• Sezzle (SEZL) has exceptional technical momentum, trading above all major moving averages.
• The digital payments company is up 856.6% over the past year.
• SEZL stock has a 100% technical “Buy” signal via Barchart.
• Trend Seeker issued a “Buy” signal on April 21

Today’s Featured Stock:

Valued at $3.51 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. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. SEZL checks those boxes. Since the Trend Seeker signaled a buy on April 21, the stock has gained 132.73%.

SEZL Price vs. Daily Moving Averages:

Barchart 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.

When a stock is trading above all its daily moving averages and closes within 1.15% of its 52-week high, it won’t take much to hit another new high.

• Sezzle has a 100% technical “Buy” signal.
• The stock closed at $110.36 on May 27, above its 50-day moving average of $55.48.
• SEZL has a Weighted Alpha of +141.74.
• The stock has gained 856.6% over the past year.
• Trend Seeker “Buy” signal intact.
• SEZL is trading above its 20, 50 and 100-day moving averages.
• The stock has made two new highs and is up 130.06% in the last month.
• The 14-day Relative Strength Index is at 89.41%.
• The technical support level is $99.00.

Follow the Fundamentals:

• $3.51 billion market cap.
• 39.40x trailing price-earnings ratio.
• Revenue is projected to grow 61.7% this year and another 20.83% next year.
• Earnings are estimated to increase 75.77% this year and an additional 29.94% next year.

Analyst and Investor Sentiment on Sezzle:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like not only Wall Street analysts, but also many of the popular investing advisory services, are moderately bullish on this stock.

• Wall Street analysts tracked by Barchart issued two “Strong Buy” opinions on the stock.
• Value Line gives the stock an average rating.
• CFRA’s MarketScope gives the stock a “Strong Buy.”
• Morningstar thinks the stock is 10% overvalued.
• 3,380 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line:

Sezzle currently has momentum and support from both the market and individual investors but faces competition from both Affirm (AFRM) and PayPal (PYPL).

I caution that SEZL is volatile and speculative — use strict risk management and stop-loss strategies.

Additional disclosure: The Barchart 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 and reevaluate your stop losses at least on a weekly basis.