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With tariff negotiations showing signs of progress and volatility easing, it looks like the bull market may be back on track. While household names like the Magnificent 7 and leading AI giants are expected to benefit, investors willing to look off the beaten path may find even greater upside in lesser-known names.
This article highlights three under-the-radar tech stocks that are already showing signs of powerful momentum and may just be getting started. Each of these companies is a high-growth innovator, backed by strong growth forecasts, surging stock price action, and a top Zacks Rank.
Sezzle Inc. (SEZL), Pagaya Technologies Ltd. (PGY),and AppLovin (APP) are three standout names with enormous potential in the current environment. They may not be as widely followed as the giants, but for investors comfortable with higher volatility and looking to ride the next wave of tech winners, these stocks are worth a close look.
Image Source: Zacks Investment Research
Pagaya Technologies Ltd: The Market’s Next Big Stock
Pagaya Technologies Ltd. is, in my opinion probably the most compelling stock in the market today. The company operates at the intersection of AI and financial technology, using machine learning to enhance credit decisioning and underwriting across consumer lending platforms. Its proprietary AI models help financial institutions expand access to credit while managing risk more efficiently, a massive addressable market with long-term tailwinds.
While the stock took a hit earlier this year following a disappointing Q1 earnings report, the turnaround has been swift and impressive. Pagaya has bounced back with earnings inflecting meaningfully positive and analysts raising their earnings forecasts. Pagaya Technologies now has a Zacks Rank # 1 (Strong Buy) rating.
What makes the story even more compelling is the valuation. Pagaya trades at just 8.3x forward earnings, despite projected sales growth of 20% this year and 16% next year. Even more impressive, earnings are expected to surge 112% in 2025 and another 39% in 2026.
For investors looking for a high-growth, AI-driven stock with serious upside potential and a reasonable valuation, Pagaya could be the market’s next breakout name.
Image Source: Zacks Investment Research
Sezzle Inc: Shares Remain Cheap Despite Huge Rally
Sezzle Inc. is another stock I’m genuinely excited about and for good reasons. I originally highlighted the company back in the fall of 2024, and since then, it’s become one of the best-performing recommendations I’ve ever made. Sezzle operates in the Buy Now, Pay Later (BNPL) space, helping consumers access flexible financing options, while maintaining a focus on profitability and disciplined growth.