Core Insights - Sezzle (SEZL) reported a remarkable 123.3% year-over-year increase in revenue for Q1 2025, reaching $104.9 million, marking a new quarterly high [1][8] - The growth in revenue was driven by a 64.1% year-over-year increase in gross merchandise volume (GMV), attributed to higher user engagement and the introduction of new products [1][8] Revenue Drivers - The annual consumer purchase frequency rose to 6.1 times in Q1 2025 from 4.5 times in the same quarter last year, indicating that existing users are utilizing SEZL's platform more frequently [2] - Expansion of the merchant network, including partnerships with Scheels and WHOP, contributed to the increase in GMV and overall revenue [3] - The partnership with WebBank, established in August 2024, has enhanced Sezzle's funding mechanisms and operational capabilities, allowing for a larger customer base and increased transaction volume [4] Competitive Positioning - SEZL's revenue growth outpaced that of Affirm (AFRM) and PayPal (PYPL) in the March-end quarter, with Affirm showing a 36% year-over-year revenue increase and PayPal only a 1% increase [5] - SEZL's stock has surged 661.6% over the past year, significantly outperforming the industry average of 28.2% and the Zacks S&P 500 composite's 12.8% rise [6] Valuation and Estimates - The Zacks Consensus Estimate for Sezzle's earnings for 2025 has increased by 46.6% over the past 30 days [10] - SEZL trades at a forward price-to-earnings ratio of 31.23, which is above the industry average of 23.39 [12] - SEZL currently holds a Zacks Rank 1 (Strong Buy) [13]

Group 1 - The article focuses on Sezzle, a pure-play Buy Now Pay Later (BNPL) company, highlighting its rapid growth in the financial technology sector [1] - The author has experience analyzing diversified transaction and payment processing companies, indicating a strong background in the financial technology industry [1] - The author expresses a personal interest in investing, particularly in technology stocks, which may influence the analysis of Sezzle [1] Group 2 - There is no specific financial data or performance metrics provided in the documents to summarize [2]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Sezzle Inc. (SEZL) - Sezzle Inc. currently holds a Momentum Style Score of B, indicating a favorable position in momentum investing [3]. - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [4]. Performance Metrics - Over the past week, SEZL shares have increased by 12.29%, while the Zacks Financial Transaction Services industry has decreased by 3.25% [6]. - In a longer timeframe, SEZL's monthly price change is 91.48%, significantly outperforming the industry's 0.48% [6]. - Over the past quarter, SEZL shares have risen by 174.02%, and over the last year, they have increased by 698.53%, compared to the S&P 500's performance of -0.52% and 14.2%, respectively [7]. Trading Volume - SEZL's average 20-day trading volume is 1,382,738 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the past two months, two earnings estimates for SEZL have been revised upwards, increasing the consensus estimate from $2.21 to $3.24 [10]. - For the next fiscal year, two estimates have also moved upwards, with no downward revisions noted [10]. Conclusion - Considering the positive performance metrics and earnings outlook, SEZL is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [12].

Core Insights - Sezzle (NASDAQ: SEZL) demonstrated strong performance in Q1 2025, indicating potential for long-term success in the Buy Now, Pay Later sector [1] Financial Performance - The company is experiencing significant revenue growth, although specific figures are not provided in the text [1]

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock alive.Inves ...

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Group 1: Market Reactions and Stock Performance - April's "Liberation Day" led to significant market volatility, creating opportunities for both bullish and bearish investors [1][2] - Deckers Outdoor Corp. (DECK) experienced a 20% decline due to tariff cost absorption, highlighting the impact of trade policies on specific companies [2] - Notable stock performances included Papa John's International Inc. (PZZA) up 29%, Coupang Inc. (CPNG) up 26%, and JBT Marel Corp. (JBTM) up 18% [7] Group 2: Tax Legislation and Economic Impact - The U.S. House of Representatives passed a comprehensive tax bill aimed at extending the 2017 tax cuts, which is expected to increase consumer demand [6] - Intuit Inc. (INTU) is recommended as a beneficiary of potential tax changes, regardless of Congressional actions [4] - Analysts predict a surge in revenues for Sezzle Inc. (SEZL) by 62% this year, benefiting from increased consumer spending [9] Group 3: Technology Sector Developments - The tech sector is poised for growth as regulations are expected to be relaxed, particularly benefiting chipmakers like Monolithic Power Systems Inc. (MPWR) which has seen a 20% increase [12] - Interactive Brokers Group Inc. (IBKR) is positioned to capitalize on the relaxation of tech regulations, offering a platform that integrates various trading assets [13][15] - The potential for growth in prediction markets and cryptocurrencies is highlighted as new areas of opportunity for Interactive Brokers [16] Group 4: Energy Sector Opportunities - The energy sector is set to benefit from accelerated permit approvals for fossil fuel production, with MPLX LP (MPLX) identified as a strong player in the natural gas pipeline industry [18][20] - MPLX is expected to see a 7% increase in revenues and profits this year, with a favorable risk-reward profile due to its conservative asset base [21] - The stock trades at a discount compared to competitors, offering a high dividend yield of 7.6% [21]

