Bull of the Day: LendingTree (TREE)

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’ll have some protection.

Today’s Bull of the Day, LendingTree (TREE) is a stock with a strong underlying earnings trend. LendingTree, Inc., through its subsidiary, operates online consumer platform in the United States. It operates through three segments: Home, Consumer, and Insurance.

The company is coming off a big earnings beat, where earnings came in 79 cents better than expectations at $1.16. That was the second consecutive quarterly beat for the company and the 16^th quarter out of the last 17 quarters with a beat. That big beat prompted several analysts to up their earnings estimates for LendingTree. It’s the reason why LendingTree is now a Zacks Rank #1 (Strong Buy).

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Three analysts increased their earnings estimates for the current year. The bullish moves caused the Zacks Consensus Estimate to spike from $3.37 to $3.92. Next year’s number is slated to come in at $4.83. That means that forecasts now call for 22.88% growth this year and 23.32% next year. That’s on revenue growth of 11.85% this year and 5.68% next year.

A quick look at the Price, Consensus and EPS Surprise Chart tells the turnaround story for LendingTree. This stock tumbled throughout 2021 and 2022. It wasn’t until earnings stabilized in late 2023 that the stock was able to find its bearings and tick up higher.

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This article originally published on Zacks Investment Research (zacks.com).

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