LendingTree, Inc. TREE soared more than 11% after the company revealed that it has added American Express Company AXP in its credit card marketplace. The stock of this Charlotte, NC-based company closed the session at $102.74, reflecting a whopping rise of around 112% year to date.
The latest move by LendingTree comes in line with its strategy to expand its credit card operations. Notably, with the addition of American Express, LendingTree’s offering now covers all five leading credit card companies.
Doug Lebda, founder and CEO of LendingTree mentioned "In addition to adding new lenders and card offerings, our recent technology enhancements have improved our product significantly. As we continue to leverage the LendingTree brand in our marketing, we expect credit cards to be a significant contributor to our ongoing growth.”
The company anticipates revenue from its credit card business to increase over two fold sequentially in fourth-quarter 2015. Notably, third quarter revenue from the business stood at $2.7 million.
LendingTree, one of the major online loan marketplaces, allows consumers to comparison-shop across the full suite of loan and credit-based offerings. The company has been performing well, driven by solid revenue growth from its mortgage as well as non-mortgage products. In fact, backed by its encouraging performance, this Zacks Rank #1 (Strong Buy) company recently raised the full-year 2015 guidance and expects to witness continued growth going into the next year.
Notably, in third quarter 2015, the company reported a 69% year-over-year increase in its total revenues to $69.8 million. The quarter witnessed a 100% year-over-year rise in adjusted net Income to $9.8 million.
We believe with similar deals, the company will be able to keep its growth momentum alive.
For global electronic payment processor, American Express, the move reflects an effort to tap opportunities from LendingTree’s growing credit card marketplace.
Apart from LendingTree, a couple of other top-ranked stocks in the finance space include Enterprise Financial Services Corp. EFSC and Middlefield Banc Corp. MBCN, each sporting a Zacks Rank #1 (Strong Buy).
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