Three Promising Tech Stocks Positioned for Growth Amid Market Upswing

Tariff negotiations show progress, and market volatility appears to be easing. This environment suggests that a bull market may be regaining traction. While established names like the Magnificent 7 and prominent AI companies are set to benefit, investors willing to explore lesser-known firms could uncover significant opportunities.

This article focuses on three under-the-radar tech stocks that are already gaining momentum and show potential for further growth. Each of these companies is considered a high-growth innovator, supported by strong growth forecasts, robust stock performance, and a top Zacks Rank.

Sezzle Inc. (SEZL), Pagaya Technologies Ltd. (PGY), and AppLovin (APP) are three notable companies with substantial potential amidst current market conditions. These stocks may not be as widely recognized, but they present noteworthy opportunities for investors willing to embrace higher volatility.

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Pagaya Technologies Ltd: A Rising Star in AI and Finance

Pagaya Technologies Ltd. is emerging as a compelling option in the market. The company blends AI and financial technology to enhance credit decision-making and underwriting for consumer lending platforms. Its proprietary AI models enable financial institutions to broaden access to credit while effectively managing risk—a significant opportunity in a growing market.

After experiencing a downturn following a disappointing Q1 earnings report, Pagaya has rebounded quickly. Analysts have raised earnings forecasts as results turned positive. The company now holds a Zacks Rank #1 (Strong Buy) rating.

Valuation also presents an attractive picture. Pagaya trades at just 8.3 times forward earnings, despite expected sales growth of 20% this year and 16% next year. Notably, earnings are projected to increase by 112% in 2025 and 39% in 2026.

For investors seeking a high-growth, AI-focused stock with significant upside potential, Pagaya is worth considering.

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Sezzle Inc: Affordable Shares Amidst Strong Growth

Sezzle Inc. has become a solid prospect, especially since my initial highlight in the fall of 2024. The company plays a significant role in the Buy Now, Pay Later (BNPL) sector, providing consumers with flexible financing options while emphasizing profitability and controlled growth.

Despite its recent strong performance, Sezzle remains attractively priced, trading at 26.9 times forward earnings. This is particularly appealing given projected sales growth of 62% this year and another 20.8% next year, along with expected earnings growth of 76% in 2025 and 30% in 2026.

Sezzle also holds a Zacks Rank #1 (Strong Buy), reflecting a positive earnings revision trend. Recently, analysts raised earnings estimates significantly, with increases of 46.6% for 2025 and 45.2% for 2026. For growth-oriented investors, Sezzle offers robust momentum and an upward trajectory in expectations.

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AppLovin: A Stock Gaining Attention with Upgrades

AppLovin has emerged as a standout performer in the tech sector over recent years, although it remains relatively under the radar. The company provides a leading mobile app marketing and monetization platform driven by machine learning, assisting app developers in maximizing revenue through targeted advertising and user engagement tools.

Having achieved significant gains over the past two years, AppLovin received attention early on from analysts at Zacks before its substantial rise. Recently, the stock experienced a notable wave of upward earnings revisions, with estimates increasing by 19.2% for the current quarter, 12.5% for the entire year, and 18.8% for the following year.