Trade-Ideas LLC identified

LendingTree

(

TREE

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified LendingTree as such a stock due to the following factors:

  • TREE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $59.1 million.
  • TREE has traded 154,161 shares today.
  • TREE is down 3.3% today.
  • TREE was up 23.4% yesterday.

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More details on TREE:

LendingTree, Inc., through its subsidiaries, operates an online loan marketplace for consumers seeking an array of loan types and other credit-based offerings in the United States. The company operates in four segments: Lending, Auto, Education, and Home Services. TREE has a PE ratio of 81. Currently there are 2 analysts that rate LendingTree a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Recommends

The average volume for LendingTree has been 320,400 shares per day over the past 30 days. LendingTree has a market cap of $1.1 billion and is part of the financial sector and real estate industry. The stock has a beta of 0.37 and a short float of 12.2% with 1.70 days to cover. Shares are up 102.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates LendingTree as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, compelling growth in net income, good cash flow from operations and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 10.0%. Since the same quarter one year prior, revenues rose by 30.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, LENDINGTREE INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income increased by 2004.0% when compared to the same quarter one year prior, rising from -$0.25 million to $4.72 million.
  • Net operating cash flow has significantly increased by 1975.73% to $9.59 million when compared to the same quarter last year. In addition, LENDINGTREE INC has also vastly surpassed the industry average cash flow growth rate of -139.24%.
  • LENDINGTREE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, LENDINGTREE INC's EPS of -$0.06 remained unchanged from the prior years' EPS of -$0.06. This year, the market expects an improvement in earnings ($1.92 versus -$0.06).

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