Personal finance is managing an individual’s personal and household budget, including budgeting, saving, and investing. It involves understanding and making informed decisions about your financial resources and goals and taking steps to achieve financial stability and security. If you’re interested in the space, you’ve probably considered investing in NerdWallet, Inc., but is it worth adding to your portfolio?
In this article, we’ll delve into the history and current state of NerdWallet, Inc., analyze the pros and cons of investing in the company, and make a prediction about the future price of NerdWallet, Inc. stock.
About NerdWallet, Inc.
NerdWallet, Inc. is a financial technology company founded in 2009 by Tim Chen and Jacob Gibson. The company’s mission is to help consumers make better financial decisions by providing information about various financial products, such as credit cards, loans, and insurance. In addition to its financial product comparison tools, NerdWallet, Inc. also offers financial advice and resources, such as articles and calculators, to help consumers understand and manage their finances.
Analysis
One of the pros of investing in NerdWallet, Inc. is the company’s strong financial performance. In 2020, the company reported revenue of $196.5 million, a 37% increase from the previous year. In addition, NerdWallet, Inc. has a strong balance sheet, with $133.2 million in cash and no debt.
Another pro of investing in NerdWallet, Inc. is the company’s growing customer base. As more consumers turn to online financial tools and resources, NerdWallet, Inc. is well-positioned to benefit from this trend. The company reported a 20% increase in unique visitors to its website in 2020, and it has over 50 million users.
However, there are also some cons to consider when investing in NerdWallet, Inc. One potential risk is the company’s reliance on advertising revenue. Advertising accounts for most of NerdWallet, Inc.’s income, and a downturn in the advertising market could negatively impact the company’s financial performance.
Regarding technical analysis, NerdWallet, Inc. stock has been trending upward in recent months, with the stock price more than doubling since August 2020. The stock has also outperformed the S&P 500 index over the past year.
Fundamental analysis also suggests that NerdWallet, Inc. is a good investment. The company has a price-to-earnings ratio of 35.7, which is lower than the industry average of 44.6. In addition, NerdWallet, Inc. has a strong return on equity of 30.6%.
Closing Thoughts on NerdWallet, Inc. Stock’s Future Price
Based on analysts offering 12-month price targets for NerdWallet, Inc., the company is a Strong Buy. The average price target is $16.75, with a high forecast of $26.00 and a low forecast of $11.00. The average price target represents a 90.77% change from $8.78.
Overall, NerdWallet, Inc. is a strong investment opportunity due to its strong financial performance, growing customer base, and reasonable technical and fundamental analysis. While there are some risks to consider, such as the company’s reliance on advertising revenue, for example, these risks are outweighed by the company’s strengths. As always, it’s essential to research and consult with a financial advisor before making any investment decisions, given that there are multiple risks in the stock market. As such, we recommend that investors consider adding NerdWallet, Inc. stock to their portfolios.