Core Insights - The buy now, pay later (BNPL) business model is experiencing rapid growth, with PayPal reporting a 20% increase in payment volume through its BNPL product in Q1 [1] - PayPal's BNPL customers are notably active, spending 33% more and conducting 17% more transactions compared to other users [2] - Despite the growth in BNPL, PayPal's overall revenue increased by only 2% on a constant currency basis, indicating it is not currently a high-growth stock [2] PayPal - PayPal is focusing on the BNPL segment due to the higher spending and transaction frequency of BNPL customers [2] - The company is facing challenges in maintaining growth, as evidenced by its modest revenue increase [2] Sezzle - Sezzle reported exceptional revenue growth of over 123% in Q1, alongside a significant increase in adjusted operating margin by over 1,600 basis points compared to Q4 2024 [3] - The company achieved an adjusted net income margin of over 34%, significantly outperforming competitor Affirm's margin of less than 1% [4] - Sezzle raised its revenue growth guidance for 2025 from 25% to over 62% and increased its adjusted earnings per share guidance by 47% to $3.25 [5] - Following its strong Q1 results, Sezzle's shares surged over 42% [5] - Analysts at B. Riley raised their price target on Sezzle by 60% to $101 per share, indicating a potential upside of around 12% [6] Affirm - Affirm experienced a revenue increase of 36% in the last quarter and raised its guidance for the next quarter, although the increase was less than expected, leading to a 14% drop in shares [8] - Affirm's partnership with Costco, which has an estimated e-commerce revenue exceeding $11 billion in 2024, is a significant development that could enhance its gross merchandise volume (GMV) [11][12] - Costco's e-commerce sales growth rate of 22% on a constant currency basis positions Affirm favorably compared to smaller competitors like Sezzle [12] Market Positioning - Sezzle and Affirm represent two distinct investment opportunities within the growing BNPL industry, with Sezzle being a smaller, rapidly growing player and Affirm being a more established company with significant partnerships [13]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Core Viewpoint - The article discusses the potential resurgence of the bull market, highlighting opportunities in lesser-known tech stocks alongside established names like the Magnificent 7 and leading AI companies [1] Group 1: Under-the-Radar Tech Stocks - Three tech stocks, Sezzle Inc. (SEZL), Pagaya Technologies Ltd. (PGY), and AppLovin (APP), are identified as having significant growth potential and are showing strong momentum [2][3] - These companies are characterized as high-growth innovators with robust growth forecasts and favorable stock price movements, supported by a top Zacks Rank [2] Group 2: Pagaya Technologies Ltd. - Pagaya Technologies operates at the intersection of AI and financial technology, utilizing machine learning to improve credit decision-making and underwriting in consumer lending [4] - Despite a setback following a disappointing Q1 earnings report, Pagaya has shown a strong recovery, with analysts raising earnings forecasts and achieving a Zacks Rank 1 (Strong Buy) [5] - The stock trades at a forward earnings multiple of 8.3x, with projected sales growth of 20% this year and 16% next year, alongside expected earnings growth of 112% in 2025 and 39% in 2026 [6] Group 3: Sezzle Inc. - Sezzle operates in the Buy Now, Pay Later (BNPL) sector, providing flexible financing options while focusing on profitability and disciplined growth [8] - The stock, despite a significant rally, remains attractively valued at 26.9x forward earnings, with projected sales growth of 62% this year and 20.8% next year, and earnings expected to rise 76% in 2025 and 30% in 2026 [9][10] - Sezzle also holds a Zacks Rank 1 (Strong Buy), reflecting a positive earnings revision trend with significant increases in earnings estimates for 2025 and 2026 [10] Group 4: AppLovin - AppLovin provides a mobile app marketing and monetization platform powered by machine learning, aiding app developers in revenue optimization [11] - The company has experienced substantial growth, with recent upward earnings revisions of 19.2% for the current quarter and 12.5% for the full year [12] - Although trading at a premium valuation of 42.5x forward earnings, the growth outlook is strong, with projected sales increases of 24.3% in 2025 and 16.3% in 2026, and earnings expected to grow by 70.6% this year and 44.8% next year [13][16] Group 5: Investment Considerations - For investors seeking high-growth tech exposure beyond major names, Pagaya Technologies, Sezzle, and AppLovin present a compelling mix of momentum, earnings strength, and long-term potential, supported by rising analyst estimates and top Zacks Ranks [17]