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LendingTree Hits 52-Week High: What's Driving the Surge?
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Key Takeaways
LendingTree shares surged 70.1% in a year, hitting a 52-week high of $73.26 before closing at $71.81.
Insurance segment growth and expanded consumer offerings like WinCard boosted TREE's momentum.
Cost controls, high ROE, and diversification beyond mortgages support LendingTree's profitability outlook.
Shares of LendingTree, Inc. (TREE - Free Report) hit a 52-week high of $73.26 on Friday, before ending the day slightly lower at $71.81.
The stock has surged 70.1% over the past year, surpassing the industry’s 30.8% growth. Further, TREE has also outpaced peers, Rocket Companies (RKT - Free Report) and Onity Group Inc. (ONIT - Free Report) during the same period.
Price Performance
Image Source: Zacks Investment Research
Can the TREE stock gain further momentum even after reaching a 52-week high? Let’s explore the possibilities.
What’s Fueling LendingTree’s Rally?
Revenue Growth Driven by Insurance Segment: One of the major contributors to LendingTree’s strong performance has been the consistent growth of its insurance segment. Revenues in this segment have recorded a four-year (ended 2024) CAGR of 13.4%, with the positive trend continuing into the first half of 2025. This growth has been driven by the company’s strategic push to expand wallet share among lending partners and a more favorable credit environment.
Additionally, TREE plans to expand its product offerings for consumers, small businesses, and network partners through its online marketplace. Thus, expansion not only diversifies its revenue sources but also enhances long-term profitability prospects.
Diversification Beyond Mortgage Products: TREE has made strategic progress in reducing its dependence on mortgage-related products by expanding into other areas. The company has actively grown its Consumer segment by adding services such as credit cards, auto loans, personal loans, student loans, and small business financing.
In February 2023, LendingTree launched its first branded consumer credit offering, the LendingTree WinCard, in partnership with Upgrade, further boosting its non-mortgage portfolio. Complementing these efforts, initiatives such as SPRING (previously MyLendingTree) and TreeQual have been designed to improve customer engagement and cross-selling opportunities. These moves help the company to strengthen its marketplace platform and drive sustainable revenue growth.
Effective Expense Management: On the expense side, the company has demonstrated strong cost-control discipline over recent years. Between 2020 and 2024, its cost base witnessed a negative CAGR of 1.2%, primarily due to headcount reductions and the elimination of low-profit business lines.
Expense Trend
Image Source: Zacks Investment Research
While expenses did rise on a year-over-year basis in the first half of 2025, management’s continued focus on cost-containment initiatives is expected to provide benefits going forward. These actions would help to mitigate margin pressures and support bottom-line growth in the upcoming periods.
Favorable Return on Equity (ROE): LendingTree’s robust ROE further underscores its operational efficiency. For the trailing 12 months, the company reported a ROE of 25.79%, which is significantly higher than the industry average of 2.07%. This indicates the company’s ability to efficiently utilize shareholders’ funds and deliver attractive returns, reinforcing confidence in its long-term growth trajectory.
ROE Growth Trend
Image Source: Zacks Investment Research
Meanwhile, the ROE of TREE’s peers, Rocket Companies and Onity Group, are 3.18% and 18.99%, respectively.
What Could Weigh on TREE’s Growth?
Weak Liquidity Profile: The company’s weak liquidity levels remain a concern. As of June 30, 2025, the company reported cash and equivalents of $149.1 million with $385.1 million in long-term debt. The significant leverage raises questions about its financial flexibility, particularly in the event of adverse market conditions.
Capital Distributions Appear Unsustainable: LendingTree’s shareholder return strategy faces challenges. Although the company has historically conducted share repurchases, its limited cash and high debt levels make sustaining these programs difficult. The board previously approved repurchase authorization of $100 million in February 2018 and $150 million in February 2019, reflecting a commitment to returning capital.
However, no shares were repurchased in the first quarter of 2025, leaving $96.7 million in authorization unused as of June 30, 2025. With constrained liquidity, uneven quarterly performance, and a high debt-to-equity ratio, continuing share repurchases could strain financial flexibility.
Should You Buy TREE Stock Now?
The company’s 12-month trailing price to book (P/B) ratio of 8.28X is above the industry’s 6.88X. This indicates that its shares are trading at a premium.
Price-to-Book TTM
Image Source: Zacks Investment Research
Notably, Rocket Companies has a trailing P/B ratio of 5.44X while Onity Group is trading at 0.7X.
Over the past month, the Zacks Consensus Estimate for TREE’s 2025 and 2026 earnings has remained unchanged at $4.37 per share and $4.70 per share, respectively.
Estimate Revision Trend
Image Source: Zacks Investment Research
The projected figures imply a year-over-year rise of 36.99% and 7.49% for 2025 and 2026, respectively.
Notably, a weak liquidity profile, a high debt-to-equity ratio and a potentially unsustainable capital distribution plan are major headwinds for TREE, which make us apprehensive about the stock. Its premium valuation compared with the industry could also limit short-term upside.
Nevertheless, LendingTree’s strong revenue growth, driven by the Insurance and Consumer segments, remains impressive. Its initiatives, such as SPRING, TreeQual, and the WinCard, enhance cross-selling opportunities, further boosting profitability potential.
