And today, we’re staying with the consumer, but we’re moving from lingerie to lending.
That brings us to Sezzle $SEZL.
Sezzle is a $5 billion credit services stock and one of the hottest growth stories in the market right now.
The company operates in the buy-now-pay-later space, giving consumers a way to split purchases into smaller payments while giving merchants another tool to drive conversion, order size, and customer engagement.
In plain English, Sezzle sits right at the intersection of two major themes: stretched consumers and digital payments.
Since bottoming in April, SEZL has rallied roughly 180% in a straight line, and now the stock is testing one of the most important levels on the chart.
The key zone is around $160.
The $160 level served as resistance last year and remains the final major hurdle between SEZL and fresh all-time highs.
If buyers can push the stock through that level and hold it, this massive bearish-to-bullish reversal pattern will be complete, and the path of least resistance should shift decisively higher.
And the earnings scorecard gives buyers plenty of ammunition.
The company almost always beats the market’s top and bottom-line expectations, and investors have been willing to reward those reports aggressively.
The last two earnings reactions were especially strong.
In February, the stock rallied 35% after earnings.
Then, in May, it followed that up with another 16% reaction.
That's the kind of earnings sentiment we want to see in a hot growth stock.
But the one-day reaction is only part of the story.
The drift is even better.
Heading into the most recent report, SEZL rallied nearly 24% in the month before earnings.
And after the report, the stock continued higher, gaining another 31.6% in the following month.
In other words, buyers were accumulating before the numbers came out and kept buying after they saw them.
When you dig into Sezzle's fundamentals, it's clear why the earnings sentiment is so positive.
Over the past five quarters, Sezzle has posted incredible top- and bottom-line growth.
In the company's latest earnings report, revenues grew by more than 29% YoY, and earnings per share grew by 43% over the same period.
And that's why the market is treating the stock like a high-growth fintech leader with expanding profitability and strong earnings momentum.
It also explains why the technicals are so strong.
With Sezzle, we get the complete package. The technicals, fundamentals, and earnings sentiment are all pointing higher.
If SEZL clears $160 and holds above it, we think the stock could make another significant advance.
But if it fails there, the stock may need more time to digest the monster rally off the lows.
Either way, this is a name we want on our radar.
Sezzle has the kind of chart that makes technicians pay attention, the kind of growth that makes fundamental investors lean in, and the kind of earnings sentiment that tells us the market already likes what it sees.
For nearly two and a half hours, the Beat Team pitched its highest-conviction trade ideas and debated them live with Steve Strazza in front of our members.
Steve also pitched a consumer discretionary stock that we think could be one of the next big winners from here.
If you want access to the full meeting, the trade ideas, and our next alerts, join The Beat Report today.
Happy fishing,
-The Beat Team
Editor's Note: Spencer Israel sits across from the entire analyst network every day, hears more good ideas than any one person could ever trade, and picks the ones he likes most.
The SMTV Portfolio is what happens when he puts $10K of his own money behind those calls.
