Pagaya's Hidden Value: Top Reasons To Buy This Undervalued Stock

Star Investments7.07K FollowersFollow5ShareSavePlay(36min)CommentsSummaryPagaya Technologies is rated a buy for long-term, value-oriented growth investors despite recent underperformance and headwinds in the fintech sector.Its business model improvements—revolving ABS, risk-based securities, and partner onboarding—enhance safety and operating leverage, positioning it as an AI-powered financial infrastructure provider.While revenue growth has slowed, 2025 operating income rose 294%, and the company is prioritizing balance sheet strength over 'growth at all costs.'The company trades at a forward 2027 PEG of 0.20 and P/E of 4.03, suggesting undervaluation if operating leverage and partner expansion persist. Userba011d64_201/iStock via Getty Images My May 2025 buy recommendation for Pagaya Technologies Ltd. (PGY) was based on the belief that the market undervalued the company's move toward GAAP (generally accepted accounting principles) profitability. That assessment looked correct for several months. TheThis article was written byStar Investments7.07K FollowersFollowI have been a Merchant Seaman that has traveled the world for over 30 years. Within the last 15 years, I developed a very intense interest in investing. I learned a lot of what I know about investing from The MF. Also because I have a engineering background, I often tend to gravitate to Tech stocksAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.