10 Best Cheap Stocks That Will Skyrocket

4. Pagaya Technologies Ltd. (NASDAQ:PGY)

Forward P/E: 7.10

Stock Upside Potential: 97.04%

Number of Hedge Fund Holders: 38

Pagaya Technologies Ltd (NASDAQ:PGY) is one of the best cheap stocks that will skyrocket. On January 6, analysts at Citizens reiterated a Market Outperform rating on Pagaya Technologies Ltd (NASDAQ:PGY) with a $35 price target.

According to the research firm, Pagaya Technologies boasts a competitive edge in the marketplace lending sector due to strong unit economics and operating leverage. Consequently, the company boasts robust EBITDA margins and a healthy gross profit margin of 42.43%.

Citizens expects the company to continue benefiting from its B2B2C model, which integrates directly into lenders’ platforms for underwriting and turn-downs. The model has enabled step-function growth through new lender additions. In addition, the company has sought to strengthen its growth metrics by diversifying beyond its core personal loan business into auto point-of-sale and other new product verticals.

Meanwhile, late last year, Pagaya Technologies inked a strategic partnership with digital personal finance company Achieve to broaden consumer access to personal loans. The goal is to integrate the company’s AI-powered underwriting technology and data network into its platform.

Sanjiv Das, Co-Founder and President of Pagaya, stated: “By embedding Pagaya’s AI-powered network with Achieve’s existing platform, we can help them responsibly increase access to personal loans, while supporting their long-term vision.”

Pagaya Technologies Ltd. (NASDAQ:PGY) is a financial technology (fintech) company that uses AI, machine learning, and a vast data network to provide credit and real estate solutions to partners, helping them extend financial services, including personal, auto, and home loans.