LendingClub (LC) Soars 9.8%: Is Further Upside Left in the Stock?
LendingClub (LC) shares rallied 9.8% in the last trading session to close at $7.38. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 18.7% gain over the past four weeks.
The Federal Reserve signaled end of the current rate cycle and kept the interest rates unchanged at 22-year high of 5.25-5.5% at the end of two-day FOMC meeting. Further, the central bank indicated three interest rate cuts by 2024-end. Thus, funding costs for financial firms will likely come down and also, demand for loans will rise to some extent. Hence, the LC stock moved higher.
This company that connects borrowers and lenders online is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -84.2%. Revenues are expected to be $180.68 million, down 31.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For LendingClub, the consensus EPS estimate for the quarter has been revised 3.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
LendingClub is part of the Zacks Financial - Miscellaneous Services industry. Columbia Financial (CLBK), another stock in the same industry, closed the last trading session 5.6% higher at $19.30. CLBK has returned 2.4% in the past month.
Columbia Financial's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.07. Compared to the company's year-ago EPS, this represents a change of -66.7%. Columbia Financial currently boasts a Zacks Rank of #3 (Hold).
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LendingClub Corporation (LC) : Free Stock Analysis Report
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