Smart Money Ratings For 20 Most Undervalued Stocks

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5. LendingTree, Inc. (NASDAQ:TREE)

Insider Transaction: 2.53%

Upside Potential: 65.11%

Forward P/E: 17.48

Based in North Carolina, LendingTree, Inc. (NASDAQ:TREE) is a leading online marketplace for financial services. The company connects consumers with loan offers across mortgages, credit cards, and personal loans. Despite intense competition from Bankrate, Credit Karma, and similar players, LendingTree, Inc. (NASDAQ:TREE) generates revenue through lead generation and affiliate marketing. Its strategy involves platform diversification and expanding into insurance and small business lending verticals. Interest rate fluctuations, consumer credit demand, and macroeconomic conditions influence the company’s growth.

LendingTree, Inc. (NASDAQ:TREE) shows early signs of rebound, with its current prices standing at 8.54% from its 52-week low. Though the adjusted EBITDA for the first quarter of 2025 fell below the estimates, the company reported solid revenue growth. Despite facing macroeconomic challenges, the company’s insurance segment had an uptick of 71% year-over-year, marking significant growth in performance. Along with home equity lending, the small business and personal loan products have also been growing and are anticipated to generate record revenue in 2025.

With the forward P/E multiple at 17.48, LendingTree, Inc. (NASDAQ:TREE) may be underappreciated by the market. The company is exposed to moderate institutional interest, represented by 23 hedge funds having stakes in the company’s ownership. Analysts are highly optimistic, assigning a 65.11% upside to the stock, earning a position in the top 10 of our list.

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