Back to top

Image: Bigstock

LendingClub (LC) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, LendingClub (LC - Free Report) closed at $24.93, marking a +1.67% move from the previous day. This change outpaced the S&P 500's 0.28% gain on the day. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.14%.

Coming into today, shares of the company that connects borrowers and lenders online had lost 6.38% in the past month. In that same time, the Finance sector gained 4.89%, while the S&P 500 gained 0.12%.

Wall Street will be looking for positivity from LendingClub as it approaches its next earnings report date. This is expected to be January 26, 2022. In that report, analysts expect LendingClub to post earnings of $0.21 per share. This would mark year-over-year growth of 187.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $247.69 million, up 226.3% from the year-ago period.

It is also important to note the recent changes to analyst estimates for LendingClub. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Over the past month, the Zacks Consensus EPS estimate has moved 13.16% higher. LendingClub is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, LendingClub is holding a Forward P/E ratio of 14.26. Its industry sports an average Forward P/E of 12.31, so we one might conclude that LendingClub is trading at a premium comparatively.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 66, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow LC in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

LendingClub Corporation (LC) - free report >>

Published in