Today’s Research Reports on Stocks to Watch: Lending Tree and Fastenal
Lending Tree and Fastenal Company were both seeing gains in Wednesday’s trading session. Lending Tree released its Mortgage Offers Report for the month of June while Fastenal reported better than expected second quarter results.
RDI Initiates Coverage on:
LendingTree, Inc. shares closed up 7.28% on almost 440,000 shares traded on Wednesday. Yesterday the company released its monthly Mortgage Offers Report which analyzes data from actual loan terms offered to borrowers on LendingTree.com by lenders on LendingTree’s network. Last month best offers for borrowers with the best profiles (the 95th percentile of borrowers) had an average APR of 4.34% for conforming 30-year fixed purchase loans. This number was down from 4.36% in May. The report also said that for the average borrower, purchase APRs for conforming 30-year fixed loans offered on LendingTree’s platform were up 8 bps, to 5.00%. The loan note rate of 4.89% is the highest since March 2016 and was unchanged from May. The company’s Chief Economist and the writer of the report, Tendayi Kapfidze, stated, "Our monthly report continues to illustrate the impact a credit score can have on the cost of financial products. Homebuyers’ credit scores can allow them to be more competitive in a marketplace with limited inventory and heightened competition." The nation’s leading online loan marketplace will be releasing its fiscal second quarter 2018 results on Thursday, July 26, 2018.
Access RDI’s LendingTree, Inc. Research Report at:
Fastenal Company shares closed up about 10% yesterday on skyrocket trading volume of nearly 26 million shares. Average trading volume for the stock is around 2.8 million shares. The big move came after the company reported second quarter earnings that were better than expected. For the second quarter, the fastener distributor reported revenue of $1.27 billion, a 13.4% increase. Analysts had been waiting for around $1.257 billion. Net income at 74 cents was a growth of 42% and also beat what analysts were expecting by eight cents a share. Fastenal also said that it had signed 81 new on-site locations. In the year ago period this number was only 68. CEO Dan Florness stated during the earnings call, "I realize at this stage of the economic cycle, our industry is a bit out of favor. But however, I believe we have a great story to tell. And I believe our mote is expanding in the marketplace. Let’s start out by going to Holden’s flipbook. If I look at some of the highlights he called out, I’ll start with — it’d be probably good if I got on the right page. I’d start with our non-residential construction business is accelerating. In June, we hit 17%. In all honesty, I don’t understand the strength behind it. I know the things we’ve done to build momentum there. But I was very pleased with the progress we saw in the second quarter. Our manufacturing demand is stable at very healthy levels. We rolled that together. We grew our sales 13.1% in the second quarter. That’s our fifth straight quarter of double digit growth."
Access RDI’s Fastenal Company Research Report at:
Our Actionable Research on LendingTree, Inc. (NASDAQ: TREE) and Fastenal Company (NASDAQ: FAST) be downloaded free of charge at Research Driven Investing.
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