Sezzle Inc Files For Mixed Shelf Offering, Size Not Disclosed - Sec Filing

Financial stocks were edging higher in late Wednesday afternoon trading, with the NYSE Financial Index up 0.1% and the Financial Select Sector SPDR Fund (XLF) rising 0.2%.

The Philadelphia Housing Index increased 0.1%, and the Real Estate Select Sector SPDR Fund (XLRE) gained 1%.

Bitcoin (BTC/USD) jumped 1.6% to $90,901, and the yield for 10-year US Treasuries rose rising 1.6 basis points to 4.45%.

In economic news, the US seasonally adjusted consumer price index rose by 0.2% in October, as expected in a survey compiled by Bloomberg, and following a 0.2% increase in September, the Bureau of Labor Statistics said.

In corporate news, Dave's shares surged 43%, a day after the company boosted 2024 guidance. B. Riley raised the company's price target to $103 from $63 and maintained the buy rating.

Sezzle shares rose 2% after it said Wednesday its Pay-in-4 flexible payments platform is now available for Rural King customers at the retailer's 130 US stores and online.

Dime Community Bancshares said Wednesday it closed its public offering of about 4.5 million shares at $32 per share for gross proceeds of roughly $144 million. Its shares added 0.7%.

Hut 8 shares popped 4.9% after the company reported it swung to a Q3 profit as revenue more than doubled compared with a year earlier.

Sezzle Inc. (SEZL) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.

The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Sezzle Inc. There has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

Current-Quarter Estimate Revisions

The company is expected to earn $3.08 per share for the current quarter, which represents a year-over-year change of +503.92%.

Over the last 30 days, the Zacks Consensus Estimate for Sezzle Inc. has increased 39.37% because two estimates have moved higher compared to no negative revisions.

Current-Year Estimate Revisions

The company is expected to earn $9.78 per share for the full year, which represents a change of +682.4% from the prior-year number.

The revisions trend for the current year also appears quite promising for Sezzle Inc. with one estimate moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 45.75%.

Favorable Zacks Rank

Thanks to promising estimate revisions, Sezzle Inc. currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Sezzle Inc. shares have added 127.4% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.

Zacks Investment Research