10 Worst High-Risk High-Reward Growth Stocks To Buy

7. Pagaya Technologies Ltd. (NASDAQ:PGY)

Beta (5Y Monthly): 6.01

3-Year Sales Growth: 29.57%

Number of Hedge Fund Holders: 24

Analyst Upside Potential: 117.77%

Pagaya Technologies Ltd. (NASDAQ:PGY) is a financial technology company that specializes in AI-driven credit assessment solutions for lenders. It develops machine learning and AI analytics to enhance credit underwriting for financial institutions. Its proprietary network processes over 1 application per second, enabling real-time risk assessment and customer matching for lenders.

On March 18, Benchmark Co. analyst Mark Palmer reiterated a Buy rating on the stock with a price target of $25. The analyst mentioned that the company is expected to avoid the dilutive deals and substantial losses that previously pressured its stock price, as it prioritizes growth drivers and profitability. Moreover, the introduction of a pre-screen lending product is also seen as a catalyst for expanding its offerings in financial technology. Pagaya Technologies Ltd. (NASDAQ:PGY) in Q4 2024 achieved self-funded growth demonstrating operational resilience and financial independence. During the quarter the company exceeded expectations with $279.39 million in revenue. It is one of the worst high-risk high-reward growth stocks to buy.