After Jumping More Than 50% Last Week, LendingClub Stock Still Looks Undervalued
It took longer than I thought it would, but after LendingClub (NYSE: LC) blew past all earnings expectations for the second quarter, the market could finally ignore the company no more. The digital marketplace bank's stock shot higher by more than 40% in after-hours trading on July 28 following the release of the Q2 report. Overall last week, LendingClub stock climbed by 54%.
In the month preceding July 28, the stock had fallen by more than 10%, and it seemed like the company's story simply wasn't resonating with investors. Now, even in the wake of its recent surge, I continue to believe LendingClub is undervalued.
It's understandable why LendingClub fell off the radar for many investors. Its CEO was ousted some five years ago in a scandal over loans, and that controversy and other issues with the business model continued to plague the company for some time. Further, onlookers might not have fully understood the company's plan when it announced it was acquiring the branchless Radius Bank in 2020 and becoming a licensed bank.
Source Fool.com
