NerdWallet Shows Strong Growth Potential

Photo of author
Written By Elizabeth Monroe

NerdWallet Inc., trading under the ticker NRDS on the NASDAQ, has garnered attention for its strong growth potential amidst a competitive landscape in financial services. While the stock has surged over 40% year-over-year, it still remains below its IPO price, prompting scrutiny into its future growth prospects and market valuation.

Founded in 2009, NerdWallet initially gained traction as a leading financial advice platform, offering unbiased insights and product comparisons to consumers.

Over the years, it has evolved into a vertically integrated company that not only provides educational content but also monetizes user traffic through affiliate marketing, linking users to suitable financial products.

Strategic Acquisitions Driving Growth

Credits: DepositPhotos

A pivotal aspect of NerdWallet’s growth strategy has been its strategic acquisitions. Key among these are Fundera and Barrelhead, both aimed at further expanding its market reach and enhancing service offerings.

  • Fundera Acquisition: Acquired in 2020, Fundera specializes in comparing various loan products for small businesses. This acquisition has significantly boosted NerdWallet’s revenue from the small business segment, reportedly tripling it since integration.
  • Barrelhead Acquisition: Similar to Fundera, Barrelhead focuses on personal loan comparisons. The acquisition has doubled NerdWallet’s match rate through improved technology and data-driven customer experiences.

Financial Performance and Market Sentiment

NerdWallet reported strong first-quarter financial results, surpassing revenue expectations by $4.6 million and meeting earnings-per-share forecasts. Despite occasional misses in earnings, particularly related to profitability metrics, the company’s revenue growth in SMB (Small and Medium-sized Business) products underscores its robust market position and growth potential.

The company’s substantial investments in Research & Development (R&D) and marketing signify its commitment to expanding market share and enhancing technological capabilities, despite impacting short-term profitability.

Valuation and Analysts’ View

NerdWallet’s stock is currently viewed as undervalued compared to its peers, supported by attractive valuation metrics:

  • Price-to-Sales Ratio: Currently at 1.85x, indicating potential upside for growth-oriented investors.
  • Forward EV/EBITDA Ratio: Stands at 8.56x, reflecting favorable expectations relative to industry peers.

Wall Street analysts have issued positive ratings, with a consensus price target of $18.33 per share, suggesting approximately 30% upside potential from current trading levels.

Risks and Considerations

While NerdWallet presents significant growth opportunities, it faces several risks that investors should consider:

  • Profitability Challenges: The company has struggled to maintain consistent profitability, with high operating expenses attributed to R&D and marketing.
  • Market Volatility: NerdWallet’s stock exhibits high volatility, as indicated by its standard deviation and negative Sharpe Ratio, implying potential risks from market fluctuations.

Compelling Growth Opportunity

NerdWallet Inc. stands out as a compelling growth opportunity within the financial services sector, driven by its integrated platform, strategic acquisitions, and aggressive investment in technology and marketing.

Despite challenges in profitability and market volatility, analysts’ bullish outlook and favorable valuation metrics underscore the company’s potential for substantial upside in the coming quarters.

Attractive Proposition for Investors

Credits: DepositPhotos

Investors looking for exposure to a growth-oriented financial services company may find NerdWallet an attractive proposition, given its strategic positioning and strong market fundamentals.

However, prudent consideration of risks and market conditions is advised before making investment decisions relative to NRDS stock.



You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at; the Financial Industry Regulatory Authority (the "FINRA") at, and relevant State Securities Administrator website and the OTC Markets website at The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: and

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.