The best Small Cap fintech stock to buy under $20
The post The best Small Cap fintech stock to buy under $20 appeared on BitcoinEthereumNews.com. Key points LendingClub stock soared some 19% Thursday after strong Q3 earnings. This fintech stock has some key advantages and a significant growth catalyst. Wall Street analysts are bullish on LendingClub stock. This online lender is up 70% YTD and just delivered strong Q3 earnings. LendingClub (NYSE: LC) stock has been on a tear this year, rising some 70% year-to-date, including a 19% jump on Thursday after the company released exceptional third quarter earnings. The online bank and lender generated $201.9 million in revenue in the third quarter, up about 1% year over year and ahead of estimates. Net income rose 190% from $5 million to $14.5 million, or 13 cents per share. This crushed estimates of 7 cents per share. This small cap fintech has some catalysts that could continue to drive further gains. Trading at almost $15 per share, it is one of the best options among fintech stocks under $20 per share right now. Bucking the trends While many nonbank fintech lenders have struggled under the weight of high interest rates eating into interest income, LendingClub has largely been able to navigate these challenges. One of the key advantages that LendingClub has is that it actually has a banking license, from its acquisition of Radius Bank in 2021. As a licensed bank, it is allowed to take deposits and make loans without using third party banks, unlike most of its competitors. The problem for many of LendingClub’s nonbank competitors is that the high interest rate environment caused banking partners to pull back from their platforms, as the high rates made the loans less profitable. But because LendingClub has its own deposit and lending franchise, it was able to remain profitable during this period. It has also been more efficient, streamlining expenses. These trends were evident in…
The post The best Small Cap fintech stock to buy under $20 appeared on BitcoinEthereumNews.com.
Key points LendingClub stock soared some 19% Thursday after strong Q3 earnings. This fintech stock has some key advantages and a significant growth catalyst. Wall Street analysts are bullish on LendingClub stock. This online lender is up 70% YTD and just delivered strong Q3 earnings. LendingClub (NYSE: LC) stock has been on a tear this year, rising some 70% year-to-date, including a 19% jump on Thursday after the company released exceptional third quarter earnings. The online bank and lender generated $201.9 million in revenue in the third quarter, up about 1% year over year and ahead of estimates. Net income rose 190% from $5 million to $14.5 million, or 13 cents per share. This crushed estimates of 7 cents per share. This small cap fintech has some catalysts that could continue to drive further gains. Trading at almost $15 per share, it is one of the best options among fintech stocks under $20 per share right now. Bucking the trends While many nonbank fintech lenders have struggled under the weight of high interest rates eating into interest income, LendingClub has largely been able to navigate these challenges. One of the key advantages that LendingClub has is that it actually has a banking license, from its acquisition of Radius Bank in 2021. As a licensed bank, it is allowed to take deposits and make loans without using third party banks, unlike most of its competitors. The problem for many of LendingClub’s nonbank competitors is that the high interest rate environment caused banking partners to pull back from their platforms, as the high rates made the loans less profitable. But because LendingClub has its own deposit and lending franchise, it was able to remain profitable during this period. It has also been more efficient, streamlining expenses. These trends were evident in…
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