Bull of the Day: NerdWallet (NRDS)

NerdWallet (NRDS) is a Zacks Rank #1 (Strong Buy) stock that operates a personal finance comparison and education platform. The company helps consumers make smarter financial decisions by providing reviews, tools, and side by side comparisons across credit cards, banking, loans, insurance, and investing products.

The stock has shown renewed bullish momentum since delivering an earnings beat in November, and the recent pullback appears more like a healthy consolidation than a trend reversal.

Zooming out, the multiyear sideways pattern that has capped shares since 2022 is beginning to look like a base, setting the stage for a potential upside breakout in the year ahead.

About the Company

NerdWallet generates revenue primarily through affiliate and lead generation fees when users apply for financial products through its platform. The company operates a digital marketplace that provides financial guidance and product comparisons for consumers and small and mid-sized businesses across the United States, the United Kingdom, Australia, and Canada.

Its app and website cover categories such as credit cards, mortgages, insurance, personal and student loans, banking, investing, and SMB products. NerdWallet also supports its marketplace with educational content, tools, and calculators that drive engagement and repeat usage.

Founded in 2009 and based in San Francisco, the company employs roughly 650 people and has built a trusted brand that benefits from recurring traffic and long-term relationships with financial partners.

Zoom is valued at $1 billion and has a Froward PE of 22. The stock has Zacks Style Scores of “A” in Growth and Value, as well as a “B” in Momentum.

Q3 Earnings Beat

NerdWallet reported strong third-quarter results, significantly exceeding expectations with a 70% earnings surprise to the upside. GAAP earnings came in at $0.34 per share versus $0.20 expected, while revenue reached $215.1 million, beating the $193 million consensus. Adjusted EBITDA rose to $54.0 million, up from $37.3 million a year ago, with margins expanding to 25% from 19% y/y.

CEO Tim Chen highlighted that “performance marketing and operational efficiency gains in the past few quarters have set us up for long-term growth,” noting that the company’s trusted brand and distribution are driving lasting consumer relationships.

Looking ahead, NerdWallet guided Q4 revenue to $207–215 million, above the $195 million consensus, with adjusted EBITDA projected at $33–37 million. Full-year 2025 adjusted EBITDA was raised to $141–145 million. Banking revenue continues to surge, up 96% y/y, while personal loans grew 91% y/y.

Credit cards and SMB verticals faced headwinds from organic search, but new AI-driven LLM referrals have shown high conversion rates, signaling growth in high-intent traffic. Operational efficiency initiatives have expanded margins, and the company generated over $85 million in adjusted free cash flow over the past year.

Estimates Head Higher

Since reporting earnings, analysts have been raising estimates across all time frames.

For the current quarter, estimates have gone from $0.15 to $0.17 over the last 60 days. For next quarter, we see similar movement, going from $0.18 to $0.20.

For the current year, estimates have shot higher, going from $0.47 to $0.62, a jump of 32%.

Next year looks good as well, with estimates for going from $0.72 to $0.93, an increase of 29%.

NerdWallet, Inc. Price and Consensus

NerdWallet, Inc. price-consensus-chart | NerdWallet, Inc. Quote

With those estimates, analysts are lifting price targets as well. Barclays reiterated their Overweight rating, lifting their target to $17 from $14. Morgan Stanley reiterated their Equal Weight rating and raised their target to $14 from $12.

The Technical Take

The stock has been in a four-year trading range, with the $9-10 levels as support and the $15 area as resistance. After earnings the stock took out 2025 higher, but has recently found more selling.

The question for investors looking at the chart is if this time is different. Will smart money come into the name in 2026 and cause a real breakout? Given the earnings momentum, this seems like a real possibility, but the stock will need to get above $17 to confirm that breakout

For those looking to start a position before a breakout, some support levels are listed below:

50-day: $13.50

200-day: $11.15

That stock is currently trading at the 50-day, with the 200-day far below the earnings breakout price. The $12.50 level is Fibonacci support so the 12.50-13.50 area looks like a solid buy zone for investors looking to start a position for the new year.

In Summary

NerdWallet combines strong earnings momentum, a scalable digital platform, and a trusted consumer brand, positioning it for continued growth. With raised guidance, expanding margins, and analyst estimates trending higher, the stock looks poised to capitalize on its long-term growth trajectory.

For investors seeking a high-quality, growth-oriented opportunity heading into 2026, NRDS stands out as a compelling play.

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This article originally published on Zacks Investment Research (zacks.com).

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