Core Viewpoint - Tree.com (TREE) is positioned to potentially continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates significantly in the last two quarters [1][2]. Earnings Performance - For the last reported quarter, Tree.com achieved earnings of $0.99 per share, exceeding the Zacks Consensus Estimate of $0.74 per share by 33.78% [2]. - In the previous quarter, the company reported earnings of $1.16 per share against an expected $0.37 per share, resulting in a surprise of 213.51% [2]. Earnings Estimates and Predictions - Estimates for Tree.com have been trending higher, influenced by its history of earnings surprises [5]. - The company currently has a positive Earnings ESP of +10.96%, indicating that analysts are optimistic about its earnings prospects [8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong possibility of another earnings beat in the upcoming report [8]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7].

Industry Overview - The Zacks Mortgage & Related Services industry is facing challenges due to uncertainty in the mortgage market, primarily driven by macroeconomic factors and relatively high mortgage rates, which are expected to limit growth in origination volume and refinance activity [1][4] - The industry comprises providers of mortgage-related loans, refinancing, and loan-servicing facilities, with non-banks gaining market share as banks retreat from the mortgage business due to higher compliance and capital requirements [2] Current Trends - Mortgage rates have recently been stable in the mid-6% range, influenced by economic uncertainties, which has kept many homebuyers from entering the market, thereby affecting mortgage demand and origination [3] - The U.S. single-family mortgage debt outstanding is projected to reach $14.7 trillion by the end of 2025, indicating significant growth opportunities in the servicing segment, which is expected to provide a hedge against declining origination volumes [6] Competitive Landscape - The competitive environment in the mortgage services industry is intensifying, with tighter margins and high competition potentially leading to profitability challenges for many originators [5] - The industry's Zacks Industry Rank is 206, placing it in the bottom 16% of over 246 Zacks industries, reflecting bleak near-term prospects [7][8] Financial Performance - The Zacks Mortgage & Related Services industry has underperformed compared to the broader Zacks Finance sector and the S&P 500, declining by 4.1% over the past year, while the finance sector grew by 18.1% and the S&P 500 rose by 9.8% [10] - The industry currently trades at a price-to-book ratio of 3.77X, which is lower than the S&P 500's 6.99X, indicating a premium valuation compared to the broader finance sector [13][15] Company Highlights - Rocket Companies has seen an 8% year-over-year growth in purchase market share and plans to acquire Mr. Cooper Group in a deal valued at $9.4 billion, which will enhance its homeownership platform [19][20] - LendingTree is diversifying its offerings beyond mortgages, focusing on improving purchase conversion rates and expanding into consumer products, with a Zacks Consensus Estimate for 2025 earnings at $3.85 per share, reflecting a 20.7% increase from the previous year [24][27]

LoanDepot (LDI) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 6. On the ...