9 Overlooked Growth Stocks to Buy

5. Sezzle Inc. (NASDAQ:SEZL)

Number of Hedge Fund Holders: 22

Sezzle Inc. (NASDAQ:SEZL) is one of the overlooked growth stocks to buy. On January 8, TD Cowen lowered the firm’s price target on Sezzle to $82 from $83 and maintained a Hold rating on the shares. The firm revised its price target to align with its latest Specialty Finance outlook, accounting for broader macroeconomic pressures alongside secular growth trends. This updated valuation considers the evolving landscape across credit cards, auto and student lending, non-prime credit, Buy-Now-Pay-Later/BNPL, and lease-to-own markets.

In Q3 2025, Sezzle reported that its quarterly revenue increased by a 67% year-over-year to generate $116.8 million. EPS totaled $0.71, which beat Street estimates by $0.06. The company’s GMV grew 58.7% and surpassed $1 billion for the first time in a single quarter. Management made a decisive move to deemphasize its on-demand product in favor of its subscription model. While the on-demand feature was intended to transition users into long-term subscribers, it underperformed in conversion at the POS.

Sezzle Inc. (NASDAQ:SEZL) raised its full-year 2025 guidance and now expects GAAP EPS of $3.52 and adjusted EPS of $3.38. The company also issued preliminary 2026 guidance and forecasted an adjusted EPS of $4.35. This target reflects a projected 29% growth over 2025, driven by continued subscription expansion, cost efficiencies, and the rising consumer preference for BNPL services over traditional credit cards.

Sezzle Inc. (NASDAQ:SEZL) operates as a technology-enabled payments company primarily in the US and Canada.