Sezzle Stock Has Surged 102% Since April. A Short Squeeze Could Be Next.

• Sezzle (SEZL) demonstrates exceptional technical momentum, with a recent 102% gain since an April “buy” signal.
• Shares are up more than 150% in the year to date.
• SEZL’s fundamentals are robust with analysts calling for more than 40% earnings growth this year.
• Market sentiment is bullish, with most analysts rating SEZL a “Strong Buy.” 

Today’s Featured Stock

Valued at $5.1 billion, Sezzle (SEZL) is a purpose-driven digital payments company. Its payment platform increases the purchasing power of consumers by offering interest-free installment plans at online stores and select in-store locations.  

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction, a Weighted Alpha above 50+, and a 60-month beta above 1.5. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. SEZL checks those boxes. The Trend Seeker issued a new “Buy” signal on April 17. Since then, the stock has gained 102.14%.

Barchart’s Technical Indicators for Sezzle

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Sezzle scored a year-to-date high of $165.88 on June 25.

• Sezzle has a Weighted Alpha of +64.60.
• SEZL has a 100% “Buy” opinion from Barchart.
• The stock is up 5.4% over the past 52 weeks.
• Sezzle has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $162.66 with a 50-day moving average of $108.61.
• SEZL has made 13 new highs and gained 58.71% over the past month.
• 60-month beta of 6.96.
• Relative Strength Index (RSI) is at 73.57.
• There’s a technical support level around $151.83.

Don’t Forget the Fundamentals

• $5.10 billion market capitalization.
• 37.53x trailing price-earnings ratio.
• Analysts project revenue to grow 32.41% this year and another 25.31% next year.
• Earnings are estimated to increase 42.01% this year and an additional 27.38% next year.

Analyst and Investor Sentiment on Sezzle

• The Wall Street analysts followed by Barchart give the stock 4 “Strong Buy,” 2 “Moderate Buy,” and 1 “Hold” opinion with price targets between $108 and $166.
• Value Line rates the stock “Above Average.”
• CFRA’s MarketScope rates the stock a “Strong Buy.”
• Morningstar thinks the stock is 14% overvalued with a price target of $132.57.
• 11,990 investors are following the stock on Seeking Alpha, which rates it a “Strong Buy” and considers the stock the best transaction and payment processing services company.
• Short interest is a high 15.09% of the float with 8.34 days to cover the float.

The Bottom Line on Sezzle

Key products include the “Pay in 4” plan, which divides payments into four installments over six weeks, and other variations like “Pay in 2” and “Pay in 5” with a primary focus on younger, tech-savvy consumers. The stock is overvalued based on Morningstar and its high short interest, but Value Line, CFRA’s MarketScope, and Seeking Alpha still like it. Are you betting for or against a short squeeze coming?

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.