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Is Lending Tree Stock Worth Investing Ahead of Its Q1 Earnings?
ZACKS· 2025-04-29 17:25
Core Viewpoint - LendingTree, Inc. (TREE) is expected to report year-over-year growth in revenues and earnings for the first quarter of 2025, with a consensus estimate of 74 cents per share and revenues of $244 million, reflecting increases of 5.7% and 45.3% respectively [4][5]. Financial Performance - In the last reported quarter, TREE's adjusted net income per share exceeded the Zacks Consensus Estimate, driven by revenue growth, although total costs increased [2]. - TREE has a strong earnings surprise history, beating estimates in three of the last four quarters with an average surprise of 64.76% [2]. Revenue Estimates - The consensus estimate for TREE's first-quarter 2025 revenues is $244 million, indicating a year-over-year rise of 45.3% [5]. - The Home segment is expected to generate revenues of $35 million, a 16.7% increase year-over-year [8]. - The Consumer segment is projected to see revenues of $57 million, suggesting a 9.6% year-over-year rise [10]. - The Insurance segment is anticipated to achieve revenues of $152.7 million, reflecting a significant year-over-year surge of 77.8% [12]. Growth Drivers - TREE is well-positioned for growth, with strong performance in the Insurance segment and increasing traction in the Consumer and Home segments [6]. - The demand for home equity loans has been robust, contributing to sustained growth [7]. - The Consumer segment is expected to benefit from stabilization in credit markets and ongoing platform migrations aimed at enhancing user experience [9][10]. - Management anticipates continued strong underwriting profitability in the Insurance segment, which should drive consumer spending [11]. Strategic Initiatives - TREE is diversifying its revenue sources by expanding non-mortgage product offerings, including personal, auto, small business, and student loans [21]. - The company has completed acquisitions totaling over $1 billion, enhancing its credit services and online lending platform [22]. - Cost-containment efforts, including headcount reduction and elimination of less profitable businesses, are expected to support bottom-line growth [23]. Valuation - TREE's stock is currently trading at a forward price-to-book ratio of 6.41, above its median level of 4.22 and the industry average of 3.92 [19].
LendingTree, Inc. to Report First Quarter 2025 Earnings on May 1, 2025
Prnewswire· 2025-04-23 20:00
Core Viewpoint - LendingTree, Inc. is set to release its fiscal first quarter 2025 results on May 1, 2025, after market close, along with a letter to shareholders available on its website [1][2]. Company Overview - LendingTree, Inc. operates LendingTree.com, a leading online financial services marketplace in the U.S. [1][3] - The company connects consumers with over 500 financial partners, offering access to loans, credit cards, insurance, and more [3]. - Since its inception, LendingTree has assisted millions of customers in obtaining financing, saving money, and enhancing their financial health [3]. - The company is headquartered in Charlotte, NC [4].
LendingTree Rises 9.9% in a Year: Is the Stock Worth Buying Now?
ZACKS· 2025-04-10 17:05
Core Viewpoint - LendingTree, Inc. has shown resilience and growth through diversification and strategic acquisitions, positioning itself well for future profitability despite challenges in the mortgage sector [4][20]. Performance Overview - LendingTree's shares have increased by 9.9% over the past year, outperforming the industry growth of 7.9% and the S&P 500's rise of 6.8% [1]. - The company has a strong earnings surprise history, surpassing Zacks Consensus Estimates in three of the last four quarters [12]. Revenue Diversification - The company has shifted from an overreliance on mortgage lending to a diversified online marketplace, expanding its offerings to include credit cards, personal loans, auto loans, small business loans, and student loans [5][6]. - Non-mortgage revenue streams have experienced a compound annual growth rate of 3.3% over the past three years, indicating successful diversification efforts [7]. Inorganic Growth and Technology Investment - LendingTree has engaged in multiple acquisitions exceeding $1 billion, enhancing its credit services and online lending platform [8]. - The investment in EarnUp, a consumer-facing payments platform, reflects the company's commitment to building a tech-enabled ecosystem for financial health management [9]. Cost Management - The company has implemented cost-containment measures, including headcount reductions and the elimination of less profitable businesses, resulting in a decrease in variable marketing margin from 41.7% in 2023 to 33.8% in 2024 [10]. Earnings Growth and Projections - In Q4 2024, LendingTree reported adjusted EPS of $1.16, a significant increase from 28 cents in the previous year, driven by a 188% year-over-year growth in the Insurance segment [11]. - Earnings are projected to grow by 20.7% in 2025 and 23.6% in 2026, outpacing peers [14][18]. Sales Estimates - For 2025, the company is expected to generate revenues of approximately $1.01 billion, with a year-over-year growth estimate of 11.85% [21]. - The sales growth for 2026 is projected at 5.68% [21]. Valuation - LendingTree is currently trading at a forward P/E ratio of 10.89X, which is lower than the industry average of 19.19X, indicating it may be undervalued relative to its peers [23].
Why Is Tree.com (TREE) Down 3.4% Since Last Earnings Report?
