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Strength Seen in Pagaya Technologies Ltd. (PGY): Can Its 6.1% Jump Turn into More Strength?

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Pagaya Technologies Ltd. (PGY - Free Report) shares soared 6.1% in the last trading session to close at $10.57. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 33.9% loss over the past four weeks.

The upside can be attributed to Pagaya Technologies' core strength in its proprietary AI-powered technology, enabling efficient credit evaluation and decision-making for partners in originating loans and financial products. The company has processed more than $1.8 trillion in loan applications, significantly enhancing the accuracy and predictive power of its AI. With more than 25 partners, including U.S. Bank and Westlake, Pagaya's expansive network supports robust growth. Additionally, the company continues to innovate, expanding product offerings and entering new markets like single-family rental management.

On Sep. 26, 2024, PGY’s subsidiary, Pagaya US Holding Company LLC, priced its offering of $140 million in exchangeable senior notes, increased from $125 million due to strong demand. The notes, accruing 6.125% interest, will mature on Oct. 1, 2029. Pagaya will use proceeds to repay higher-cost debt and for general corporate purposes.

This company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of +12.5%. Revenues are expected to be $253.96 million, up 26.1% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Pagaya Technologies Ltd., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PGY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Pagaya Technologies Ltd. belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Jackson Financial (JXN - Free Report) , closed the last trading session 0.1% lower at $91.23. Over the past month, JXN has returned 1.5%.

Jackson Financial's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $4.54. Compared to the company's year-ago EPS, this represents a change of +19.5%. Jackson Financial currently boasts a Zacks Rank of #2 (Buy).


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