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PGY Shares Soar 100.9% YTD: Time to Buy More or Lock in Profits?
Pagaya Technologies .Pagaya Technologies .(US:PGY) ZACKSยท2025-06-17 14:41

Core Insights - Pagaya Technologies Ltd. (PGY) is recognized as a leading fintech company utilizing AI and machine learning to improve credit decision-making and underwriting in consumer lending [1][9] - PGY stock has increased by 100.9% year-to-date, outperforming competitors LendingTree and Upstart Holdings, which have seen declines of 8.8% and 10.6% respectively [2][9] Business Model and Strategy - Pagaya's business model is diversified and resilient, expanding beyond personal loans into auto lending and point-of-sale financing, which mitigates cyclical risks [6] - The company has established a network of over 135 institutional funding partners to support asset-backed securities (ABS) sales and utilizes forward flow agreements for alternative funding [7][12] - Pagaya's proprietary data and product suite, including the Pre-screen solution, enhances customer relationships and credit access with minimal marketing costs [8] Financial Performance and Projections - The Zacks Consensus Estimate for earnings in 2025 and 2026 is projected at $2.45 and $3.13, indicating growth rates of 195.2% and 28% respectively [13] - Revenue estimates for 2025 and 2026 suggest year-over-year growth of 19.9% and 15.7%, with total revenues expected between $1.175 billion and $1.3 billion [16] Valuation Analysis - Pagaya's stock is trading at a price-to-book (P/B) ratio of 3.20X, below the industry average of 3.37X, indicating it is undervalued compared to peers like Upstart and LendingTree [20][22] - The capital-efficient model minimizes credit risk and market volatility, allowing for financial flexibility during economic fluctuations [10][11] Analyst Sentiment - Analysts have a bullish outlook on Pagaya, with strong earnings and revenue growth projections, positioning the company favorably for continued expansion [24]