Trade-Ideas LLC identified

LendingClub

(

LC

) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified LendingClub as such a stock due to the following factors:

  • LC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $151.0 million.
  • LC traded 871,099 shares today in the pre-market hours as of 7:26 AM.
  • LC is down 13.7% today from Friday's close.

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More details on LC:

LendingClub Corporation, together with its subsidiaries, operates as an online marketplace that connects borrowers and investors in the United States. Currently there are 2 analysts that rate LendingClub a buy, 3 analysts rate it a sell, and 5 rate it a hold.

The average volume for LendingClub has been 10.6 million shares per day over the past 30 days. LendingClub has a market cap of $1.4 billion and is part of the financial sector and financial services industry. Shares are down 68.2% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates LendingClub as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from the ratings report include:

  • LC's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 78.09%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • The gross profit margin for LENDINGCLUB CORP is currently extremely low, coming in at 6.75%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 2.73% significantly trails the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Consumer Finance industry and the overall market, LENDINGCLUB CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • LC, with its decline in revenue, underperformed when compared the industry average of 3.5%. Since the same quarter one year prior, revenues fell by 22.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • LENDINGCLUB CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, LENDINGCLUB CORP continued to lose money by earning -$0.02 versus -$0.08 in the prior year. This year, the market expects an improvement in earnings ($0.23 versus -$0.02).

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