Is Enova International (ENVA) The Best Small-Cap Stock to Benefit From Fed’s Rate-Cut Cycle?

We recently published 10 Best Small-Cap Stocks With Huge Potential According to Reddit as Market Looks Beyond AI Trade. Enova International Inc (NYSE:ENVA) is among the best small-cap stocks to buy according to Redditors.

Enova International Inc (NYSE:ENVA) is a financial services company providing installment loans and lines of credit accounts. The stock is up 31% so far this year. The company is positioned to benefit from the ongoing rate cut cycle of the Federal Reserve and small businesses’ preference for non-banking lenders. In the third quarter, the company posted revenue growth of 16%, while small business lending increased 29% on an annual basis.

“Loans at a decent price, has pretty crazy growth lately and with lower rates coming may potentially increase business,” a Redditor said while pitching this small-cap stock.

While we acknowledge the risk and potential of ENVA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ENVA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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