LendingTree Aims To Boost Fee Income, Expenses Increase
Zacks Investment Research | Jun 20, 2019 08:16AM ET
LendingTree’s (NASDAQ:TREE) efforts to reduce dependence on mortgage-related source of revenues is a tailwind as demand for mortgage products has declined due to higher interest rates. Its inorganic strategies to grow bode well for the long term.
However, lower mortgage-related revenues might offset the top line to some extent. Also, significant rise in cost base due to investments in product development and advertising, remains a concern.
On account of these downsides, the company failed to impress analysts regarding its earnings growth potential, as reflected in 1.4% downward estimate revision of the Zacks Consensus Estimate for current-year earnings over the past 30 days. The stock currently carries a Zacks Rank #3 (Hold).
Nevertheless, its price performance seems impressive. Shares have rallied 21.2% over the past three months compared with 7.8% growth of the Zacks Investment Research
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