NewtekOne (NEWT – Free Report) shares rallied 7.2% in the last trading session to close at $10.53. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 18.5% loss over the past four weeks.
NewtekOne experienced a price rise following the Trump administration’s announcement of a temporary halt of 90 days on reciprocal tariffs for most countries. Recently, the company reported strong preliminary loan and deposit metrics in the first quarter of 2025. NEWT originated 580 SBA 7(a) loans totaling $213 million, with SBA 7(a) loans held for investment rising 7% from the level as of Dec. 31, 2024.
Commercial Real Estate (CRE) and Commercial & Industrial loans reached $231 million and $51 million, respectively, with CRE growing 20% sequentially. SBA 504 loan originations hit $17 million, Alternative Loan Program loans were $68.5 million and deposits grew 2% from the 2024-end level to $1.1 billion. The company reaffirmed 2025 EPS guidance of $2.10–$2.50, citing strong loan and deposit growth, supported by its tech platform NewTracker, which generates 600–900 daily referrals.
This provider of financial and business services to small-and medium-sized business is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of -10.5%. Revenues are expected to be $64.67 million, up 11% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For NewtekOne, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock’s price usually doesn’t keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on NEWT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
NewtekOne is part of the Zacks Financial – Miscellaneous Services industry. Lument Finance (LFT – Free Report) , another stock in the same industry, closed the last trading session 4.7% higher at $2.44. LFT has returned -13.1% in the past month.
Lument’s consensus EPS estimate for the upcoming report has changed -19.1% over the past month to $0.10. Compared to the company’s year-ago EPS, this represents a change of -33.3%. Lument currently boasts a Zacks Rank of #4 (Sell).
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