Core Insights - The article discusses the competitive landscape between Pagaya Technologies Ltd. (PGY) and LendingTree, Inc. (TREE) in the fintech sector, particularly focusing on their differing business models and risk profiles [1][3]. Pagaya Technologies Ltd. (PGY) - PGY leverages AI and machine learning to optimize credit underwriting and diversify funding sources, expanding from personal loans to auto lending and point-of-sale financing [2][4]. - The company has established a network of over 135 institutional partners and utilizes forward flow agreements to ensure funding stability, especially during market disruptions [5]. - In 2025, PGY achieved three consecutive quarters of positive GAAP net income, marking a turnaround from previous losses, with a year-over-year network volume growth of 10.5% [6]. - PGY's proprietary technology allows lenders to present pre-approved offers to customers, enhancing credit access with minimal marketing costs [7]. - The company operates with minimal on-balance-sheet exposure, acquiring loans through asset-backed securities (ABS) or forward flow agreements, which limits credit and market risks [8]. LendingTree, Inc. (TREE) - TREE operates as an online marketplace connecting consumers with financial service providers, evolving its strategy to diversify into non-mortgage products [9][10]. - The company has expanded its offerings to include credit cards and various loan types, with a focus on enhancing cross-selling opportunities [11][13]. - In the third quarter of 2025, TREE's adjusted EBITDA increased by 48% year-over-year, driven by strong revenue growth across all business segments [14]. - TREE's revenue projections for 2025 are between $1.08 billion and $1.09 billion, reflecting a year-over-year growth rate of 20.5% [22]. Comparative Analysis - Over the past six months, PGY shares increased by 6.3%, while TREE shares surged by 46.5%, indicating stronger investor sentiment towards TREE [15]. - PGY's price-to-book (P/B) ratio is 3.40X, lower than TREE's 5.59X, suggesting PGY is currently undervalued [16]. - PGY's return on equity (ROE) stands at 44.45%, compared to TREE's 59.04%, indicating TREE's more efficient use of shareholder funds [18]. - The Zacks Consensus Estimate projects PGY's revenues for 2025 and 2026 to grow by 28.4% and 19.2%, respectively, while TREE's growth rates are 20.5% and 5.7% [22][24]. Investment Outlook - PGY is characterized as a profitable fintech leader with strong revenue growth, a resilient business model, and a capital-efficient funding strategy [26]. - TREE is noted for its established marketplace model and superior ROE, with ongoing efforts to diversify its product offerings supporting revenue growth [27]. - While TREE has operational maturity, PGY presents a stronger revenue and earnings growth outlook, along with better valuation metrics [28][29].

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights LendingTree (TREE) as a strong candidate for value investors due to its favorable financial metrics and Zacks Rank [1][2][6]. Company Analysis - LendingTree (TREE) currently holds a Zacks Rank of 1 (Strong Buy) and an A for Value, indicating strong potential for value investors [4]. - The stock has a P/E ratio of 16.18, significantly lower than the industry average P/E of 23.82, suggesting it may be undervalued [4]. - Over the past 12 months, TREE's Forward P/E has fluctuated between 7.67 and 19.07, with a median of 12.35, further indicating its valuation dynamics [4]. - The P/S ratio for TREE is 0.62, compared to the industry average P/S of 1.41, reinforcing the notion of undervaluation [5]. - The combination of these metrics, along with a strong earnings outlook, positions TREE as an impressive value stock at present [6].

Core Viewpoint - Tree.com (TREE) has experienced a significant decline of 16.9% over the past four weeks, but it is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously expected [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2] - TREE's current RSI reading is 29.41, suggesting that the heavy selling pressure may be exhausting, indicating a possible bounce back towards equilibrium [5] Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts to raise earnings estimates for TREE, with the consensus EPS estimate increasing by 29.7% over the last 30 days, which often correlates with price appreciation [7] - TREE holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [8]

Core Insights - The financial sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **Trupanion Inc (NASDAQ:TRUP)**: Reported better-than-expected quarterly earnings with record profitability and subscription growth. The stock has fallen approximately 12% over the past month, with a current RSI of 29.6 and a closing price of $37.74 [8] - **LendingTree Inc (NASDAQ:TREE)**: Exceeded third-quarter estimates and raised FY2025 sales guidance. The stock has decreased around 14% in the last month, with an RSI of 29.2 and a closing price of $49.12 [8] - **Manhattan Bridge Capital Inc (NASDAQ:LOAN)**: Reported disappointing quarterly earnings but noted strong loan performance. The stock has declined about 11% over the past month, with an RSI of 28.9 and a closing price of $4.65 [8]

