This Left-for-Dead Fintech Is Up 73% This Month, and It May Just Be Getting Started
One would be hard-pressed to find a more hated stock on Wall Street than LendingClub (NYSE: LC). Conceived as a two-sided marketplace for personal loans, the company has been disdained by investors ever since a May 2016 scandal in which management was caught fudging investor requirements to move more loans, and its portfolio of personal loans began to show more credit losses.
After a few years in the wilderness, new management under CEO Scott Sanborn has done just about everything right. LendingClub tightened credit, grew and diversified its loan investor base, and cut costs, making the company more resilient to a potential downturn. Unfortunately, just as it looked like the company was recovering, the pandemic hit, and LendingClub shares once again plummeted to new lows.
But following the release of the company's third-quarter earnings report -- and news that effective COVID-19 vaccines have been developed -- the stock has rocketed up 73% in November alone. Here's why LendingClub shot higher, and why this month's move may be just the beginning.
Source Fool.com
