LendingTree Inc (NASDAQ:TREE) Combines Technical Momentum and High Growth Fundamentals

LendingTree Inc (NASDAQ:TREE) has become a notable candidate from a screening process that joins Mark Minervini’s Trend Template with a High Growth Momentum (HGM) rating. This two-step method finds stocks showing solid technical momentum along with firm fundamental growth traits, a system intended to find companies in strong uptrends with quickening business results. The method highlights stocks trading close to new highs with better earnings, revenue, and relative strength, matching Minervini’s idea of investing in market leaders during early bull runs.

Technical Strength: Meeting the Minervini Trend Template

LendingTree meets all main technical conditions listed in Minervini’s Trend Template, which is made to find stocks in clear Stage 2 uptrends:

• Price Above Key Moving Averages: The present price of $69.82 trades notably higher than the rising 50-day ($46.19), 150-day ($44.46), and 200-day ($43.83) simple moving averages. This order points to continued positive momentum across short, medium, and long-term periods.
• Moving Average Arrangement: The 50-day MA is above both the 150-day and 200-day MAs, and the 150-day MA is also above the 200-day MA. This rising, layered order of moving averages confirms a sound and set uptrend.
• Nearness to Highs and Lows: Shares are trading within 4% of their 52-week high of $70.72 and have gained over 108% from the 52-week low of $33.50. This shows solid bounce momentum and a lack of overhead resistance.
• Strong Relative Strength: With a ChartMill Relative Strength reading of 93.9, TREE does better than 94% of all stocks in our database, showing notable leadership in the wider market.

These technical features are important in Minervini’s structure because they help remove weaker stocks and concentrate only on those with clear momentum, little resistance, and institutional backing, elements that frequently come before continued price gains.

Fundamental Momentum: Qualifying as a High-Growth Candidate

Along with its technical strength, LendingTree shows notable fundamental speed, meeting the screen’s need for a lowest HGM rating of 4. Several measures highlight this growth profile:

• Earnings Increase: EPS growth on a trailing twelve-month (TTM) basis jumped 91.5%, while latest quarterly EPS growth sped up greatly, up 109.3% year-over-year in the newest quarter, after rises of 41.4% and 314.3% in the two quarters before. This sequence of growing profitability shows operational efficiency and rising demand.
• Revenue Growth: TTM revenue increased 51.6%, with recent quarterly sales rising 19.0%. The company has exceeded revenue estimates in two of the past four quarters, with an average beat of 2.1%.
• Estimate Changes: Analysts have increased their EPS estimates for next year by 5.2% over the past three months, showing rising positive feeling about LendingTree’s future profitability. Revenue estimates for next year were also raised by 4.8%.
• Profitability Directions: The profit margin in the last reported quarter was 3.54%, up from 2.87% two quarters earlier, hinting at better operational leverage.

These fundamentals are key in the Minervini method because earnings beats and positive changes often draw institutional attention, driving more price gains. Companies displaying quicker growth in sales, earnings, and margins are more apt to become “superperformers.”

Technical and Setup Assessment

Based on ChartMill’s own technical report, TREE gets a high technical rating of 9/10, showing very good trend condition, solid relative strength, and a place near new highs. Both short and long-term trends are good, and the stock is doing better than 84% of its peers in the Consumer Finance industry. However, the setup rating is now low (2/10), meaning the stock might be stretched after its recent rise and could gain from a pause period before giving a more favorable risk/reward entry.

Review the full technical report for TREE here.

Conclusion

LendingTree shows a notable case of a stock that fits both the technical strictness of Minervini’s trend-following structure and the fundamental push needed for high-growth investing. Its strong price trend, joined with solid earnings momentum and positive analyst changes, places it as a possible leader in the financial services sector. While the present stretched price action hints at waiting for a better entry, the basic technical and fundamental strengths make it a stock to monitor.

For investors wanting to find similar high-growth, technically good chances, more screening results are available through this link:
High Growth Momentum + Trend Template Screen

Disclaimer: This is not investment advice. All content is given for informational and educational reasons only. Please do your own research and think about talking to a financial advisor before making any investment choices.