Core Insights - LendingTree hosted its annual Lender Summit to evaluate the market and regulatory outlook for 2026, focusing on how to assist consumers in achieving their financial goals [1] - The 2025 LendingTree Innovation Challenge showcased nine fintech companies, with Newzip winning for the second consecutive year, highlighting advancements in technology for the lending and homebuying experience [2][4] Company Developments - Newzip's platform aims to enhance the conversion of pre-approved borrowers into homebuyers by integrating real estate agents and borrower engagement tools, introducing Newzip Direct to facilitate communication between lenders and agents [3] - The Innovation Challenge serves as a platform for fintech startups to receive direct feedback from top lenders, which is crucial for product development and alignment with market needs [4][5] Industry Trends - The pace of fintech innovation is accelerating, particularly in the AI era, with lenders increasingly seeking services that streamline the homebuying process for consumers [5] - LendingTree is committed to fostering innovation that improves transparency and efficiency in the mortgage ecosystem, emphasizing the importance of emerging technologies in reshaping the lending experience [5]

Core Viewpoint - Tree.com (TREE) shares have increased by 5.1% in the last four weeks, closing at $62.02, with a potential upside of 31.1% based on Wall Street analysts' mean price target of $81.33 [1][11]. Price Targets - The average price target consists of six estimates ranging from a low of $72.00 to a high of $85.00, with a standard deviation of $4.93, indicating a relatively tight clustering of estimates [2][9]. - The lowest estimate suggests a 16.1% increase from the current price, while the highest indicates a 37.1% upside [2]. Analyst Sentiment - Analysts show strong agreement in revising earnings estimates higher, which historically correlates with stock price movements [4][11]. - The Zacks Consensus Estimate for the current year has risen by 29.7% over the past month, with three estimates increasing and no negative revisions [12]. Zacks Rank - TREE holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, suggesting a strong potential upside [13]. Caution on Price Targets - While price targets are commonly referenced, they can mislead investors, as empirical research indicates they rarely predict actual stock price movements accurately [7][10]. - Analysts may set optimistic price targets due to business incentives, which can inflate expectations [8][9].

Core Viewpoint - Tree.com (TREE) shares have increased by 5.1% over the past four weeks, closing at $62.02, with a potential upside of 31.1% based on Wall Street analysts' mean price target of $81.33 [1] Price Targets - The average price target consists of six short-term estimates ranging from a low of $72.00 to a high of $85.00, with a standard deviation of $4.93, indicating a potential increase of 16.1% to 37.1% from the current price [2] - A low standard deviation suggests a greater agreement among analysts regarding the price targets, which can be a useful indicator for investors [2][9] Analyst Consensus and Earnings Estimates - Analysts are expected to revise earnings estimates upward, indicating a positive trend that may predict an upside for TREE, although it does not specify the extent of the potential stock surge [4] - The consensus price target is often sought by investors, but the reliability of analysts in setting these targets has been questioned [3][6] Analyst Behavior and Incentives - Analysts may set overly optimistic price targets due to business incentives, which can lead to inflated estimates [8] - A tight clustering of price targets, indicated by a low standard deviation, reflects a high degree of agreement among analysts about the stock's price movement direction [9]

Core Insights - The new tariff policies implemented by Trump are expected to increase U.S. consumer spending by hundreds of billions during the holiday season, with an estimated total cost increase of $40.6 billion for consumers and retailers combined [1][2] Group 1: Consumer Impact - Consumers are projected to bear approximately $28.6 billion of the additional costs, resulting in an average increase of $132 per shopper [1] - This additional expenditure may lead many families to reduce their gift spending or incur more debt, creating tangible financial pressure [1] Group 2: Retailer Expectations - Retail analysts anticipate a decline in holiday season sales due to the increased costs from tariffs, with many consumers facing a "harsh reality" of either reducing gift quantities or absorbing higher costs [2] - Despite the overall sales decline, demand for electronics and clothing remains strong, although price increases may limit options for some consumers [2] Group 3: Product-Specific Cost Increases - Electronics consumers are expected to experience the highest impact, with an average additional expenditure of $186 per person, followed by clothing and accessories at $82, personal care and toys at $14, and food and candy at $12 [2]

Core Insights - American consumers are expected to spend $40.6 billion more this holiday season due to tariffs imposed by President Trump, with consumers bearing the majority of the costs [2][3] - The average additional cost per shopper is estimated to be $132, leading to potential changes in consumer behavior regarding gift-giving and spending [3][4] Consumer Impact - Consumers will incur an estimated $28.6 billion of the total additional costs from tariffs, while retailers will absorb the remaining $12 billion [3] - Retail analysts predict that higher costs will result in consumers purchasing fewer items this holiday season, which may lead to reduced gift-giving or increased debt [4] Specific Product Categories - Holiday electronics will see the highest additional cost, averaging $186 per shopper, followed by clothing and accessories at $82 per shopper [5][6] - Other categories such as personal care items, beauty products, and toys will incur an extra cost of $14 per shopper, while food and candy will cost an additional $12 per buyer due to tariffs [6]