11 Best High Short Interest Stocks With Biggest Upside Potential

3. Pagaya Technologies Ltd. (NASDAQ:PGY)

Number of Hedge Fund Holders: 38

Average Upside Potential: 78.66%

Pagaya Technologies Ltd. (NASDAQ:PGY) is one of the best high short interest stocks with biggest upside potential. On January 2, Keefe Bruyette reduced the price target on Pagaya to $35 from $38 while maintaining an Outperform rating. This sentiment was announced as the firm adjusted price targets in consumer finance and payments groups.

In Q3 2025, Pagaya Technologies Ltd. (NASDAQ:PGY) achieved a 19% year-over-year increase in network volume to $2.8 billion and a 36% rise in total revenue to $350 million. This performance was anchored by a 31% growth in personal loans and an expansion in auto and point-of-sale volumes, which reached annualized run-rates of $2.2 billion and $1.4 billion, respectively.

Pagaya is leveraging its B2B2C model to institutionalize long-term relationships and reported the highest number of partners in its onboarding queue in company history. This pipeline includes up to 8 new partners across personal loans, auto, and POS asset classes, including mega billion-dollar partners.  Management now expects full-year network volume between $10.5 billion and $10.75 billion and total revenue up to $1.325 billion, with current cash reserves projected to fund operations well into 2028.

Pagaya Technologies Ltd. (NASDAQ:PGY) is a product-focused technology company that deploys data science and proprietary AI-powered technology for financial services and other service providers, their customers, and asset investors in the US, Israel, and the Cayman Islands.