Contributor, Benzinga
December 12, 2022

NerdWallet Inc. (NASDAQ: NRDS) helps people compare products, prices and services within finance. Researching products and services takes a lot of work. It's something few people like to invest their time in, and it can be challenging, particularly if you lack sufficient knowledge in a particular field.

This is where NerdWallet can be valuable. It is not there to provide financial advice, but it aids users in finding the best credit cards, CD rates, savings, checking accounts, scholarships, healthcare and airlines. 

Its tools are specifically tailored to answer customers' questions about money to help people make the best financial choices possible. 

NRDS Stock Price

Is it worthwhile to invest in NRDS? NerdWallet went public on the Nasdaq stock market in November 2021. The company raised net proceeds of $139.6 million at $18 per share. 

Since then, the stock initially rose above $30 per share before dropping. It has traded mostly sideways since and has yet to establish a bullish or bearish direction despite a rise in recent months, with the stock able to break and close above previous resistance levels. A growing level of optimism from analysts has been reflected in NerdWallet’s share price recently. 

In comparison to a similar stock such as LendingTree, NerdWallet shows positive signs. This year has been difficult for the stock market industry in which the companies operate, demonstrated through both NerdWallet and LendingTree’s share prices. However, NerdWallet has shown potential signs of recovery, whereas LendingTree has yet to show signs of a turnaround in its share price.

NRDS Stock Forecast

After a significant turnaround for the company, can NerdWallet continue to trend higher? The company recently reported earnings above the forecast, as its sales grew significantly. As a result, the stock swung to a net profit, and the company anticipates full-year EBITDA margin growth.

Investors can expect its strong earnings to continue if NerdWallet is able to generate higher customer engagement. An excellent way to assess NerdWallet’s potential performance is via online searches and analyzing where its articles rank on Google for key search terms in important areas it covers. The company makes money via affiliate commissions, meaning if someone clicks on a NerdWallet article and then an ad within that article and signs up to the platform, NerdWallet gets paid.

The current macroeconomic environment has caused financial difficulties across all economies and individuals. NerdWallet is expected to benefit in this economic climate as more customers look to save money and find the best services. However, it may cause advertisers to reduce spending, which is a risk. 

Even so, the company has provided stable earnings, and the current industry offers upside potential. 

NRDS Stock News

The company reported Q3 earnings on Nov. 2, 2022, which beat forecasts, while its full-year outlook remains positive. The Q3 report is a significant reason why the stock has gained considerably over the last month.

The company’s Chief Marketing Officer Kelly Gillease stepped down, effective October 1. 

Earlier this year, NerdWallet completed the acquisition of On The Barrelhead in an approximately $120 million deal. On The Barrelhead is a data-driven platform that provides consumers with credit-driven product recommendations. The acquisition will help consumers match to better financial products and make wiser money moves.

How to Buy NRDS Stock

If your current broker does not offer NRDS shares or you do not yet have a brokerage account, the following steps outline what you need to do.

Find a Brokerage

A broker is an intermediary between you and the stock exchange. If you wish to purchase NRDS shares, you instruct your broker to purchase a specific number of shares at your chosen price.

The transaction is carried out but usually comes with a service fee. This fee can vary depending on the broker. Therefore, it is essential to research costs and other aspects before setting up your account.

Decide how many shares you want to buy

Once a broker has been chosen, you will need to fund your account and decide how many shares to buy. Consider the amount of risk you want to take and the percentage of your account attributed to NRDS.

You can start with a small investment and add to it over time. Ensure you have considered which investment style to use before entering the market.

Choose your order type

At this stage, you decide how to execute your position. Different order types exist, but the primary two are market and limit orders.

Market orders mean you acquire the shares at a price dictated by the market. Using market orders results in a high chance your order will be filled. 

Limit orders mean that you decide the price you buy the stock at. You can determine what price you buy the shares at, but you face the risk that the order won’t be filled if the price doesn’t hit your predetermined level. 

Buy the shares

After these steps are complete, all that is left to do is to buy the shares. Once the trade ticket is opened and the required fields are complete, you click buy or submit (depending on the broker). Now, you can monitor your trade and other positions by navigating to the correct tab on your brokerage account.

Best Online Stock Brokers for NRDS Stock

Now that you know how to purchase shares of NRDS, certain aspects may dictate which broker is best to use, as not all are created equal. Nevertheless, to help you with the first step of buying NRDS shares, there is a table below of some of the top online brokerages. 

NRDS on Benzinga Pro

The NerdWallet share price has moved relatively sideways for several months. It is evident when looking at the Relative Strength Index (RSI) that there has yet to be any real impetus for bulls or bears. The RSI on the daily chart hasn’t entered overbought or oversold territory for some time. 

Despite the price recently crossing its 100-day moving average on the daily chart, NRDS has experienced no significant push higher, although it may be an area that, in the near term, the price may bounce from. 

nrds on benzinga pro

Screenshot taken from Benzinga Pro on 12-2-2022

Money-saving strategies are crucial today more than ever, and NerdWallet is an excellent resource if users have basic inquiries. In addition, not everyone is a money expert, making the company’s services useful. 

The company has a strong foundation and has shown growth this year. As a result, NerdWallet could prove resilient as the global economy continues to suffer. However, if ad spending continues to decline, expect pressure on NerdWallet shares. You can always find out more about NRDS and other stocks at Benzinga.

Frequently Asked Questions

Q

Is NerdWallet a good service?

A

Popular personal finance website NerdWallet supports many users in making wiser financial decisions. Although it offers exceptional customer guidance, its services shouldn’t be viewed as financial advice.

Q

Who started NerdWallet?

A

Tim Chen is the founder and CEO of NerdWallet. The former hedge fund equity analyst founded the company with Jacob Gibson in August 2009. 

About Sam Boughedda, Stock Market Analyst

He is an expert in the following spaces: stock market news writing, analysis, and research.