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

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LendingClub (LC - Free Report) closed the most recent trading day at $24.11, moving -1.31% from the previous trading session. This change lagged the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Coming into today, shares of the company that connects borrowers and lenders online had gained 2.35% in the past month. In that same time, the Finance sector gained 5.73%, while the S&P 500 gained 0.22%.

Investors will be hoping for strength from LendingClub as it approaches its next earnings release, which is expected to be January 26, 2022. The company is expected to report EPS of $0.21, up 187.5% from the prior-year quarter. 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. Recent revisions tend to reflect the latest near-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 13.82% higher. LendingClub currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, LendingClub is holding a Forward P/E ratio of 14.12. This valuation marks a premium compared to its industry's average Forward P/E of 12.63.

The Financial - Miscellaneous Services industry is part of the Finance sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% 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.

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