The next financial stock to take off may not come from Wall Street. Unlike Wells Fargo or Goldman Sachs, LendingTree (TREE) seems poised to take a major leap forward with strong fundamentals. Fortune just ran an in depth story on the e-finance company and offers investors some great insight into what is driving the company forward.
“Despite a sluggish U.S. economy and stagnant loan market, LendingTree’s revenue jumped 62% in the first half of 2017 vs. the year before. The company’s revenues from connecting customers with competing mortgage lenders—which accounts for just under half of its business—grew by 28% in the first six months of 2017 despite a 4.2% overall decline in U.S. mortgage originations. And LendingTree’s fees from non-mortgage products—franchises encompassing personal loans, credit cards, and home equity—fared even better, rocketing up 112%.”
“Such explosive growth has propelled LendingTree’s stock into the stratosphere. As of late August, its shares had soared 120% this year, to $223. Since going public in 2008, LendingTree (tree) has multiplied shareholders’ money 30 times, delivering annual returns of 47%. Its nine-year record ranks third among all companies with market caps that now exceed $2 billion, trailing most notably the 50.1% annual gains at Netflix.”
Such massive growth shouldn’t be ignored by any investor. Add to those numbers that the online economy is constantly expanding and has limitless potential, the company should see that growth continue.
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