Lendingtree (TREE) has been on my radar big time lately, and after a blowout at the beginning of August I am more bullish than ever on TREE stock.
It should be obvious why. Lendingtree stock is up 180% since January and up over 400% since last August!
And judging by the latest earnings numbers, TREE stock still has much more to run. Lending Tree reported record revenue, with sales up 31% over last year, and increased guidance for the rest of this year thanks to strong performance.
If you’re not familiar with Lendingtree, it’s kind of like a Priceline.com (
PCLN) but for borrowers looking for loans. TREE stock makes money as the middleman between consumers shopping around for a car loan or a mortgage, and banks who are competing for their business.
https://youtu.be/ChN8Iw1aYrs
It’s a win-win . Regular folks getting transparency the the peace of mind that comes with shopping around, lenders find new customers they wouldn’t have met otherwise and Lendingtree stock holders benefiting from a small fee that is made with each connection.
As I wrote previously, right before TREE stock gapped up about 30% on amazing earnings, this company is not some profitless internet company that is just a fad. Lendingtree is the real deal, trading as a public stock for about a decade and boasting a history of profitability.
Growth is great, as evidenced by the latest revenue growth. But equally compelling is the diversification as TREE continues to move away from a focus on mostly mortgages. Personal loans in particularly continue to be a bright spot, as evidenced by the nearly 400% growth year-over-year in this segment, and non-mortgage lending is now roughly a third of Lendingtree’s business.
TREE stock is admittedly a bit frothy after this report, but I really like what this company has to offer. You should, too.
Jeff Reeves is the editor of InvestorPlace.com and the author of . Write him at editor@investorplace.com or follow him on Twitter via . As of this writing, he did not hold a position in any of the aforementioned securities.
