Credit Acceptance Corporation (CACC) has shown strong shareholder value growth despite recent underperformance due to weak loan cohorts. However, with newer vintages expected to improve economics, earnings are projected to rebound sharply from 2026 onward. The recent withdrawal of a CFPB lawsuit and potential buybacks make CACC an attractive long-term investment opportunity.

With a stock price trading at around $492.87 as of October 9th, Credit Acceptance Corporation (CACC) has seen steady growth over the years, returning 170x since 1992 with a 25% CAGR. Despite recent stagnation in stock price, the company’s disciplined capital allocation and strong franchise indicate potential for significant future upside.

Recent analysis of Credit Acceptance Corporation (CACC) by Djokovic1 highlights the company’s potential for earnings rebound from 2026 onward, driven by newer loan vintages under stricter underwriting standards. With management’s adjustments and improving revenue yields, the stock offers a compelling long-term investment opportunity with an expected 30%+ IRR.

Despite recent macroeconomic headwinds affecting stock performance, Upstart Holdings, Inc. (UPST) continues to refine its AI-driven credit models. Djokovic1 shares a bullish view on the credit sector, emphasizing Credit Acceptance Corporation’s disciplined underwriting and earnings rebound potential as a more attractive investment opportunity.

Read more at Yahoo Finance: Credit Acceptance Corporation (CACC): A Bull Case Theory