Money transfer specialist Remitly Global is Monday's pick for IBD 50 Growth Stocks To Watch as the fintech name builds a handle in a base.
The money transfer company recently reported better-than-expected results for its fiscal first quarter and raised its 2025 outlook. Remitly has a three-year sales growth rate of 40%, according to IBD Stock Checkup.
The IBD 50 stock is retreating nearly 2% Monday amid overall market weakness.
Remitly offers online international money transfer services including cash pickup, bank deposit, home delivery and deposits to debit cards. It serves customers in more than 170 countries and territories using over 100 currencies.
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Remitly Stock Builds A Handle
Remitly stock is in an early-stage cup-with-handle base with a 24.70 buy point, according to MarketSurge pattern recognition. The stock surged around 14.5% in heavy volume following the company's positive first-quarter earnings report May 7. Shares have pulled back to form a 10% deep handle.
Its relative strength line has reversed sharply lower from its peak, reached following the earnings gap-up.
Shares are around 18% off their 52-week high reached Feb. 18, and the stock is down about 1% on the year.
Remitly stock started trading Sept. 23, 2021, with an initial public offering at 43 a share. Shares currently trade around the 22 level.
Money Transfer Name Posts Surprise Profit
Remitly posted a profit of five cents a share during the first quarter when analysts were expecting a loss. Sales also topped forecasts and grew 34%. Its revenue growth rate has hovered around that level over the last six quarters.
The fintech name's active customers rose to 8 million from 6.2 million a year ago. And the total in cash transfers handled by Remitly increased 41% to $16.2 billion. Further, it gave a second-quarter revenue forecast of $383 million to $385 million, or 25% to 26% growth.
Remitly Global also raised its full-year 2025 sales outlook to $1.574 billion to $1.587 billion from its prior projection of $1.565 billion to $1.58 billion.
"We delivered an outstanding start to the year, significantly exceeding our expectations for the first quarter," Chief Executive Matt Oppenheimer said in the earnings release. "Based on these strong results, we are raising our full year 2025 outlook for both revenue and Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization)."
Where Profits Are Expected To Go
Analysts see full-year 2025 profit of 80 cents a share, reversing from a loss of 19 cents a share in 2024. Wall Street's 2026 estimates call for $1.10 per-share profit in 2026.
Management owns 8% of shares while mutual funds have a 48% stake in the fintech stock. Mutual funds have added the money transfer stock over the last two quarters, with 369 owning Remitly stock in March, up from 333 in December.
It holds a 90 IBD Composite Rating but its Earnings Per Share Rating of 72 is weighed down by its losses in the prior three to five years.
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