In the latest trading session, LendingClub (LC) closed at $14.71, marking a +0.48% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.72%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq gained 0.33%.
Coming into today, shares of the company that connects borrowers and lenders online had lost 16.01% in the past month. In that same time, the Finance sector lost 8.39%, while the S&P 500 lost 6.24%.
LendingClub will be looking to display strength as it nears its next earnings release. In that report, analysts expect LendingClub to post earnings of $0.25 per share. This would mark year-over-year growth of 151.02%. Meanwhile, our latest consensus estimate is calling for revenue of $262.27 million, up 147.8% from the prior-year quarter.
LC's full-year Zacks Consensus Estimates are calling for earnings of $1.39 per share and revenue of $1.16 billion. These results would represent year-over-year changes of +672.22% and +42.22%, respectively.
It is also important to note the recent changes to analyst estimates for LendingClub. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 9.74% lower within the past month. LendingClub currently has a Zacks Rank of #3 (Hold).
Investors should also note LendingClub's current valuation metrics, including its Forward P/E ratio of 10.53. This represents a discount compared to its industry's average Forward P/E of 10.87.
The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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