Pagaya's asset-light model shields it from credit risk while powering 213% YTD gains and sharp earnings growth forecasts.
Pagaya Technologies Ltd. PGY and OneMain Holdings, Inc. OMF are both consumer finance companies focused on catering to the underserved credit market -- subprime and non-prime borrowers.
Pagaya Technologies Ltd. (PGY) closed the most recent trading day at $31.47, moving 2.27% from the previous trading session.
Here is how Pagaya Technologies Ltd. (PGY) and Acadian Asset Management (AAMI) have performed compared to their sector so far this year.
Does Pagaya Technologies Ltd. (PGY) have what it takes to be a top stock pick for momentum investors?
Pagaya Technologies Ltd. (PGY) was a big mover last session on higher-than-average trading volume.
Pagaya Technologies Ltd.'s fundamentals, including robust Q2 preliminary results released this morning, justify its recent stock rally and ongoing re-rating. The company's AI-driven B2B lending platform is set for sustained, profitable growth, targeting network volume expansion from $10B to $25B over the next 3-5 years. Despite a 200%+ rally, Pagaya remains undervalued versus peers and on an absolute level, with a 5-year price target of $148.62 and expected CAGR of ~39%.
At a glance, Pagaya Technologies PGY stock looks attractively priced in terms of its price/sales (P/S) ratio when compared with its peers. Value investors try to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts compared with fair value.
Does Pagaya Technologies Ltd. (PGY) have what it takes to be a top stock pick for momentum investors?
Pagaya has shown impressive operational improvements, with profitability metrics and adjusted EBITDA margins rising sharply over recent quarters. The company's focus on higher-quality, risk-adjusted loans and tighter underwriting has driven better financial performance and reduced risk. Despite strong execution, recent stock outperformance has led to elevated investor sentiment. We recommend waiting for a pullback before adding new money.
Pagaya has achieved profitability, expects to be self-funded, and no longer needs equity offerings, supporting a more stable investment outlook. The company is expanding its partner network and product offerings, targeting major U.S. banks and aiming for 40-50 partners, driving future growth. Valuation remains extremely low versus peers like Upstart, offering significant upside if Pagaya executes on growth and controls credit losses.
Pagaya Technologies Ltd. (PGY) witnessed a jump in share price last session on above-average trading volume.