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Bear of the Day: LendingClub (LC)

The market is heating up here at the end of the summer. It’s bringing back confidence to some investors. Let’s just not get ahead of ourselves. Remember what wins in the long run. Stocks with the strongest earnings trends are likely to return the most over time. The reason is really quite simple, make money and you make money for investors.

Today’s Bear of the Day is a stock that has struggled to establish a strong earnings trend. I’m talking about Zacks Rank #5 (Strong Sell) LendingClub LC. LendingClub Corporation, operates as a bank holding company for LendingClub Bank, National Association that provides range of financial products and services through a technology-driven platform in the United States. The company provides commercial and industrial, commercial real estate, small business, and equipment loans, as well as leases equipment; and unsecured personal and auto, patient finance, and education finance loans. It also operates an online lending marketplace platform that connects borrowers and investors.

The reason for the unfavorable Zacks Rank is the series of earnings estimate cuts coming from analysts. Over the last week alone, three analysts have cut their estimates for the current year and next year. The bearish sentiment has dropped our Zacks Consensus Estimate for the current year from $1.58 to $1.50 while next year’s number is off from $2.15 to $1.68.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

LendingClub is in the Financial – Miscellaneous Services Industry which ranks in the Bottom 24% of our Zacks Industry Rank. There are some stocks which are in the good graces of our Zacks Rank within that industry. These include Zacks Rank #1 (Strong Buy) StoneX Group SNEX and Zacks Rank #2 (Buy) Oaktree Specialty Lending OCSL.

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LendingClub Corporation (LC) : Free Stock Analysis Report
Oaktree Specialty Lending Corp. (OCSL) : Free Stock Analysis Report
StoneX Group Inc. (SNEX) : Free Stock Analysis Report
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