NerdWallet: Promising Opportunity With LLM Traffic And New Low Prime Customers
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OA Research508 FollowersFollow5ShareSavePlay(10min)CommentsSummaryNerdWallet remains undervalued despite a recent 30% rally, with strong Q3 revenue and earnings beats supporting continued bullishness.NRDS is expanding into below-prime consumer segments and leveraging AI-driven LLM traffic, offsetting organic search headwinds and broadening its addressable market.Q3 saw revenue rise 12% YoY to $215M, with significant margin expansion from cost reductions and ongoing share buybacks, reinforcing financial discipline.With a P/S of 1.38, below sector and historical averages, and positive analyst price targets, NRDS offers compelling long-term upside for patient investors.
Images By Tang Ming Tung/DigitalVision via Getty Images Since my last article, NerdWallet (NRDS) has risen by over 30% as the company posted an earnings and revenue beat in Q3. Despite the beat, NerdWallet is still underperforming the broader YTD. IThis article was written byOA Research508 FollowersFollowI'm a financial consultant and lifelong investor. I like to focus on long-term and am particularly fond of founder-led businesses with growth potential.Analyst’s Disclosure:I/we have a beneficial long position in the shares of NRDS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.