Pagaya Technologies Ltd -A (NASDAQ:PGY): A High-Growth Momentum Stock Aligned with Minervini’s Trend Model

Pagaya Technologies Ltd -A (NASDAQ:PGY): A Strong Momentum Stock Aligned with Minervini’s Trend Model

Mark Minervini’s Trend Model is a method for spotting stocks in strong upward trends, using both technical and fundamental factors to find high-potential options. The approach looks for stocks with strong price movement, high relative performance, and alignment with key moving averages, all while ensuring they are in strong industries. High-growth momentum (HGM) investing also focuses on companies with fast-growing earnings, rising revenue, and better profit margins, making them appealing for investors looking for quick gains.

Pagaya Technologies Ltd -A (PGY) has been flagged by a screen that combines Minervini’s Trend Model with a high-growth momentum filter, indicating it fits both technical and fundamental requirements for a potential breakout.

Why PGY Matches the Minervini Trend Model

The Trend Model requires stocks to meet several technical conditions to confirm a strong upward trend. PGY meets these key criteria:

• Price Above Key Moving Averages:

  • Current price ($31.09) is above the 50-day ($20.88), 150-day ($14.24), and 200-day SMA ($13.38).
  • The 50-day SMA is above both the 150-day and 200-day SMAs, showing bullish alignment across timeframes.
  • Both the 150-day and 200-day SMAs are moving upward, supporting long-term strength.

• High Relative Performance:

  • PGY’s ChartMill Relative Strength (CRS) score is 97.99, meaning it beats nearly 98% of all stocks—a sign of market leadership.

• Price Performance vs. 52-Week Range:

  • The stock is trading 30% above its 52-week low ($8.20) and within 10% of its 52-week high ($34.29), showing steady upward movement.

These factors align with Minervini’s focus on stocks in Stage 2 (uptrend) with institutional backing and low volatility before breakouts.

High-Growth Momentum Fundamentals

Beyond technicals, PGY shows fast-growing metrics, important for high-growth investors:

• Revenue Growth:

  • TTM revenue growth: +23.7%
  • Last quarter (Q2Q) revenue growth: +18.2%
  • Next quarter revenue growth estimate (Q+1): +27.2%
  • Rising revenue estimates (+3.1% over the last 3 months) suggest growing analyst confidence.

• Earnings Momentum:

  • Last quarter EPS growth (Q2Q): +309.1% (though past quarters were uneven).
  • Big upward revision in next-year EPS estimates (+104.1% in the last 3 months), showing optimism.

• Profitability Improvement:

  • Latest quarter profit margin: +2.55%, a positive change after earlier losses.
  • Free cash flow growth (TTM): +167.2%, reflecting better operational efficiency.

While EPS is still negative on a TTM basis (-$4.48), the sharp quarterly improvements and rising estimates point to a possible turnaround—a key feature of high-growth stocks.

Technical Breakout Potential

ChartMill’s technical report gives PGY a rating of 9/10, noting:

• Strong long- and short-term upward trends.
• Trading near 52-week highs with high relative performance.
• Support at $31.08, offering a clear risk level for traders.

However, the setup rating is 3/10, meaning current volatility may require waiting for a tighter consolidation before an ideal entry.

Read the full technical analysis here.

Conclusion

PGY makes a strong case for investors using Minervini’s trend-following approach and high-growth momentum strategies. Its technical strength, industry leadership (fintech/AI), and improving fundamentals make it worth further study—especially if it stabilizes near support before a breakout.

For more stocks fitting this high-growth + trend model criteria, check the High Growth Momentum + Trend Model screen.

Disclaimer: This is not investment advice. Our analysis is for informational and educational purposes only. Always conduct your own research and consider risk management strategies before trading. Read our full disclaimer here.