Thus, despite some financial constraints, TREE’s strong fundamentals, growth initiatives, and market positioning make it an attractive investment option right now. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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LendingTree Hits 52-Week High: What's Driving the Surge?
Key Takeaways
Shares of LendingTree, Inc. (TREE - Free Report) hit a 52-week high of $73.26 on Friday, before ending the day slightly lower at $71.81.
The stock has surged 70.1% over the past year, surpassing the industry’s 30.8% growth. Further, TREE has also outpaced peers, Rocket Companies (RKT - Free Report) and Onity Group Inc. (ONIT - Free Report) during the same period.
Price Performance
Image Source: Zacks Investment Research
Can the TREE stock gain further momentum even after reaching a 52-week high? Let’s explore the possibilities.
What’s Fueling LendingTree’s Rally?
Revenue Growth Driven by Insurance Segment: One of the major contributors to LendingTree’s strong performance has been the consistent growth of its insurance segment. Revenues in this segment have recorded a four-year (ended 2024) CAGR of 13.4%, with the positive trend continuing into the first half of 2025. This growth has been driven by the company’s strategic push to expand wallet share among lending partners and a more favorable credit environment.
Additionally, TREE plans to expand its product offerings for consumers, small businesses, and network partners through its online marketplace. Thus, expansion not only diversifies its revenue sources but also enhances long-term profitability prospects.
Diversification Beyond Mortgage Products: TREE has made strategic progress in reducing its dependence on mortgage-related products by expanding into other areas. The company has actively grown its Consumer segment by adding services such as credit cards, auto loans, personal loans, student loans, and small business financing.
In February 2023, LendingTree launched its first branded consumer credit offering, the LendingTree WinCard, in partnership with Upgrade, further boosting its non-mortgage portfolio. Complementing these efforts, initiatives such as SPRING (previously MyLendingTree) and TreeQual have been designed to improve customer engagement and cross-selling opportunities. These moves help the company to strengthen its marketplace platform and drive sustainable revenue growth.
Effective Expense Management: On the expense side, the company has demonstrated strong cost-control discipline over recent years. Between 2020 and 2024, its cost base witnessed a negative CAGR of 1.2%, primarily due to headcount reductions and the elimination of low-profit business lines.
Expense Trend
Image Source: Zacks Investment Research
While expenses did rise on a year-over-year basis in the first half of 2025, management’s continued focus on cost-containment initiatives is expected to provide benefits going forward. These actions would help to mitigate margin pressures and support bottom-line growth in the upcoming periods.
Favorable Return on Equity (ROE): LendingTree’s robust ROE further underscores its operational efficiency. For the trailing 12 months, the company reported a ROE of 25.79%, which is significantly higher than the industry average of 2.07%. This indicates the company’s ability to efficiently utilize shareholders’ funds and deliver attractive returns, reinforcing confidence in its long-term growth trajectory.
ROE Growth Trend
Image Source: Zacks Investment Research
Meanwhile, the ROE of TREE’s peers, Rocket Companies and Onity Group, are 3.18% and 18.99%, respectively.
What Could Weigh on TREE’s Growth?
Weak Liquidity Profile: The company’s weak liquidity levels remain a concern. As of June 30, 2025, the company reported cash and equivalents of $149.1 million with $385.1 million in long-term debt. The significant leverage raises questions about its financial flexibility, particularly in the event of adverse market conditions.
Capital Distributions Appear Unsustainable: LendingTree’s shareholder return strategy faces challenges. Although the company has historically conducted share repurchases, its limited cash and high debt levels make sustaining these programs difficult. The board previously approved repurchase authorization of $100 million in February 2018 and $150 million in February 2019, reflecting a commitment to returning capital.
However, no shares were repurchased in the first quarter of 2025, leaving $96.7 million in authorization unused as of June 30, 2025. With constrained liquidity, uneven quarterly performance, and a high debt-to-equity ratio, continuing share repurchases could strain financial flexibility.
Should You Buy TREE Stock Now?
The company’s 12-month trailing price to book (P/B) ratio of 8.28X is above the industry’s 6.88X. This indicates that its shares are trading at a premium.
Price-to-Book TTM
Image Source: Zacks Investment Research
Notably, Rocket Companies has a trailing P/B ratio of 5.44X while Onity Group is trading at 0.7X.
Over the past month, the Zacks Consensus Estimate for TREE’s 2025 and 2026 earnings has remained unchanged at $4.37 per share and $4.70 per share, respectively.
Estimate Revision Trend
Image Source: Zacks Investment Research
The projected figures imply a year-over-year rise of 36.99% and 7.49% for 2025 and 2026, respectively.
Notably, a weak liquidity profile, a high debt-to-equity ratio and a potentially unsustainable capital distribution plan are major headwinds for TREE, which make us apprehensive about the stock. Its premium valuation compared with the industry could also limit short-term upside.
Nevertheless, LendingTree’s strong revenue growth, driven by the Insurance and Consumer segments, remains impressive. Its initiatives, such as SPRING, TreeQual, and the WinCard, enhance cross-selling opportunities, further boosting profitability potential.
Thus, despite some financial constraints, TREE’s strong fundamentals, growth initiatives, and market positioning make it an attractive investment option right now. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.