03. LendingClub Corporation (NYSE:LC)
Forward P/E ratio: 9.62
LendingClub Corporation (NYSE:LC) deserves a serious look from value investors hunting for opportunity under $20. With a forward P/E of just 9.62, a PEG ratio of 0.50, and a debt to equity ratio of 0.06 as of June 13, this fintech bank is not only undervalued by traditional metrics, it is also quietly outperforming in a tough macro environment.
LendingClub, originally known for peer to peer lending, now operates as a full fledged digital bank offering personal loans, auto refinancing, and deposit products like high yield savings and CDs. The Q1 2025 numbers prove this transformation is working. The company reported $218 million in revenue, a 20% increase year over year, and $74 million in pre provision net revenue, up a significant 52% over the prior year. Loan originations reached $2 billion, marking a 21% increase from Q1 2024. This growth is driven by smarter marketing strategies, improved underwriting discipline, and strong demand from both borrowers and loan investors.
What stands out is LendingClub Corporation (NYSE:LC) ability to consistently improve loan sales pricing, which increased by over 200 basis points from last year, while maintaining excellent credit quality. Delinquencies and charge offs have improved significantly, and the company continues to focus on higher quality borrowers. Even after increasing its credit provisions to prepare for potential economic challenges, the company’s core profitability remains solid.
LendingClub Corporation (NYSE:LC) is also expanding its technological advantage. Recent acquisitions, such as the AI powered Cushion app, are enhancing its mobile platform and enabling innovations like “Debt IQ” and “TopUp,” which deepen customer engagement and simplify loan management.
The bank’s net interest income hit an all time high of $150 million, supported by optimized deposit funding through the LevelUp Savings product and growth in interest earning assets. Operating leverage is becoming more evident, with revenue growth outpacing expenses, a clear sign of efficient scaling.
With a strong balance sheet, growing recurring revenues, and a tech forward strategy, LendingClub Corporation (NYSE:LC) looks ready to deliver long term value to investors. At under $20, it presents a compelling opportunity for growth at a bargain price.