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 $70.0 million.
  • TREE has traded 936,550 shares today.
  • TREE is down 3% today.
  • TREE was up 22.2% 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 4. Currently there are 6 analysts that rate LendingTree a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for LendingTree has been 724,700 shares per day over the past 30 days. LendingTree has a market cap of $807.1 million and is part of the financial sector and real estate industry. The stock has a beta of 1.41 and a short float of 30.1% with 2.28 days to cover. Shares are down 4.2% year-to-date as of the close of trading on Thursday.

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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, expanding profit margins, good cash flow from operations and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • TREE's very impressive revenue growth greatly exceeded the industry average of 15.2%. Since the same quarter one year prior, revenues leaped by 69.0%. 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. In comparison to the other companies in the Thrifts & Mortgage Finance industry and the overall market, LENDINGTREE INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
  • The gross profit margin for LENDINGTREE INC is currently very high, coming in at 96.51%. It has increased from the same quarter the previous year.
  • Net operating cash flow has significantly increased by 1019.85% to $15.43 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 -25.37%.
  • 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 1497.9% when compared to the same quarter one year prior, rising from $0.38 million to $6.09 million.

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