Why PGY Can Be the Right Fintech Bet for Traders With a Potential Upside of 50%?

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Traders seeking good-quality Fintech stocks for the second half of 2024 can seriously consider Pagaya Technologies (PGY). Trading.biz analyst Rahul Nambiampurath highlights that as a Fintech firm, Pagaya actively leverages machine learning and AI, rejigging the existing credit system. The rise in mortgage-led purchases can push Pagaya higher up analyst charts.

**“**Pagaya provides institutional lenders, such as banks and insurance companies, with data-driven methods to assess credit applications more accurately, making it one of the vital cogs in the financial machinery,” mentions Rahul.

Are the Financials Bullish Enough?

Traders who have been following PGY know that the stock has been down close to 9.3% in 2024. However, the last financial report released on May 9, 2024, did bring some bullishness into the mix, as before that, PGY was trading at a 40% low compared to 2023 highs.

Here are the key insights from the Q1 2024 financial report:

Revenue: $245 million, up 31% year-over-year.
Non-GAAP Earnings: 20 cents per share, 4 cents above expectations.
Network Volume: A record $2.42 billion.
Cash Flow: $20 million in positive cash flow from operations

Rahul states that strong revenue growth in Q1 is one reason for bolstering investor confidence. The growing network volume also demonstrates the platform’s scalability.

The next financial report, expected to be released on August 9, 2024, could push the prices higher. Analysts project revenue of $239 million and an improved EPS of 28 cents.

Diving Into the Technicals

PGY is currently trading at $14.15 and needs to breach past the $15.60 mark to start moving aggressively. The momentum is supporting the uptrend, with RSI making higher highs and higher lows.

But then, Rahul has identified an interesting, supposed cup-and-handle formation. If PGY manages to reach $20 while maintaining decent trading volume, a move up to $24 should also be possible.

Analysts at Hecht believe that the right impetus, delivered by optimistic Q2 numbers, can push the prices to $30, over 50% from the current levels.

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Are the Financials Bullish Enough?

Here are the key insights from the Q1 2024 financial report:

Revenue: $245 million, up 31% year-over-year.
Non-GAAP Earnings: 20 cents per share, 4 cents above expectations.
Network Volume: A record $2.42 billion.
Cash Flow: $20 million in positive cash flow from operations

Rahul states that strong revenue growth in Q1 is one reason for bolstering investor confidence. The growing network volume also demonstrates the platform’s scalability.

The next financial report, expected to be released on August 9, 2024, could push the prices higher. Analysts project revenue of $239 million and an improved EPS of 28 cents.

Diving Into the Technicals

PGY is currently trading at $14.15 and needs to breach past the $15.60 mark to start moving aggressively. The momentum is supporting the uptrend, with RSI making higher highs and higher lows.

But then, Rahul has identified an interesting, supposed cup-and-handle formation. If PGY manages to reach $20 while maintaining decent trading volume, a move up to $24 should also be possible.

Analysts at Hecht believe that the right impetus, delivered by optimistic Q2 numbers, can push the prices to $30, over 50% from the current levels.