Sezzle Inc., a key player in the Buy Now, Pay Later (BNPL) sector, has experienced a substantial downturn in its stock performance, with shares falling by around 60% in less than half a year. This significant decrease has prompted discussions about whether the stock, once a market darling, now represents an attractive value investment opportunity for the first time in a considerable period.
The company operates within a competitive U.S. online credit market, facing off against rivals such as Affirm Holdings Inc. and Klarna Group Inc. After going public on Australia's ASX in 2019 at A$1.22 (approximately $0.84 per share), Sezzle witnessed an astounding 22,131% surge in its stock value by mid-2025.
Benzinga's Edge Stock Rankings utilize a 'Value score' which assesses a stock's core fundamentals, including earnings, assets, and growth performance, against its market valuation. This score then ranks the stock as a percentile relative to its industry peers. Sezzle's Value score in these rankings has recently jumped from 25.76 to 34.61 over a single week, reflecting the sustained downward pressure the stock has endured in recent months.
In the wake of its considerable pullback, Sezzle's shares are now trading at 16 times forward earnings. This valuation positions it as significantly undervalued, especially when juxtaposed with its competitors, Affirm and Klarna, which are currently trading at 74.63 and 52.36 times forward earnings, respectively. Analysts largely maintain an optimistic outlook on Sezzle's stock, with a consensus price target of $174.80, indicating a potential upside of 143% from its current price levels.
Despite the recent improvement in its 'Value score', Sezzle's performance in Benzinga's Edge Stock Rankings remains low for 'Momentum' and 'Value' categories. However, the stock shows a favorable price trend in the near term, suggesting a potential rebound despite its overall lower scores in certain fundamental metrics.