Tree.com (TREE) Jumps 8.0%: Does the Stock Have More Room to Rise?

Tree.com Shares Surge After Reverse Stock Split

Tree.com (NASDAQ: TREE) saw its stock price jump by 8% in the most recent trading session, closing at $38.32. This uptick was accompanied by unusually high trading volume, a stark contrast to the stock’s 38.7% decline over the past month.

The rally followed the company’s completion of a 1-for-10 reverse stock split, a strategic move intended to maintain its stock exchange listing and attract more institutional investors. Tree.com is also shifting its focus toward more profitable areas such as credit cards and personal loans, aiming to boost both profitability and operational efficiency. The company’s outlook has been further supported by a recent drop in mortgage rates, which have reached their lowest point in over three years. Lower borrowing costs are expected to stimulate both home buying and refinancing, potentially increasing loan inquiries and benefiting Tree.com’s revenue prospects.

Upcoming Earnings Expectations

Tree.com is projected to report quarterly earnings of $0.90 per share, reflecting a 22.4% decrease compared to the same period last year. Revenue is anticipated to reach $286.75 million, representing a 9.7% increase year-over-year.

While earnings and revenue forecasts provide insight into a company’s potential, research indicates that changes in analysts’ earnings estimates are closely linked to short-term stock price movements.

Currently, the consensus estimate for Tree.com’s earnings per share has remained steady over the past month. Without upward revisions in these estimates, sustained stock price gains may be limited. Investors should monitor TREE closely to see if the recent momentum continues.

At present, Tree.com holds a Zacks Rank #3 (Hold).

Industry Peers: loanDepot Performance

Tree.com operates within the Zacks Financial – Mortgage & Related Services sector. Another company in this space, loanDepot (NYSE: LDI), ended the last session up 4.2% at $1.98, though it has declined 19.8% over the past month.

loanDepot’s consensus earnings estimate for the upcoming quarter has held steady at -$0.04 over the past month. This marks an 82.6% improvement compared to the same period last year. loanDepot also carries a Zacks Rank #3 (Hold).

Zacks’ Top Stock Picks for Potential Growth

Zacks’ research team has identified five stocks with the potential to double in value in the coming months. Among these, Director of Research Sheraz Mian highlights one standout pick—a lesser-known satellite communications company. With the space industry expected to reach a trillion-dollar valuation and a rapidly expanding customer base, analysts predict a significant revenue surge for this firm in 2025. While not every top pick achieves outsized gains, this company could outperform previous winners such as Hims & Hers Health, which soared over 200%.