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Upstart (UPST) to Enhance PriorityONE's Digital Lending System

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Upstart (UPST - Free Report) has partnered with PriorityONE Credit Union to provide an improved digital personal lending experience with affordable credit for the latter’s community.

PriorityONE is a community-driven credit union based in Florida. In April 2023, it collaborated with UPST to become an Upstart Referral Network lending partner. The new personal loan offering will be available on Upstart.com. This can be availed by the applicants who meet PriorityONE's credit policies.

The applicants will receive tailored offers as they progress through the online member application. This collaboration is set to help PriorityONE increase its digital membership base.

The partnership with PriorityONE is expected to boost the volume of loan transactions on Upstart’s platform. In the fourth quarter of 2023, the company had around 129,000 loan transactions, which increased 12% from the previous quarter and added more than 82,000 new borrowers.

The company also observed that its small-dollar product now comprises 15% of its total platform traffic. The small-dollar loan borrowers are those applicants who do not qualify for regular personal loans.

However, UPST is facing challenges from the rising interest rates affecting its auto-lending division. Elevated consumer risk caused by bank failures has given rise to conservatism in the lending market, creating hurdles for the company.

Zacks Rank and Stocks to Consider

Currently, Upstart carries a Zacks Rank #3 (Hold). Shares of UPST have soared 43.5% in the past year.

Some better-ranked stocks from the broader technology sector are NVIDIA (NVDA - Free Report) , Dell Technologies (DELL - Free Report) and Bentley Systems (BSY - Free Report) . While NVDA and DELL sport a Zacks Rank #1 (Strong Buy) each, BSY carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NVIDIA’s 2025 earnings per share has been revised upward by 62 cents to $23.84 in the past 30 days. Shares of NVDA have skyrocketed 203.7% in the past year.

The Zacks Consensus Estimate for DELL’s 2024 earnings per share has been revised upward by 60 cents to $7.64 in the past 60 days. Shares of DELL have surged 162.9% in the past year.

The Zacks Consensus Estimate for Bentley Systems' 2024 earnings per share has been revised downward by a penny to $1.01 in the past 30 days. Shares of BSY have gained 15.1% in the past year.

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