lackluster consumer sentiment, inflationary pressures, and macroeconomic uncertainty. Despite these headwinds, he anticipates some NCO improvement for the company with better results projected for the second half of 2026.

On February 6, Kyle Joseph from Stephens reaffirmed his Overweight rating for OneMain Holdings (NYSE:OMF). Joseph also reduced the price target from $90 to $76, yielding a revised upside potential of over 33%.

Joseph based his stance on the management’s guidance for 2026. As per the estimates, trends in loan growth, net charge off, and operating expenses seem fairly aligned with projections made by Stephens. However, he expressed concerns relating to the macroeconomic outlook, which appears to be challenging for OneMain Holdings (NYSE:OMF).

OneMain Holdings (NYSE:OMF) is a holding company with an emphasis on financial services, including consumer finance and insurance services. They engage in origination, underwriting, and servicing of personal loans, secured auto finance, and credit products to nonprime consumers. They also offer optional and non-optional credit insurance products.

While we acknowledge the potential of OMF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.

Disclosure: None. This article is originally published at Insider Monkey.

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