ZACKS· 2025-04-04 16:35
Core Viewpoint - Tree.com has experienced a 3.4% decline in share price over the past month, although it has outperformed the S&P 500 index [1] Group 1: Earnings Report and Estimates - The consensus estimate for Tree.com has shifted upward by 161.5% in the past month, indicating positive revisions [2] - The most recent earnings report is crucial for understanding the key drivers affecting the company's performance [1] Group 2: VGM Scores - Tree.com holds a strong Growth Score of A and a momentum score of A, while its value score is C, placing it in the middle 20% for that investment strategy [3] - The aggregate VGM Score for Tree.com is A, which is significant for investors not focused on a single strategy [3] Group 3: Outlook - The upward trend in estimates suggests a promising outlook for Tree.com, supported by a Zacks Rank of 1 (Strong Buy) [4] - An above-average return is expected from the stock in the coming months based on the current estimates and revisions [4]
Tree.com (TREE) May Find a Bottom Soon, Here's Why You Should Buy the Stock Now
ZACKS· 2025-04-01 15:00
Hammer candles can occur on any timeframe -- such as one-minute, daily, weekly -- and are utilized by both short-term as well as long-term investors. Like every technical indicator, the hammer chart pattern has its limitations. Particularly, as the strength of a hammer depends on its placement on the chart, it should always be used in conjunction with other bullish indicators. Shares of Tree.com (TREE) have been struggling lately and have lost 9.6% over the past week. However, a hammer chart pattern was for ...
Tree.com (TREE) Shows Fast-paced Momentum But Is Still a Bargain Stock
ZACKS· 2025-04-01 13:50
Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum if future growth does not justify high valuations [1] - Identifying the right entry point for fast-moving stocks is challenging, and traditional momentum parameters may not always be reliable [1] Group 2: Bargain Stocks with Momentum - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: Tree.com (TREE) Analysis - Tree.com (TREE) has shown significant price momentum with a four-week price change of 31.8% [3] - Over the past 12 weeks, TREE's stock gained 26.1%, indicating its ability to deliver positive returns over a longer timeframe [4] - TREE has a beta of 1.9, suggesting it moves 90% higher than the market in either direction, indicating fast-paced momentum [4] Group 4: Valuation and Earnings Estimates - TREE has a Momentum Score of A, indicating a favorable time to invest [5] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [6] - TREE is trading at a Price-to-Sales ratio of 0.75, meaning investors pay 75 cents for each dollar of sales, indicating a reasonable valuation [6] Group 5: Additional Investment Opportunities - Besides TREE, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Zacks offers over 45 Premium Screens to help identify potential winning stock picks based on various investing styles [8]
Wall Street Analysts See a 28.38% Upside in Tree.com (TREE): Can the Stock Really Move This High?
ZACKS· 2025-03-31 14:55
Group 1 - Tree.com (TREE) shares have increased by 27.3% over the past four weeks, closing at $51.41, with a mean price target of $66 indicating a potential upside of 28.4% [1] - The average price targets from analysts range from a low of $58 to a high of $72, with a standard deviation of $4.87, suggesting a relatively high agreement among analysts regarding the stock's price direction [2][9] - Analysts are optimistic about TREE's earnings prospects, as indicated by a positive trend in earnings estimate revisions, which has shown a strong correlation with near-term stock price movements [4][11] Group 2 - Over the last 30 days, three earnings estimates for TREE have been revised upward, resulting in a Zacks Consensus Estimate increase of 111.3% [12] - 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, indicating strong potential for upside [13] - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [13]
Bull of the Day: LendingTree (TREE)
ZACKS· 2025-03-20 12:00
Three out of four days for the market have been positive. It’s helped talk investors off the ledge. That mean streak following all the tariff announcements was nothing short of brutal. With a ton of the high-beta names recovering, investors are looking for names to throw money at.Be careful out there. Don’t just fire off at anything that moves. Rather, look for stocks with strong earnings trends which stand the test of time. That way, when things get rocky again, which we all know they will eventually, you’ ...
Earnings Estimates Rising for Tree.com (TREE): Will It Gain?
ZACKS· 2025-03-18 17:21
Core Viewpoint - Investors are encouraged to consider Tree.com (TREE) due to solid improvements in earnings estimates and positive short-term price momentum [1][2] Earnings Estimates - Analysts are increasingly optimistic about Tree.com's earnings prospects, leading to higher estimates that are expected to reflect positively in the stock price [2] - The current quarter's earnings estimate is projected at $0.74 per share, indicating a year-over-year increase of +5.71% [4] - Over the past 30 days, the Zacks Consensus Estimate for Tree.com has surged by 435.29%, with three estimates moving higher and no negative revisions [4] - For the full year, the earnings estimate stands at $3.92 per share, representing a year-over-year change of +22.88% [5] - The consensus estimate for the current year has increased by 111.29%, with three estimates moving higher against one negative revision [5] Zacks Rank - Tree.com has achieved a Zacks Rank 1 (Strong Buy), reflecting strong agreement among analysts in raising earnings estimates [3][6] - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008 [3] Investment Outlook - The strong estimate revisions have led to a 7.8% increase in Tree.com's stock over the past four weeks, suggesting potential for further upside [7] - Investors may consider adding Tree.com to their portfolios based on the positive earnings outlook and Zacks Rank [7]
Tree.com (TREE) Surges 5.8%: Is This an Indication of Further Gains?
ZACKS· 2025-03-17 13:30
Tree.com (TREE) shares soared 5.8% in the last trading session to close at $49.26. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.8% gain over the past four weeks.LendingTree stock is witnessing a strong price increase driven by its strong fourth-quarter 2024 results and upbeat 2025 outlook. For 2025, the company forecasts revenue growth of 9-14% on a year over year basis to $985M-$1.025B, with double-digit gains in the Home a ...