LendingTree Outlook: A Weak Technical Picture Amid Strong Fund Flows

Market Snapshot

LendingTree (TREE.O) is in a weak technical position, but strong fund flows and positive fundamentals are providing mixed signals. The stock has seen a 15.60% price rise recently, yet technical indicators remain bearish with a low internal diagnostic score of 3.23.

News Highlights

Recent news includes several industry-related developments:

• Trump’s Tariff Announcements continue to stir market nerves, with implications for global trade and domestic industries. While LendingTree is not directly impacted, broader economic uncertainty could slow lending activity.
• White House Plans to Ease Bank Regulations may benefit large financial firms, potentially increasing competition for LendingTree’s lending services. The move could boost the broader sector but could also pressure margins.
• Corporate Insiders Selling Shares, such as Tenet Healthcare director James Bierman, may raise questions about insider sentiment. While LendingTree itself has not seen similar insider sales, such activity in related sectors can signal caution.

Analyst Views & Fundamentals

LendingTree is currently receiving a mix of bullish and cautious analyst ratings:

• Average rating score (simple mean): 4.67
• Weighted rating score (performance-weighted): 3.29
• Rating consistency: Low – Analysts are divided, with two "Strong Buy" and one "Buy" recommendation in the last 20 days.

These scores do not fully align with the recent 15.60% price rise, suggesting some analysts may be lagging or cautious despite strong price performance.

Key Fundamental Values:

• Net profit margin: 83.40% (Score: 8.30)
• Net income / Revenue: -140.46% (Score: 1.00)
• Cash-MV ratio: 40.37% (Score: 8.30)
• Profit-MV ratio: -108.24% (Score: 1.00)
• Asset-MV ratio: -51.78% (Score: 1.00)

The strong net profit margin and cash position are positives, but the negative net income and asset-MV ratios are concerning. The model scores reflect this duality, with some factors receiving high marks and others pulling the overall score down.

Money-Flow Trends

Big-money and retail flows are diverging slightly, but the overall trend is positive:

• Overall inflow ratio: 53.47% – A strong sign of inflows from large and institutional investors.
• Large and extra-large investors are showing positive trends, while small investors are in negative territory (48.12% and 51.09% inflow ratios for small and medium investors, respectively).
• Fund-flow score: 8.03 (excellent) – This indicates strong money-moving activity that supports the recent price rise.

Key Technical Signals

Technical indicators are painting a weak picture for LendingTree:

• RSI Overbought has an internal diagnostic score of 3.33, suggesting it’s not a strong bearish signal, though it warns of overbought conditions.
• WR Oversold has a score of 2.35, indicating some bullish potential but weak execution.
• 
  MACD Golden Cross has a very low score of 1.00, signaling a bearish bias despite the chart pattern.
• MACD Death Cross has a score of 6.23, indicating a bullish bias but historically weak returns.

Recent Chart Patterns

• 2025-12-24: MACD Golden Cross triggered – bearish bias confirmed.
• 2025-12-15: WR Oversold and MACD Death Cross – mixed signals.
• 2025-12-17: WR Oversold again, reinforcing bearish concerns.

Key Insight: The technical side is weak, and it is suggested to avoid the stock. Momentum is unclear, and bearish signals dominate (3 vs 0 bullish signals).

Conclusion

LendingTree is in a tricky spot—fundamentals and fund flows are positive, but technical indicators are bearish. With a fund-flow score of 8.03 and a fundamental score of 8.30, the stock has strong underlying value. However, its technical score of 3.23 and the weak signals from indicators like RSI and MACD Golden Cross suggest caution.

Actionable Takeaway: Consider waiting for a pull-back or a stronger breakout before entering long positions. Investors may want to monitor the stock’s technical setup for a clearer trend confirmation in the coming weeks.